Coromandel International Concall was today at 2:30 PM.
Here are key highlights of the Conference Call😀
Here are key highlights of the Conference Call😀
- Rural economy is at a good spot it and had a bumper harvest in Kharif season.
- Above normal rainfall happened. Reservoir level is good. Main crops like cotton had harvest of106% and rice had the harvest of 102%.
- Above normal rainfall happened. Reservoir level is good. Main crops like cotton had harvest of106% and rice had the harvest of 102%.
- Government policies: Government is proactively making reforms in agriculture.
- There is focus on making better storage facility, infrastructure and better access for farmers to markets.
- There has been increase in MSP.
- There is focus on making better storage facility, infrastructure and better access for farmers to markets.
- There has been increase in MSP.
- Covid 19: In agriculture government has taken good measures.
- Govt insured that food stability is maintained
- Subsidy has been reduced in agriculture
- Govt insured that food stability is maintained
- Subsidy has been reduced in agriculture
-if 2500 is been given as subsidy at the start of rabi and kharif season then 82% of the farmers get subsidized fertilizer but it will take time
- Company had good quarter despite the pandemic. Agri input which is so important for farmers has been provided
- Marginal decrease of market share from 17% to 16% YoY.
- Strong growth in B to B and B to C. Strong product portfolio.
- Marginal decrease of market share from 17% to 16% YoY.
- Strong growth in B to B and B to C. Strong product portfolio.
- Company has started infrastructure development
- all the stores operated during lockdown
- H1 total income is at 7843 crore.
- Company generated healthy working capital, maintained optimum inventory level.
- all the stores operated during lockdown
- H1 total income is at 7843 crore.
- Company generated healthy working capital, maintained optimum inventory level.
- During the quarter the payment of subsidy by government has been low. Company received 792 crore as subsidy.
- Balance Sheet remains strong. Debt / Equity is at 0.3
- Forex rupee trading in range. Company has the exposure in line with the hedging strategy.
- Balance Sheet remains strong. Debt / Equity is at 0.3
- Forex rupee trading in range. Company has the exposure in line with the hedging strategy.
- Surplus cash: working capital management has been properly managed.
-Capex plan was of 450-500 crore But a part of it will be deferred. . De-bottlenecking of Vizag and Kakinada plant will be done now.
-Capex plan was of 450-500 crore But a part of it will be deferred. . De-bottlenecking of Vizag and Kakinada plant will be done now.
- Cash generation will help in long term growth plan. Company is open for any inorganic growth opportunity.
- Domestic sales: 26% sales has come from products which has been introduced in last 2 years.
- Domestic sales: 26% sales has come from products which has been introduced in last 2 years.
- Company is working with Japanese company for products to cater to India's demand.
- In the First 1-1.5 month of quarter, company was slow to operate vizag plant.
- Company had started the quarter with low inventory.
- In the First 1-1.5 month of quarter, company was slow to operate vizag plant.
- Company had started the quarter with low inventory.
- Telangana govenment has build up canals and there is good water retention.
-Govt and framers looking at new crops other then traditional crops which can increase income of farmers as well.
- Organic farming is being promoted in small way.
-Govt and framers looking at new crops other then traditional crops which can increase income of farmers as well.
- Organic farming is being promoted in small way.
- Focus is on quality rather then quantity. Company is operating at 90% capacity.
- Closed plants due to avoid covid spread within the plant and people who had Covid can be isolated.
- They had isolation space across plants to provide safety of people and plant
- Closed plants due to avoid covid spread within the plant and people who had Covid can be isolated.
- They had isolation space across plants to provide safety of people and plant
- Agriculture minister of Telangana is focusing on instead of use of urea there should be use of fertilizer.
- company is promoting organic fertilizer as this rejuvenates the soil.
- There should not be excessive use of fertilizers
- company is promoting organic fertilizer as this rejuvenates the soil.
- There should not be excessive use of fertilizers
- There is 15% growth in primary space (invoiced to dealers.)
- growth of sales to farmers has been 30%
- In past backward integration which company did is fully operational and company will see how to fully maximize it.
- growth of sales to farmers has been 30%
- In past backward integration which company did is fully operational and company will see how to fully maximize it.
- Company will maximize the volume not just by manufacturing product, company will also be importing some of it.
- Major contribution in margin improvement: total backward integration of plant in vizag.
- Major contribution in margin improvement: total backward integration of plant in vizag.
- Crop protection segment will be the growth driver for long term.
- For long term growth company plans to participate more effectively both in B to C & B to B business.
- Company will also focus on development of new molecules & partnership for development of molecules.
- For long term growth company plans to participate more effectively both in B to C & B to B business.
- Company will also focus on development of new molecules & partnership for development of molecules.
- Crop protection business will be at a good spot in 3-5 years.
- Government has a budget of subsidy. Government expected urea consumption to go down but that did not happen. So government diverted some funds to pay the back log of urea subsidy.
- Government has a budget of subsidy. Government expected urea consumption to go down but that did not happen. So government diverted some funds to pay the back log of urea subsidy.
- Rural demand has helped the economy. Government is also putting lot of money in rural area.
- By digital marketing company could reach directly to farmers so that farmer know which fertilizers is to be used, during the time of Covid.
- By digital marketing company could reach directly to farmers so that farmer know which fertilizers is to be used, during the time of Covid.
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