Coromandel International Ltd’s consolidated net profit declined 32 per cent to Rs 164 crore for the second quarter ended September 30, 2013, from Rs 238 crore in the same quarter a year ago.
The company’s turnover, however, increased 20 per cent to Rs 3,215 crore (Rs 2,675 crore).
The net profit declined due to the absence of certain tax benefits availed by the company last year and pricing pressure, said Kapil Mehan, Managing Director, addressing newspersons on Tuesday.
Measures such as doubling sales through retail networks, distribution through co-operative institutions and increasing the field force led to sales volume growth.
Coromandel International’s subsidiary, Sabero Organics, registered 56 per cent growth in turnover during the quarter. Apart from these factors, the strong monsoon had a positive effect on the company’s agri-inputs business, Mehan added.
On a half-yearly basis, turnover increased to Rs 5,113 crore from Rs 4,529 crore in the previous year.
On the pricing scenario, Mehan said there could be some stability despite the rupee’s depreciation, as international fertiliser and raw material prices had come down.
“With the widespread South-West monsoon, and increase in acreage, we are going to see bumper kharif production this year. Good rainfall, rabi ( crop) and the recent increase in minimum support prices for wheat and barley will drive the agri-input business,” the Managing Director said.
AP AGITATION
The ongoing agitation in the Seemandhra region against the proposed bifurcation of Andhra Pradesh impacted the business “to a little extent,” said Mehan. There were difficulties for the labour force and in retail sales, he added.
The company’s scrip gained 1.27 per cent to close at Rs 232.05 on the BSE on Tuesday.
naga.gunturi@thehindu.co.in