Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Q1 FY2022-23 Earnings Presentation
47 slides from Coromandel International's earnings presentation, 2022
Slide 1: Investor Presentation Q1 FY 22-23
Investor Presentation Q1 FY 22-23 0
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements,” including those relating to general business plans and strategy of Coromandel International Ltd, its future outlook and growth prospects, and future de
Slide 3: Agriculture Industry: The Opportunity Ahead
Agriculture Industry: The Opportunity Ahead 2
Slide 4: Global: Increasing population and wealth to drive up global food consumption
Global: Increasing population and wealth to drive up global food consumption Strong increase in food demand expected Increasing Food consumption Transition countries Near East/North Africa Sub Saharan Africa East Asia population (M tons) Latin America & Carribean Industrial countries South Asia 6,00
Slide 5: Global agri trend: Rising consumption & resource exhaustion
Global agri trend: Rising consumption & resource exhaustion (Natural resource Pressure) Combined with non-ceasing water and land scarcity seen leading to Natural Resource pressure triangle Rising food consumption Growing population Rising overall wealth Less water availability Less arable land Clima
Slide 6: India: A decade of accelerated growth
India: A decade of accelerated growth … GDP US$B 40y 20y 20y 2011 2030 10,000 ~+$450B +$2,200B +$6,000B 8,000 6,000 $8-9T 4,000 2,000 $2.7T $500B $36B 1960 2000 2020 2030 Year Ranking basis GDP, India expected to be 3rd largest economy nominal, US$ B Note: Forecasts by International Monetary Fund, O
Slide 7: India: Unparalleled value creation in Agri sector over next 10 years
India: … with unparalleled value creation in Agri sector over the next 10 years in India Gross value added by Agri sector (cumulative) ₹230 trillion ₹171 2019-29 trillion ₹120 trillion 2008-18 2X 1997-07 India Agri: ~$1.7 trillion to ~$3.3 trillion in 30 years 6 1. USD / INR rate conversion assumed
Slide 8: India: The opportunity and imperative for value creation in Agri sector
India: The opportunity and imperative for value creation in Agri sector over the next 10 years are large… Falling per capita land holding Imbalanced Nutrient Usage 2.5 14 Avg. landholding size (ha) N:P:K Consumption Ratio 12 2 10 1.5 8 1 6 0.5 ideal ratio → 4: 2: 1 4 FY11 → 4.7: 2.3: 1 0 2 1970-71 1
Slide 9: 8 global agri trends: Impact on India
8 global agri trends : Impact on India Rising pressure on Changing Evolution of Farm natural resources dietary preferences farm holdings labor shortages Done Pressure on natural resources Dietary patterns are evolving as Declining avg. farm holding Decreasing labour is driving greater push demand fo
Slide 10: Trends opening up significant opportunities for Agri cos
Trends opening up significant opportunities for Agri cos Implications • Balanced plant nutrition - Improved Ag input penetration • Specialized nutrients - F&V, pulses with changing dietary preferences • Precision farming / ag tech - holistic agri solution of the future • Micro-irrigation - Agri-inpu
Slide 11: Government policy focus positive for value creation in Agri sector
Government policy focus positive for value creation in Agri sector • Doubling of farmer income: Productivity, Price Realization – Productivity: Soil Health Cards, customized fertilizer – Realization: Direct Income Support - Centre & State initiatives, Agri Insurance, Electronic Agriculture Markets,
Slide 12: Coromandel: Transforming Indian Agriculture
Coromandel: Transforming Indian Agriculture 11
Slide 13: Coromandel: Strong Governance Structure
Coromandel: Strong Governance Structure Eminent Board Professional Management Engaged employees 12
Slide 14: Coromandel: a strong, responsible company
Coromandel: a strong, responsible company Key Facts : • Turnover: Rs. 192 billion (FY21-22) • Market Cap: Rs. 280 billion (June 2022) • Strong credit rating: ‘AA +’ (Positive outlook)’ with CRISIL India • Zero long term debt • ~5000 employees & ~8000 contract staff COST EFFECTIVE BRINGING PROSPERITY
Slide 15: Coromandel: India footprint
Coromandel: India footprint India’s largest private sector Phosphatic 17 manufacturing locations Fertilizer company Jammu Pioneers & market leaders ~750 Retail centres in Specialty Nutrients India’s largest Single Super Phosphate (SSP) Raebareli ~20,000+ dealers company Kota 5th largest Crop Udaipur
Slide 16: A 'Farmer First' winning business model
Farmer First Seeds Portfolio Farm implements Specialty Crop Aqua/Vet Feed Fertilizer Organic Biologicals Nutrients Protection Traded Products Rural Retail Ag Tech Farm Services Testing services (Soil, Water, Tissue) Advisory Financing & Insurance A 'Farmer First' winning business model Business Wise
Slide 17: Fertilizer: Opportunity to address nutrient imbalance
Fertilizer: Opportunity to address nutrient imbalance Widespread Soil Deficiency Nitrogen Phosphorus Potassium Nitrogen Zinc xxx Nitrogen Iron xxx Potassium Huge opportunity xxx xxx Copper Over 50% Over 50% Sulphur exists for Fertilizer 20% to 50% 20% to 50% Less than 20% Less than 20% Punjab Punjab
Slide 18: Fertilizer: Positive Policy Measures
Fertilizer: Positive Policy Measures Soil Health Cards … Direct Benefit Transfer (DBT) JAM Trinity for Direct Transfers Boosting investments • Scheme started in 2015 by • In 2018, DBT implemented • Rural India high on “JAM” • Self sufficiency in Urea— Government of India pan India coverage—Jan Dhan
Slide 19: Coromandel Fertilizer: Highlights
Coromandel Fertilizer: Highlights Differentiated Product Offering Efficient Manufacturing Winning in Markets 34% 4.5 17.9% unique MT Market share capacity share (NPK+SSP) 17.90% 16.30% 15.80% 15.70% 15.30% Mil tons Mil tons FY 18 FY 19 FY 20 FY 21 FY 22 • 13 products catering to farmer needs • Stron
Slide 20: Crop Protection: Market opportunity large
Crop Protection: Market opportunity large India … massive potential exists Exports slated to grow at 9% CAGR India – Consumption lowest in world Bn USD Pesticide consumption 3.2 (kg/hectare) 20 17.0 2.0 India is well positioned to 13.0 12.0 10 7.0 7.0 1.1 tap the huge multi-year 0.6 exports opportun
Slide 21: Coromandel Crop Protection: Highlights
Coromandel Crop Protection: Highlights Key Strengths Product Offering Large 10,000+ • 1000+ product registrations globally resulting in geographically diversified Crop protection dealers sales company in India • Focus on new products/combinations development - Rich product pipeline Presence across •
Slide 22: Coromandel Biologicals: Highlights
Coromandel Biologicals: Highlights Key Strengths New Product development • Rich product pipeline • Strong R&D capabilities: Research on Azadirachtin from plant extracts, microbial bio pesticides • Tie-ups with Indian and International CROs No.1 60% Azadirachtin Export share Manufacturing • Manufactu
Slide 23: Specialty Nutrients: Market opportunity large
Specialty Nutrients: Market opportunity large – micro irrigation, secondary & micro nutrients Potential for Specialty Nutrients business to capture market as micro-irrigation coverage expands Current Micro Irrigation coverage in India at 6% (US: 55%, Brazil: 52%, China: 10%) Potential: 69 mil Ha Cur
Slide 24: Coromandel Specialty Nutrients: Highlights
Coromandel Specialty Nutrients: Highlights Key Strengths Market Activation Product Offering • Focus on Crop specific nutrient & liquid leaders Tie-ups with Drip Irrigation, contract fertilizer solutions targeting Cereals, pulses, cotton and horticulture crops In WSF & Sulphur farming, Agri • Exclusi
Slide 25: Coromandel Retail: Comprehensive Agri Solutions
Coromandel Retail: Comprehensive Agri Solutions Key Strengths ~750 ONE Key achievements • India's largest agri retail chain Retail Centers Stop Shop for • Strong brand equity providing customer Agriculture value proposition of Quality, Trust & Significant needs farm Advice presence in AP, TG, KN Con
Slide 26: Coromandel Organic: Highlights
Coromandel Organic: Highlights Key Strengths Product Offering No.1 • Product portfolio: – Soil health (City compost) Organic fertilizer – Soil nutrition (Kash, PROM, CMS, Nrich) – Soil amendment (Gypsum) marketer in India Growth drivers for future Sales & Marketing / Activation • Regulatory push • L
Slide 27: Coromandel AgTech: Successful forays
Coromandel AgTech: Successful forays Coromandel has successfully forayed into Agtech by carrying out pilot trials using Drones Real time crop diagnostics quickly highlighting stressed regions needing intervention made possible Crop advisory provided to farmers based crop diagnostics results Timely i
Slide 28: Coromandel: Leveraging Technology for Farmer Prosperity
Coromandel: Leveraging Technology for Farmer Prosperity ~50,000 soil tests carried out annually Farm advisory through Scientists’ Gromor Nutrient Manager based panel nutrients recommendations Hiring Farm machinery through Custom Developing superior delivery E kiosks for improving reach & product Hir
Slide 29: Coromandel: Focus on Sustainable development
Coromandel: Focus on Sustainable development Bird’s Paradise • Bird’s Paradise was established at Kakinada plant is home to 100+ species • Recognized by UNDP ‘Turning a Factory into a Bird Sanctuary’ • Extensive coverage by Discovery Green Belt ▪ Converting Phospho gypsum heaps into green belt ▪ 1st
Slide 30: Coromandel CSR: Doing it responsibly
Coromandel CSR: Doing it responsibly Healthcare Initiatives Girl Child Education Scheme Community Development • Coro Medical Centres have • Girl Child Education Scheme has • Community development touched 80K+ beneficiaries touched 16K+ children and initiatives focussed on creating annually counting
Slide 31: Coromandel: Converting farmer insights into farmer prosperity
Coromandel: Converting farmer insights into farmer prosperity Direct connect with farmers • Deep insight on farmer preferences, cropping patterns, pest incidence, area Marketing & Activation under cultivation, hyperlocal trends • Educating, disseminating best-in-class package of practices, driving c
Slide 32: Coromandel: Track record of sustained financial performance
Coromandel: Track record of sustained financial performance Revenue* From Operations EBITDA (₹ Crores) Profit after Taxes (₹ Crores) (₹ Crores) 1,528 2,154 1,329 19,111 1,990 1,732 1,065 14,182 1,420 13,225 13,137 720 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 *Fertilizer revenue su
Slide 33: Coromandel – Holistic farm solutions provider
Coromandel – Holistic farm solutions provider… …with unique business model driving farm prosperity Farmer First Seeds Portfolio Farm implements Specialty Crop Aqua/Vet Feed Fertilizer Organic Biologicals Nutrients Protection Traded Products Rural Retail Ag Tech Farm Services Testing services (Soil,
Slide 34: Eight key elements of our Strategy
Accelerate the innovation agenda 1 Strengthen Build power 8 2 capabilities brands Eight key elements of our Strategy to Partnering with Government on 7 3 Reinforce consumer capture the India Agri reforms strongholds Ag opportunity & deliver consistent value… Build stronger processes with focus 6 4 L
Slide 35: Coromandel Value Proposition
Coromandel Value Proposition Unparalleled value creation Coromandel has a strong opportunity in India track record of delivering agriculture space consistent value • India agriculture opportunity • Top quartile TSR performer over large; GV to reach INR 230 the last 3 years (in the S&P BSE trillion b
Slide 36: FY 22-23 Q1 Results
FY 22-23 Q1 Results 35
Slide 37: Performance Highlights
Performance Highlights Sales Qty Profit After Net Debt Revenue EBIDTA Book Value Basic EPS to equity ratio (FERT) Tax Q1 2022-23 7.26 Lakh MT ₹5,729 Cr ₹ 687 Cr ₹ 499 Cr ₹ 249 ₹17 0.00 times 41% 12% 48% -6% 56% Q1 2021-22 7.77 Lakh MT ₹ 3,664 Cr ₹ 486 Cr ₹ 338 Cr ₹202 ₹ 11.5 0.00 times As per consol
Slide 38: Environment – Rainfall and Agriculture
Environment – Rainfall and Agriculture • Kharif MSP announced: ~5% increase • Q1 Agri exports: +18% • Led by Rice, Other Cereals, Coffee, Marine, Meat • Kharif sowing: At last year levels Crop sowing (15th Jul) - in lakh ha • Lower paddy acreage LY CY % chg • Favourable crop prices – above MSP (Pvt
Slide 39: Industry: DAP + Complex Fertilisers: Q1 FY22-23
Industry: DAP + Complex Fertilisers: Q1 FY22-23 Qty in Lakh MT Qty in Lakh MT DAP NPK 32 25 21 21 22 19 14 11 7 8 8 4 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: 36% Production growth: -1% Imports growth: -41% Imports growth: 68% Sales growth: 70% Sales growth: -
Slide 40: CIL: Nutrients – Q1
CIL: Nutrients – Q1 Sales in Rs.Crs Volume Summary Vol LMT 5111 Segment Q1 FY22 Q1 FY23 Growth 7% 66% 3070 NPK +DAP (Mfd) 7.67 6.88 -10% NPK +DAP 0.10 0.39 286% (Imp) NP/NPKs Total 7.77 7.26 -6% Q1 FY22 Q1 FY23 Primary Market 17.8% 13.5% PBIT in Rs.Crs Share (NP/NPKs) 602 PoS Market 15.8% 21.8% Shar
Slide 41: Subsidy – Q1 FY23
Subsidy – Q1 FY23 Q1: Receipts of Rs. 136 Crs. (Rs. 493 Crs. LY) Subsidy Outstanding (Rs in Crs) Nutrient rates (Rs/kg) 2731 N P K S 21-22 18.789 45.323 10.116 2.374 22-23 91.960 72.740 25.310 6.940 1149 Subsidy – Kharif 2022 Subsidy approved by Cabinet for the NBS Kharif-2022 Q1 FY22 Q1 FY23 (from
Slide 42: CIL: Crop Protection – Q1
CIL: Crop Protection – Q1 Sales in Rs.Crs 661 5% In Rs. Crs. 631 Market Q1 FY22 Q1 FY23 Growth Domestic 398 455 14% Q1 FY22 Q1 FY23 PBIT in Rs. Crs 87 Exports 233 206 -12% 5% Total 631 661 5% 82 Q1 FY22 Q1 FY23 41 *Before Un-allocable Expenses
Slide 43: New Product Launches Q1 FY23
New Product Launches Q1 FY23 Ortain super – combination insecticide Pendal Plus – Insecticide Prop-Plus – combination fungicide Canister - Insecticide CPC – 4 New products 42
Slide 44: CIL: Consolidated P&L – Q1
CIL: Consolidated P&L – Q1 Rs. Crs Q1 LY P&L(Summary) Q1 CY Gr% Q1 3,664 Revenue from Ops 5,729 56% 753 Gross Margin 960 27% 21% GM % 17% 267 Other Expenses 273 486 EBIDTA 687 41% 13% EBIDTA Margin % 12% 42 Depreciation 45 12 Interest Income 22 448 PBT 669 49% 12% PBT % 12% 338 PAT 499 48% 9% PAT %
Slide 45: Share Holding Pattern – 30th Jun 2022
Share Holding Pattern – 30th Jun 2022 • Promoters: - EID Parry - Individual/HUF - Trust/Corporate Bodies: Public &Others, 14.90% • Top Domestic Institutional Holdings: Insurance - Kotak Mutual Fund Co, 4.30% - DSP Mutual Fund FII, 8.00% - UTI Mutual Fund - SBI Promotors, 57.50% - Axis Mutual fund, •
Slide 46: The 1st and 2nd Green Revolution
The 1st Green Revolution The 2nd Green Revolution to be powered by superior driven by Agri-inputs products, smarter delivery mechanisms & agri-tech Achieving self-sufficiency Achieving Income Security and Farm Sustainability in food grains 45
Slide 47: Thank You
Thank You Corporate Office: For Investor Relations, contact: Coromandel International Ltd., Ms Jayashree Satagopan, CFO Coromandel House, 1-2-10, SP Road JayashreeSatagopan@coromandel.murugappa.com Secunderabad, Telangana 500003 Mr Mayur Gangwal, General Manager GangwalM@coromandel.murugappa.com Pho
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