Coromandel International Q1 Review - Ripe For Rerating: Prabhudas Lilladher
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Prabhudas Lilladher Report
Coromandel International Ltd. reported better than anticipated results on all parameters driven by-
1. better backward integration benefits along with inventory gains in the nutrient segment (Ebit up 8% versus our estimate of 23% decline) and
2. higher than anticipated growth in exports and business-to-business sales in the crop protection segment (topline growth of 50% versus our estimate of 2%).
Fertiliser segment volume was down 5%, but realisation was up 14%.
Despite raw material cost inflation, Coromandel International stands firm footed to defend its FY21 profitability primarily guided via higher nutrient based subsidy by government of India, benefits of backward integration, price hikes and investment in projects to enhance efficiency.
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