Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Q3 FY2022-23 Earnings Presentation
53 slides from Coromandel International's earnings presentation, January 2023
Slide 1: Investor Presentation Q3 FY 22-23
Investor Presentation Q3 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 the 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: 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. 261 billion (December 2022) • Strong credit rating: ‘AAA’ (stable outlook)’ with India Ratings and CRISIL AA+ (positive) with CRISIL • Net cash surplus • ~5000 employees & ~8000 contract sta
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 Q3 Results
[Ze Coromandel = FY 22-23 Q3 Results murugappa
Slide 37: Performance Highlights
Performance Highlights Sales Qty Profit After Net Debt Revenue EBIDTA Book Value Basic EPS to equity ratio (FERT) Tax Q3 2022-23 9.15 Lakh MT ₹ 8,349 Cr ₹ 781 Cr ₹ 527 Cr ₹ 271 ₹ 17.9 0.00 times 12% 38% 21% 64% 44% Q3 2021-22 7.54 Lakh MT ₹ 5,100 Cr ₹ 544 Cr ₹ 382 Cr ₹ 212 ₹ 13 0.00 times As per con
Slide 38: Business Environment – Agriculture Bright Spot
Business Environment – Agriculture Bright Spot MSP Increase – Rabi Crops MSP CY MSP LY Inc • All India cumulative rainfall > normal by 20% (Oct’22 to Dec’22) Wheat 2125 2015 5% • Deficit in rainfall WB (-28%), Odisha (-10%), TG (-4%) Barley 1735 1635 6% Gram 5335 5230 2% • Reservoir storage at 100%
Slide 39: Industry: DAP + Complex Fertilisers: Q3 FY22-23
Industry: DAP + Complex Fertilisers: Q3 FY22-23 Qty in Lakh MT Qty in Lakh MT DAP NPK 38.0 32.9 27.4 29.1 31.0 26.2 21.4 17.5 13.6 11.8 4.7 6.1 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: -13% Production growth: 28% Imports growth: 50% Imports growth: 30% Pr Sale
Slide 40: Industry: DAP + Complex Fertilisers: YTD Dec'22
Industry: DAP + Complex Fertilisers: YTD Dec’22 Qty in Lakh MT Qty in Lakh MT DAP NPK 90.8 92.9 97.2 72.5 76.5 72.8 54.5 43.6 30.6 31.9 21.5 12.9 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: 4% Production growth: 6% Imports growth: 25% Imports growth: 67% Pr Sales
Slide 41: Industry: MOP & Urea: Q3 FY22-23
Industry: MOP & Urea : Q3 FY22-23 Qty in Lakh MT Qty in Lakh MT Urea MOP 98.9 5.4 87.3 71.6 3.9 68.2 3.4 2.7 31.1 19.4 Production Imports Sales Imports Sales LY CY LY CY Production growth: 5% Imports growth: 44% Imports growth: 60% Sales growth: 34% (CIL: 471%) Sales growth: 13% (CIL: 202%) 40
Slide 42: Industry: MOP & Urea: YTD Dec'22
Industry: MOP & Urea : YTD Dec’22 Qty in Lakh MT Qty in Lakh MT Urea MOP 273.3 240.8 15.3 210.9 14.9 14.7 14.1 187.4 59.0 61.0 Production Imports Sales Imports Sales LY CY LY CY Production growth: 13% Imports growth: 3% Imports growth: -3% Sales growth: 13% (CIL: 144%) Sales growth: -4% (CIL: -1%) 4
Slide 43: CIL: Nutrients – Q3
CIL: Nutrients – Q3 Sales in Rs. Crs Volume Summary Vol LMT 7,710 Segment Q3 FY22 Q3 FY23 Growth 7% 72% 4,483 NPK +DAP (Mfd) 7.5 9.2 21% NPK +DAP 0.7 1.4 88% (Imp) Q3 FY22 Q3 FY23 NP/NPKs Total 8.3 10.5 27% Primary Market 13.7% 14.8% PBIT in Rs.Crs Share (NP/NPKs) 697 PoS Market 12.5% 12.7% Share (N
Slide 44: CIL: Nutrients – YTD Dec'22
CIL: Nutrients – YTD Dec’22 Sales in Rs. Crs Volume Summary Vol LMT 22,282 Segment YTD Dec’21 YTD Dec’22 Growth 7% 71% NPK +DAP (Mfd) 24.5 27.1 11% 13,031 NPK +DAP 2.8 3.1 12% (Imp) NP/NPKs Total 27.3 30.2 11% YTD FY22 YTD FY23 Primary Market 16.7% 15.9% PBIT in Rs.Crs Share (NP/NPKs) 2,255 PoS Mark
Slide 45: Subsidy – Q3 FY23
Subsidy – Q3 FY23 Q3: Receipts of Rs. 3,992 Crs. (Rs. 2,296 Crs. LY) Subsidy Outstanding (Rs in Crs) Nutrient rates (Rs/kg) N P K S 21-22 18.79 45.32 10.12 2.37 4,359 22-23 (Kharif) 91.96 72.74 25.31 6.94 22-23 (w.e.f 1 98.02 66.93 23.65 6.12 Oct) 1,336 Q3 FY22 Q3 FY23 44
Slide 46: CIL: Crop Protection – Q3 FY23
CIL: Crop Protection – Q3 FY23 Sales in Rs. Crs 653 5% In Rs. Crs. 622 Market Q3 FY22 Q3 FY23 Growth Q3 FY22 Q3 FY23 Domestic 314 355 13% PBIT in Rs. Crs 93 Exports 308 298 -3% -13% Total 622 653 5% 81 Q3 FY22 Q3 FY23 45 *Before Un-allocable Expenses
Slide 47: CIL: Crop Protection – YTD Dec'22
CIL: Crop Protection – YTD Dec’22 Sales in Rs. Crs 2,020 3% In Rs. Crs. 1,954 Market YTD Dec’21 YTD Dec’22 Growth YTD FY22 YTD FY23 Domestic 1,115 1,259 13% PBIT in Rs. Crs 295 Exports 839 761 -9% -7% Total 1,954 2,020 3% 273 YTD FY22 YTD FY23 46 *Before Un-allocable Expenses
Slide 48: New Product Launches Q3 FY'23
New Product Launches Q3 FY’23 Neem – soil conditioner Abda – Growth booster Azamax (Insecticide) Gardina products – Urban segment – Bio business Speciality Nutrients Business 47
Slide 49: New Product Launches YTD Dec'22
New Product Launches YTD Dec’22 Acumist Calcium – Azamax - Soil conditioner Growth booster Concentrated Liquid Calcium Insecticide Ortain Phendal Plus – Prop-Plus combination Canister super combination Insecticide fungicide Insecticide 48 insecticide
Slide 50: CIL: Consolidated P&L – Q3 & YTD
CIL: Consolidated P&L – Q3 & YTD Rs. Crs Q3 LY YTD LY P&L(Summary) Q3 CY YTD CY Q3 Gr% YTD Gr% 5,100 14,952 Total Income 8,349 24,276 64% 62% 804 2,576 Gross Margin 1,068 3,389 33% 32% 16% 17% GM % 13% 14% 260 805 Fixed Expenses 288 866 11% 7% 544 1,770 EBIDTA 781 2,523 44% 43% 11% 12% EBIDTA Margin
Slide 51: Share Holding Pattern – 31st Dec 2022
Share Holding Pattern – 31st Dec 2022 • Promoters: - EID Parry (India) Ltd (56.3%) Insurance - Individual/HUF (0.6%) Co, 2.4% - Trust/NRI/Others (0.5%) Public &Others, 14.7% • Top Domestic Institutional Holdings: - Kotak Mutual Fund (4.5%) - DSP Mutual Fund (2.4%) FII, 10.3% - UTI Mutual Fund (1.4%)
Slide 52: The 2nd Green Revolution to be powered by superior products, smarter delivery
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 51
Slide 53: 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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