Coromandel International to invest Rs 800 cr for expansion

CHENNAI: Coromandel International Limited, India’s leading agri solutions provider is in the business of fertilisers, reported a dip in Q2 net profit at Rs 696 cr on a standalone basis against Rs 762 cr in Q2 for the corresponding quarter of last year.

Coromandel’s total income for the quarter ended September 2024 was at Rs 7,498 cr against Rs 7,033 cr for the quarter ended September 2023. The profit after tax for the quarter was at Rs 659 cr as against Rs 755 cr for the quarter ended September 2023.

Coromandel’s total income for the first half was at Rs 12,281 cr vs Rs 12,771 cr in the corresponding period of the previous year. The net profit for the first half was Rs 968 cr as against Rs 1,249 cr in the corresponding period of the previous year.

Sankarasubramanian S, MD-CEO, Coromandel International, said “Company registered a healthy performance in Q2, led by higher sales volumes and improved operational efficiencies across the businesses. The company continues to make sequential recovery quarter on quarter, despite lower subsidy rates and firming up of raw material prices. Company continues to expand its retail footprint and has opened 45 new stores during the first half of the year.”

The Board of Directors on Thursday approved capital projects with an investment outlay of around Rs 800 crore mainly pertaining to enhancement of granulation capacity by 7.5 lakh tons per annum for manufacture of complex and unique fertilisers at Kakinada, Andhra Pradesh, and setting up of a multi-product plant (MPP) for manufacture of recently off-patented fungicides at Ankleshwar, Gujarat.

The capacity enhancement will involve setting up of a new granulation train for NPKs at Coromandel’s existing fertiliser manufacturing unit at Kakinada. The new granulation train will have an annual production capacity of 7.5 lakh tons, taking the total production capacity of the Kakinada site to 30 lakh tons.

Coromandel’s Board has also approved the establishment of a MPP for manufacturing crop protection technicals at its Ankleshwar unit in Gujarat.

Besides these major capex projects, the Board has also approved fund infusion into company’s mining entity Baobab Mining Chemical Corporation (BMCC) at Senegal for its ongoing capex program. Also, during the quarter, Coromandel through its wholly-owned subsidiary, Coromandel Chemicals, has announced acquisition of additional 8.8 per cent stakes in BMCC, subject to regulatory approvals, which will take its overall shareholding in BMCC to 53.8 per cent.