The consolidated top-line for the quarter ended March 2012 has increased by 119% to Rs 2749.77 crore. The consolidated Results for the current quarter include the results of Sabero also. For the quarter, the company had a sale of 9.13 lakh tonnes of fertilisers which includes urea distribution of 1.63 lakh tonnes and MOP of 0.45 lakh tonnes as compared to 5.66 lakh tonnes last year. Whereas for DAP and complexes fertilisers, there was an increase from 4.18 lakh tonnes to 7.32 lakh tonnes during the quarter.

The company saw pressure in its operating margins, which fell by 217 bps to 5.7% due to rise in consumption of raw materials. The net profit has come down by 6% to Rs 66.89 crore due to rise in tax rate.

Performance for quarter and year-end

(The Consolidated Results for the quarter and year ended March 31, 2012 include audited consolidated results of Sabero Organics Gujarat Limited and its subsidiaries and the audited results of Parry Chemicals Limited, CFL Mauritius Limited, Coromandel Brasil Limitada, wholly-owned subsidiaries and Tunisian Indian Fertiliser SA (TIFERT), Coromandel Getax Phosphates Pte Limited and Coromandel SQM (India) Private Limited, Joint venture Companies. In respect of TTFERT, as financials for the year ended March 31, 2012 are not available, un-audited financial results upto December 31, 2011 have been considered. Further in respect of CFL Mauritius Limited, Coromandel Brasil Limitada and Coromandel Getax Phosphates Pte. Ltd., un audited results have been used for preparing the consolidated results for the current quarter and year.)

Consolidated Performance for the quarter ended March 2012

The top-line has increased by 119% to Rs 2749.77 crore. The consolidated Results for the current quarter include the results of Sabero also.

For the quarter, the company had a sale of 9.13 lakh tonnes of fertilisers which includes urea distribution of 1.63 lakh tonnes and MOP of 0.45 lakh tonnes as compared to 5.66 lakh tonnes last year. Whereas for DAP and complexes fertilisers, there was an increase from 4.18 lakh tonnes to 7.32 lakh tonnes during the quarter.

The company has recognized subsidy income included in the Net sales / Income from operations, as per the prevalent Nutrient Based Subsidy Policy (NBS). The subsidy income for the quarter includes Rs 5.36 crore relating to earlier periods consequent to the determination of final rates of concession

The company saw pressure in its operating margins, which fall by 217 bps to 5.7% due to rise in consumption of raw materials by 160 bps to 72.3% of adjusted net sales. The operating profit increased by 59% to Rs 156.75 crore.

Consequent to the sale during the year of the remaining quantum of the Fertiliser Companies' Government of India Special Bonds and receipt of losses claimed from the Government of India in the current quarter, the company accounted for the loss of Rs 10.08 crore for the quarter ended March 31, 2012 (Rs 37.18 crore for the quarter ended March 31, 2011) respectively and the same is included under 'Other Expenses'. The provision towards mark to market loss made earlier on such bonds amounting to Rs Nil for the quarter ended March 31, 2012 (Rs 68.89 crore for the quarter ended March 31, 2011) respectively has been reversed and is included under 'Other Operating Income'.

Other income of the company was down 19% to Rs 13.95 crore. Interest is up by 118% to Rs 50.39 crore. Depreciation was up by 21% to Rs 17.83 crore. PBT was up by 31% to Rs 102.48 crore.

The tax outgo has increased by 468% to Rs 39.84 crore. Effective tax rate was up from 9% to 38.9%. The net profit after minority interest has come down by 6% to Rs 66.89 crore due to rise in tax rate.

Consolidated Performance for the year ended March 2012

The top-line rose 30% to Rs 9901.57 crore. For the whole year, the company had a sale of 32.72 lakh tonnes of fertilisers a growth of about 7%.

The company has recognized subsidy income included in the Net sales / Income from operations, as per the prevalent Nutrient Based Subsidy Policy (NBS). The subsidy income for the FY12 includes Rs 46.12 crore ( against Rs 226.52 crore for FY11) relating to earlier periods consequent to the determination of final rates of concession

The operating margins saw a fall of 317 bps to 10.6%. The operating profit was stagnant at Rs 1054.44 crore.

Consequent to the sale during the year of the remaining quantum of the Fertiliser Companies' Government of India Special Bonds and receipt of losses claimed from the Government of India, the company accounted for the loss of Rs 52.75 crore for the year ended March 31, 2012 (Rs 37.18 crore for the year ended March 31, 2011) respectively and the same is included under 'Other Expenses'. The provision towards mark to market loss made earlier on such bonds amounting to Rs 68.89 crore for the year ended March 31, 2012 (Rs 68.89 crore for the year ended March 31, 2011) respectively, has been reversed and is included under 'Other Operating Income'.

Other income declined by 4% to Rs 78.04 crore. Interest is up by 42% to Rs 126.12 crore. Depreciation was down by 4% to Rs 59.7 crore. PBT before EO was down by 4% to Rs 946.66 crore.

There was an EO expenses of Rs 35.53 crore which is non-compete fee paid to erstwhile Indian promoters of Sabero Organics Gujarat. The tax outgo has decreased by 5% to Rs 276.59 crore. The net profit after minority interest has come down by 8% to Rs 638.79 crore.

Management Comments

Commenting on the financial results, Mr. Kapil Mehan, Managing Director, Coromandel International Limited stated -

We are pleased to report a much improved performance in all our business segments with higher sales and profits for the quarter and the year ended March 2012. This has been achieved under challenging business environment of volatile raw material prices and depreciating rupee. Our capital expansion programs are progressing as per schedule.

Other Developments

The company has obtained approvals from the shareholders and the stock exchanges, for issue of one 9% Unsecured Redeemable Non-convertible Fully Paid Bonus Debentures of Rs 15 each for every equity share by appropriating the General Reserve through a Scheme of Arrangement (Scheme). The company has filed the Scheme in the Hon'ble High Court of Andhra Pradesh and is awaiting its approval.

During the previous quarter, the Members of the Company pursuant to the provisions of Section 293(l)(a) of the Companies Act, 1956 approved the transfer/assigning of the lease rights on the land located at Navi Mumbai to prospective buyers.

During the previous quarter, the company pursuant to the approval from Securities Exchange Board of India (SEBI) for the Open Offer under SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, acquired 1,05,00,000 (31%) equity shares of Sabero Organics Gujarat Limited (Sabero) at a price of Rs 160/- per share. Further, pursuant to the Share Purchase Agreement entered into with the erstwhile promoters of Sabero, the Company completed the acquisition of 1,42,98,112 (including 18,53,659 equity shares during the current quarter) (4222%) equity shares of Sabero. The company along with its wholly owned subsidiary (Parry Chemicals Ltd.,) holds 74.57% of the equity share capital of Sabero and effective December 17, 2011 Sabero became a subsidiary of the Company.

During the quarter, pursuant to the exercise of stock options by certain employees under the 'ESOP 2007' scheme, the Company has allotted 178,484 (Quarter ended March 31, 2011 :175,072) equity shares o Rs. 1/- each at the respective exercise price.

The Board of Directors at their meeting held on April 23, 2012 has recommended a final dividend of Rs 3/- per share (300% on face value of Rs. 1/- share). The Board had earlier approved payment of interim dividend of Rs 4 per share (400% on face value of Rs. 1/- share) at their meeting held on January 23, 2012.

Valuation

The scrip is currently trading at Rs 285.5 on the BSE.

The promoter holding in the company is at 63.91%.

Coromandel International: Consolidated Results