Coromandel International Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nirav Jimudia - Anvil Share and Stock Broking Private Limited - Analyst : Ma'am, I have two questions to ask. So one on the agro side. Ma'am, if you can share what was the volume growth for Mancozeb in nine months of FY25 vis-a-vis of nine months of last year as well as also if you can share that like recently, we have seen the prices of Mancozeb in the international market moving up. So how much of that is captured in Q3? And how much it is still left to be captured going forward?

Question: Nirav Jimudia - Anvil Share and Stock Broking Private Limited - Analyst : Fine, fine, fine. Sir, also, if you can share like last year, we produced close to around 70,000 tonnes of technicals out of over 90,000 tonnes of production capacity. So how are we looking FY25 and FY26 in terms of the production of technicals, given the kind of newer products we have launched on the formulation side? This along with if you can combine the volume data growth for Mancozeb, that would be helpful.

Question: Nirav Jimudia - Anvil Share and Stock Broking Private Limited - Analyst : Got it, got it, sir. Sir, second question is on the SSP side. So if you can share your thoughts here because last year was bad in terms of the SSP. But given the kind of price increases and the shortages, what we have seen on the DAP side, possibly SSP being a good substitute, how do you see the volume growth for SSP in FY25 and FY26? And also, if you can share like what sort of margins per tonne we are currently making on the SSP side? Because in one of the interactions earlier, ma'am mentioned that like we were anywhere between INR1,500 to INR2,500 a tonne of SSP margin. So if you can share your thoughts here, that would be very helpful.

Question: Prashant Biyani - Elara Securities (India) Private Limited - Analyst : Congratulations on great set of numbers. Sir, POS volume this quarter has been very strong across India in both urea and complex. What is driving this? And would it mean that Q4 dispatches should again be seeing double-digit growth for us?

Question: Prashant Biyani - Elara Securities (India) Private Limited - Analyst : Sure. Sir, for FY26, what kind of volume growth are you looking at? And it will be contributed by -- incremental volumes would be contributed through manufacturing or trading?

Question: Prashant Biyani - Elara Securities (India) Private Limited - Analyst : Right. Sir, for this quarter, I think there is a dip in non-subsidy non-CP EBITDA, the segment which comprises of spec chem, organic nutrients, retail and others. Is the reading right? And if yes, what is driving this decline? And I was a bit confused because in your initial commentary, you told that specialty nutrients business was good, but this non-subsidy non-CP EBITDA is showing some decline. If you can confirm that?

Question: Arjun Khanna - Kotak Mahindra Asset Management Company Limited - Analyst : Congratulations on a great set of numbers. The first question is in terms of supply chain. So we are setting up a new granulation trains. So we had acquired a stake in Baobab Mining. Any other such acquisitions on the anvil? We had talked about securing rock phosphate. We haven't seen any such acquisitions or such tie-ups post this one. So I would like to hear your comments on the same.

Question: Arjun Khanna - Kotak Mahindra Asset Management Company Limited - Analyst : Sure. That's helpful. And what would -- and at 5,00,000, would that entity be profitable?

Question: Arjun Khanna - Kotak Mahindra Asset Management Company Limited - Analyst : Sure. Very helpful, sir. Sir, the second question is on the retail piece. You also did allude to it. What would the turnover be of this business, say, in the third quarter and in nine months? And in terms of year-on-year, how are we looking at scaling this up going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 9:00AM, CORF.NS - Q3 2025 Coromandel International Ltd Earnings Call

Question: Arjun Khanna - Kotak Mahindra Asset Management Company Limited - Analyst : Sure. Sir, what would be the number of stores as on December 31? And would it be PBT positive as a whole?

Question: Arjun Khanna - Kotak Mahindra Asset Management Company Limited - Analyst : 810?

Question: Arjun Khanna - Kotak Mahindra Asset Management Company Limited - Analyst : And you said we are looking at doubling it over two years to maybe 1,500 plus by FY27?

Question: Somaiah Valliyappan - Spark Institutional Equities Private Limited - Analyst : The first question is on the volumes that we have done, 11% growth. Could you help us understand how much was contributed from our core region? And how did we benefit from the northern market expansion? And also, if you can give some color on the northern market expansion, which are the regions and how you are planning it for the next one year?

Question: Somaiah Valliyappan - Spark Institutional Equities Private Limited - Analyst : Got it, sir. Sir, also, could you give some color on the global phos acid market, how you are seeing in terms of supply-demand dynamics and also on rock? Is this a year where there is a good amount of supply and the demand is kind of normalizing compared to last year? Or you see still things to be on the tighter front because phos acid prices have kind of slightly gone up now. Now we are at INR1,050-odd levels. So just wanted to understand your thoughts on the supply-demand dynamics.

Question: Somaiah Valliyappan - Spark Institutional Equities Private Limited - Analyst : Got it, sir. Sir, one follow-up on our margin outlook --

Question: Ankur Periwal - Axis Capital Limited - Analyst : Congratulations on a good set of number. First question on the fertilizer margin outlook. We had highlighted during our management interaction earlier around 40%-odd jump in overall fertilizer margin. Just wanted to understand the time lines for it and whether the SSP -- change in SSP portfolio, the differentiated products that we are making is a top-up to that 40% jump or is including in that guidance that you had given earlier?

Question: Ankur Periwal - Axis Capital Limited - Analyst : Sure, sir. And just secondly, your thoughts on the Crop Protection business, especially on the export side. The pricing-led competition that we had been seeing earlier and given that we are now -- are we now expanding into newer geographies as well? Or the growth focus from crop protection perspective will be largely on India as a market in terms of in-license and combination products and export will be taking a back seat? Your thoughts there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 9:00AM, CORF.NS - Q3 2025 Coromandel International Ltd Earnings Call

Question: Ramesh Sankaranarayanan - Nirmal Bang Institutional Equities - Analyst : Congratulations. So if you look at the volume growth for the industry in exports, numbers range 30%, 40%, 50%. So in terms of the volume growth expectation in exports next year on this base, what is a realistic assessment of volume growth possible for the industry in your company?

Question: Ramesh Sankaranarayanan - Nirmal Bang Institutional Equities - Analyst : Okay. That is fair enough. Raghuram Devarakonda - Coromandel International Ltd - Executive Director - Crop Protection, Bio Products and Retail Business, Whole-time Director There is a shift. Yes, there is a shift. So the thrust is more on formulations, yes.

Question: Ramesh Sankaranarayanan - Nirmal Bang Institutional Equities - Analyst : Okay. One last thought on the minority interest accounted in the consolidated results, I presume it's mostly based on your Dare Ventures and your drone subsidiary. So when do you think the drone and Dare Ventures subsidiary impact on your consolidated numbers turn positive?

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : Congratulations on good set of numbers. Sankar, if you can give a little more color, say, where we are talking of, say, reaching SSP 1 million tonnes. So what kind of a blended will be, let's say, out of that mixture of SSP and urea? And if you can also share how the profitability part, how is -- is it with this mixture will be having higher than the SSP and/or sitting somewhere in what kind of a range?

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : How much? Sorry, can you repeat?

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : This blended margin, how much you said? Sorry, I missed it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 9:00AM, CORF.NS - Q3 2025 Coromandel International Ltd Earnings Call

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : Okay. And secondly, if you can give a little more color on our nutrient business. So what is the size? And how do we see with this expansion in geography also?

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : Special nutrients. Special, SND.

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : So currently, what is the size and profitability? Is that fair understanding, earlier, we were talking of around 20% kind of EBITDA margin. So --

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : And what is current size?

Question: Bharat Sheth - Quest Investment Advisor Pvt. Ltd - Analyst : And currently, how -- what is the size?

Question: Vignesh Iyer - Sequent Investments - Analyst : My first question was on the line of sulfuric acid, due to backward integration, can you tell me how much did we save instead of, say, importing the same in this quarter as well as quarter 2? And second question is, how has the price of sulfuric acid panned out in, let's say, last four to five months? I mean if you could quantify like in January, how much it has increased as compared to maybe September or October level?

Question: Vignesh Iyer - Sequent Investments - Analyst : That is your Vizag and Ennore plant together, right?