Coromandel International Q1 net falls 26% despite higher revenue
Coromandel International reported a 26% decline in quarterly net profit due to rising raw material costs caused by the Middle East conflict. Despite the profit dip, the company saw revenue growth and continues to expand its production capacity in fertilizers and crop protection.
Why it matters
The report highlights how geopolitical instability directly impacts agricultural input costs and corporate profitability in the fertilizer sector.
Agri-solutions provider Coromandel International’s standalone net profit declined 26% year-on-year (YoY) to ₹377 crore in the June quarter as elevated raw material costs triggered by West Asia crisis weighed on the performance of the fertiliser business.
However, the company’s total income grew 10% YoY to ₹7,792 crore in the review period.
“During the quarter, the Middle East conflict resulted in a sharp escalation in raw material prices, while subsidy rates remained inadequate to fully offset the increased input costs,” MD and CEO S.Sankarasubramanian said.
Despite the challenging environment, the company strengthened its leadership position in the phosphatic fertilisers segment by improving market share and adopting a disciplined approach to production, procurement and inventory management, ensuring uninterrupted fertiliser supplies to the farming community, he said.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in