Coromandel International Ltd. share price target

Encouraging outlook driven by normal monsoon forecast Results in-line: Coromandel's overall revenue grew 1% YoY to INR30.2b (vs. our estimate of INR28.7b) in 4QFY16. EBITDA grew 25% YoY to INR2b (vs. our...

Manufactured fertiliser margins fell to a level of Rs 1456/mt (v/s 9M Rs 1520/mt). Higher production of low margin DAP fertilliser and trading impacted fertiliser margins. Absolute EBITDA declined a sharp 30%. A 20% jump in interest outgo was somewhat offset by...

Coromandel International (CRIN) reported an EBITDA of Rs 1.7bn (-27% YoY), led by a drop in fertiliser volumes (-15%) and margins. The non-subsidy business was under pressure owing to unfavourable weather conditions and muted agri-commodity prices. High interest cost ( 21%, higher subsidy receivables) dragged APAT to Rs 636mn (-47%).

Coromandel International (CRIN) reported an EBITDA of Rs 3.1bn (-10% YoY), led by the non-subsidy business (-25%). Unfavourable weather conditions and muted agri-commodity prices put pressure on pesticides in the domestic and export markets. Higher other income and lower interest cost (easing subsidy situation) helped a bit, with PAT at Rs 1.7bn (-4%).

9 Fertiliser margins rebound sharply, driving gross margin higher by 150bps. Higher freightweigheddownEBITDAby9%,buthigherotherincomeandlowerinterestoutgo curtailedfallinPAT(down3%,aheadofourestimates)...

Coromandel's Q1FY16 results disappoint due to oneoff issues (production restrained by feed availability, inventory writeoffs for cropchemicals, delayed subsidy reimbursements) that led to higher hedging costs and interest outgo. Positively,...

Coromandel Internationals (CRIN) 1QFY16 EBITDA was below estimate at Rs 924mn (-24% YoY) led by both subsidy (-29%, higher share of traded fertilisers) and non-subsidy biz (-17% YoY, lower exports to Latin America). Subsidy situation remains stretched. Consequently, PAT declined by 56% to Rs 145mn.

15dueto industrywide challenges and its investments dampeningearnings and returns (acquisition of Sabero, Liberty). With an improved industry scenario, rising capacity utilization,anddebtrepayment,earningscouldpotentiallycompound30%overFY1517E,...

Coromandel Internationals (CRIN) 4QFY15 EBITDA was below estimate at Rs 1.6bn (-11% YoY) led by higher RM cost and low margins in non-subsidy biz (down to 12.9%, -183bps led by lower exports to Brazil). Subsidy situation further deteriorated and Mar-15 receivables are ~50% of FY15?s total subsidy.