Coromandel International, a fertilizers stock, is coming up with hefty dividend rewards to the tune of 600% for FY24. This comes despite lower profitability on a year-on-year basis in Q4FY24. The company's standalone PAT was at Rs 262 crore, down by 20% YoY. While total income stood at Rs 4,027 crore, also down by 27% YoY. Standalone EBITDA came in at Rs 269 crore, plunging by 33% YoY.
Coromandel International Dividend:
On April 25th, this fertilizers company recommended a final dividend of Rs. 6/- per equity share of Face Value Re. 1/- each (600%) for the financial year 2023-24, subject to the approval of shareholders at the ensuing 62nd Annual General Meeting (AGM) of the Company, scheduled to be held on August 7, 2024.
The record date to determine eligible shareholders for the dividend payout is fixed on July 26, 2024. While the final dividend, if approved, will be paid on or after August 27, 2024, but within 30 days from the date of the AGM.
Coromandel International Share Price:
Coromandel's share price stood at Rs 1115.35 apiece, on BSE with gains of 2.6% on April 25. Its market cap is at Rs 32,840.70 crore.
The stock's 52-week high and low are at Rs 1,287.95 and Rs 908.80 apiece respectively. Its price-to-equity ratio is at 18.53x.
Among its corporate actions, Coromandel has delivered up to 35 dividends since July 2001, as per Trendlyne data. In the past 12 months, the company paid dividends up to Rs 6 per share. Currently, it has a dividend yield of 0.54%.
Apart from dividend payout, Coromandel shares have turned ex-split twice. The last stock split carried by Coromandel was in December 2010 for the ratio of 1:2, where its face value of Rs 2 was split to Rs 1 each. Before this, the company carried a stock split of 1:5 ratio in January 2006, where its face value split from Rs 10 to Rs 2 each.
Coromandel International Q4 Results:
Nutrient and Allied Business: The company's nutrient and allied business revenue was at Rs 3,358 crore in Q4FY24 as against Rs. 4,881 crore during Q4 of the Previous Year. Profit before interest and tax for the quarter was Rs. 248 crore vs Rs. 339 crore for the quarter ended March 2023.
Crop Protection Business: Revenue here was at Rs. 564 crore as against Rs. 610 crore during Q4 of the Previous Year. Profit before interest and tax for the quarter was Rs. 63 crore vs Rs. 89 crore for the quarter ended March 2023.
Consolidated Results: Coromandel's Total income for the quarter ended March 2024 was at Rs. 3,996 Cr vs. Rs. 5,523 Cr for the quarter ended March 2023. The profit after tax for the quarter was at Rs. 164 Cr as against Rs. 246 Cr for the quarter ended March 2023.
Also, on a consolidated basis, Coromandel's total income for FY23-24 was at Rs. 22,290 Cr vs. Rs. 29,799 Cr in the previous year. The profit after tax for the year was at Rs. 1,641 Cr as against Rs. 2,013 Cr in the previous year.
Arun Alagappan, Executive Vice Chairman, Coromandel International said, "FY2023-24 was marked by a challenging business environment as sub-normal monsoons and lower reservoir levels in Coromandel's key operating markets impacted the agri-inputs consumption. Further, the sharp corrections in subsidy rates in second half of the year coupled with global headwinds in Crop Protection resulted in margin pressure. Despite this, Coromandel adapted well to register a satisfactory performance and has taken progressive steps to strengthen its operations during the year."
The chairman added, Fertilizer Plants operated at higher capacity at 95% levels and improved their backward integration capabilities. Crop Protection registered a strong 20% volume growth across the international and domestic markets and plans to introduce new molecules through captive and in-licensing arrangements. Retail stores improved its farm-level outreach and are expanding its footprint in new markets in FY25. The company has also scaled up its drone spraying services and during the year covered 25000+ acres.
Moreover, he also said that as part of its diversification strategy, the Company forayed into Speciality chemicals by leveraging its existing infrastructure and continued its engagement in CDMO opportunities. Investment in drone company Dhaksha is progressing well with a strong order book of around Rs 250 crores from the Defence and Agriculture segments.
Looking ahead, Alagappan said, "The company is committed to strengthening its core businesses and invest in novel technologies and adjacent opportunities. The forecast of an above normal monsoon and correction in NBS rates bodes well for the industry and we expect the market fundamentals to improve in the coming period."
Coromandel International Limited is amongst India's pioneers and leading Agri solutions provider, offering diverse products and services across the farming value chain. It operates in two major segments: Nutrient and other allied businesses and Crop Protection. These include Fertiliser, Crop Protection, Bio Products, Specialty Nutrients and Organic businesses. The Company is 2nd largest manufacturer and marketer of Phosphatic fertiliser in India.
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