COROMANDEL INTERNATIONAL - Q2 FY 21 RESULTS ANALYSIS

 

COROMANDEL INTERNATIONAL

Q2 FY 21 RESULTS ANALYSIS 

 

COMPANY OVERVIEW

Coromandel International Ltd is engaged in the manufacturing of fertilizers, plant protection chemicals and speciality nutrients.

The Company also markets phosphogypsum and sulphur pastilles and is exploring the possibilities to conduct business in Latin America.

The company has also ventured into the retail business in the agri and lifestyle segments.In their endeavour to be a complete plant nutrition solutions company, they have also introduced a range of Specialty Nutrient products including Organic Fertilizers,bentonite sulphur, water soluble fertilisers and micronutrients

MANAGEMENT

  M M Murugappan          Chairman

  V Ravichandran             Vice Chairman

  Sameer Goel                 Managing Director

 

Coromandel International (in Rs. Cr.)	Sep '20	Jun '20	Sep '19	YOY	QOQ
Net Sales	4,611	3,213	4,858	-5	44
FINAL NPT	589	251	504	17	135
Equity	29.32	29.32	29.26	0.21	0
Basic EPS	20.09	8.55	17.22	16.7	135
Raw Materials	1,845.56	1,287.70	1,977.29	-6.66	43.32
Purchase of Traded Goods	760.6	622.8	259.23	193.41	22.13
Increase/Decrease in Stocks	460.78	370.65	1,285.01	-64.14	24.32
Employees Cost	136.04	121.58	112.79	20.61	11.89
Depreciation	41.95	42.11	41.68	0.65	-0.38
Other Expenses	565.2	398.01	510.67	10.68	42.01
P/L Before Other Inc., Int., Excpt. Items & Tax	801.14	370.38	671.31	19.34	116.3
Other Income	8.23	10.69	9.5	-13.37	-23.01
P/L Before Int., Excpt. Items & Tax	809.37	381.07	680.81	18.88	112.39
Interest	25.28	43.44	66.35	-61.9	-41.8
P/L Before Tax	784.09	337.63	614.46	27.61	132.23
Tax	196.68	89.61	110.99	77.21	119.48
Net Profit/(Loss) For the Period	587.41	248.02	503.47	16.67	136.84
Share Of P/L Of Associates	1.52	2.55	0.43	253.49	-40.39

 

MP                 761

PE                  9.45

VOLUMES        6,58,429

52 W L / H      444  838

Particulars      September 2020    30 June 31March

i) Debt Equity Ratio  0.03      0.30        0.37

n) Debt  Service Coverage Ratio 18.-15 9.96 7.50

 iii) Interest Service Coverage Ratio (in times) 18.45 9.96 7.5

 

Annual Results	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	13,136	13,224	11,082	10,030	11,481
Other Income	40	37	59	54	66
Total Income	13,176	13,261	11,142	10,085	11,547
Total Expenditure	11,563	11,919	9,925	9,148	10,795
EBIT	1,613	1,342	1,217	936	750
Interest	235	250	178	223	220
Tax	313	372	346	235	171
Net Profit	1,064	719	691	477	357

 

CASH FLOWS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	1,861	526	263	915	18
Investing Activities	-221	-597	32	-78	-61
Financing Activities	-1,723	-244	-1	-864	8
Others	1	0	5	0	0
Net Cash Flow	-81	-314	299	-27	-34

 

STRENGTHS

Companies with strong financials

Rising Net Cash Flow and Cash from Operating activity

Strong QoQ EPS Growth in recent results

Growth in Net Profit with increasing Profit Margin (QoQ)

Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

Company with Low Debt

Increasing Revenue every quarter for the past 2 quarters

Increasing profits every quarter for the past 2 quarters

Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years

Annual Net Profits improving for last 2 years

Book Value per share Improving for last 2 years

FII / FPI or Institutions increasing their shareholding

Recent Results : Growth in Operating Profit with increase in operating margins (YoY)

Strong Momentum: Price above short, medium and long term moving averages

 

Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	36.4	24.64	23.67	16.36	12.27
Diluted Eps (Rs.)	36.31	24.6	23.59	16.34	12.25
Book Value [Excl. Reval Reserve]/Share (Rs.)	147.36	114.82	99.05	99.1	90.42
Dividend/Share (Rs.)	12	6.5	6.5	5	4
Face Value	1	1	1	1	1
Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	13.48	11.19	11.87	10.34	7.25
Operating Margin (%)	12.27	10.33	10.98	9.33	6.33
Net Profit Margin (%)	8.1	5.44	6.24	4.76	3.11
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	24.66	21.45	23.86	16.49	13.57
ROCE (%)	33.72	39.08	39.94	15.55	12.42
Return On Assets (%)	10.49	6.81	7.01	5.51	3.89
Liquidity Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Current Ratio (X)	1.45	1.24	1.2	1.23	1.15
Quick Ratio (X)	0.95	0.78	0.87	0.92	0.78
Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0.38	0.88	0.94	0.77	1
Interest Coverage Ratios (%)	6.86	5.45	6.83	4.19	3.29
Turnover Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Asset Turnover Ratio (%)	129.44	125.06	112.53	116.02	125.04
Inventory Turnover Ratio (X)	4.87	4.08	4.9	5.82	4.89
Valuation Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
P/E (x)	0	13.02	10.56	17.93	15.83
P/B (x)	3.69	4.35	5.29	3.16	2.1
EV/EBITDA (x)	9.87	11.76	13.29	10.78	9.55
P/S (x)	1.21	1.1	1.38	0.91	0.48
Growth Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
3 Yr CAGR Sales (%)	9.41	4.82	-0.66	-0.07	8.32
3 Yr CAGR Net Profit (%)	30.61	26.27	19.86	9.39	-6.24

 

HISTORICAL PRICES
	THEN	NOW	DIFF
3YRS BEF	515	750	45.63
2YRS BEF	409.65	750	83.08
1YR BEF	460.8	750	62.76
3M BEF	782.75	750	-4.18

 

Type	Dividend%	Ex-Dividend date
Final	1200	Jul 16, 2020
Final	350	Jul 10, 2019
Interim	300	Jan 31, 2019
Final	350	Jul 19, 2018
Interim	300	Mar 22, 2018

 

Share Holding Pattern in (%)
Standalone	Jun-20	Mar-20	Dec-19	Sep-19
Promoters	59.6	61.63	61.69	61.72
Pledged	0.01	0.01	0.01	0.01
FII/FPI	4.26	3.5	3.54	3.39
Total DII	26.5	25.63	24.49	24.3
Fin.Insts	0.03	0.02	0.05	0.06
Insurance Co	0.37	0.41	0.5	0.75
MF	16.38	15.75	14.63	14.35
Others DIIs	9.72	9.45	9.31	9.14
Others	9.65	9.23	10.29	10.59
Total	100.01	99.99	100.01	100

 

Valuation

Market Cap (Rs Cr.)       22,304.36

P/E         16.85

Book Value (Rs)     149.69

Dividend (%)  1200

Industry P/E   9.99

EPS (TTM)      45.14

P/C                15.07

Price/Book      5.08

Dividend Yield.(%)  1.58

Face Value (RS)      1

Deliverables (%)     59.71

 

Outlook

The company has been strategically launching higher-margin products which have been getting a decent response and gaining traction. An improved product mix is a positive for margins in the long term.

Post some impact in Q1, distribution and production are back to normal. In the longer term, we expect better growth on a growing share of the non-subsidy business, higher margins due to a better product mix and an improvement in performance of the crop protection business.

 

The Consolidated Results includes the results of the following entities:

Parent:  Coromandel International Limited, India. Subsidiaries: 

(a)  Coromandel Brasil  Limitada, LLP, Brazil; 

(b)  Parry  America, Inc., USA;

(c)  Sabero Organics  America  S.A., Brazil; 

(d)  Sabero  Australia  Pty  Ltd,  Australia;

(e)  Sabero  Europe  B.V., Netherlands;

(f)  Sabero Argentina S.A., Argentina;

(g) Coromandel Agronegocios de Mexico, S.A de C.V., Mexico; 

(h)  Liberty  Pesticides and  Fertilisers  Limited,  India;

(i)  Parry  Chemicals Limited,  India;

(j)  Dare  Investments  Limited,  India;

(k)  CFL  Mauritius Limited, Mauritius; 

(I) Coromandel International (Nigeria) Limited,  Nigeria; 

(m)  Coromandel Mali SASU,  Mali;  and 

(n)  Coromandel SQM (India) Private Limited,  India (with effect from August 24, 2020)

Joint Ventures: 

(a)  Coromandel SQM (India) Private  Limited,  India; (upto  August  23,  2020) and 

(b) Yanmar Coromandel Agrisolutions Private Limited, India. Associate:  Sabero Organics  Philippines Asia Inc, Philippines.