The top-line for Q1 FY12 has increased by 3% to Rs 1854.54 crore driven by higher realizations in fertilizer business & strong growth in non-subsidy business. The company's fertilizer sales volume stood at 4.92 lakh tones. The company has recognized subsidy income included in the Net sales / Income from operations, as per the prevalent Nutrient Based Subsidy Policy (NBS).

The company saw pressure in its operating margins, which fell by 255 bps to 11.4% due to rise in other expenditure. The net profit has come down by 28% to Rs 115.05 crore due to fall in margin and increased interest cost

Performance for quarter end

(The Consolidated Results for the quarter ended June 30, 2012 include unaudited 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..

The consolidated results for the quarter include Management accounts of CFL Mauritius Limited, Coromandel Brasil Limitada and Coromandel Getax Phosphates Pte. Ltd. In respect of TIFERT, on account of the prevailing situation in that country (Tunisia) the financkls for the quarters ended 31 March 2012 and 30 June 2012 are yet to be received. These matters have been referred to by the Auditors in their report for the quarter ended 30 June 2012. The audited accounts of TIFERT for the year ended 31 December 2011 were received during the quarter and accordingly adjustments for differences between Management accounts and audited accounts were incorporated in the consolidated results for the quarter ended 30 June 2012)

Consolidated Performance for the quarter ended June 2012

The top-line has increased by 3% to Rs 1854.54 crore driven by higher realizations in fertilizer business & strong growth in non-subsidy business. The company's fertilizer sales volume stood at 4.92 lakh tones. The company has recognized subsidy income included in the Net sales / Income from operations, as per the prevalent Nutrient Based Subsidy Policy (NBS).

The company saw pressure in its operating margins, which fall by 255 bps to 11.4% due to rise in other expenditure by 440 bps to 15.5% of adjusted net sales. As a result, the operating profit decreased by 16% to Rs 210.84 crore.

Other income of the company was down 5% to Rs 18.37 crore. Interest is up by 113% to Rs 53.76 crore on account of higher debt due to increased working capital. Depreciation was up by 19% to Rs 17.01 crore. PBT was down by 31% to Rs 158.44 crore.

The tax outgo has decreased by 38% to Rs 44.22 crore. Effective tax rate was down from 30.9% to 27.9%. The net profit after minority interest has come down by 28% to Rs 115.05 crore due to fall in margin and increased interest cost

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.

Other Developments

During the quarter, pursuant to the exercise of stock options by certain employees under the 'ESOP 2007' scheme, the Company has allotted 116,040 (Quarter ended 30 June 2011: 165,482) equity shares of Rs.1 each at the respective exercise price.

Consequent to the 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, received during the quarter, approvals from the Hon'ble High Court of Andhra Pradesh and other requisite approvals. Accordingly, the Company has fixed the book closure date from 17 July to 23 July 2012 for the issue of debentures.

Valuation

The scrip is currently trading at Rs 243 on the BSE.

The promoter holding in the company is at 63.88%.

Coromandel International: Consolidated Results