Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Q4 FY2023 Earnings Presentation
52 slides from Coromandel International's earnings presentation, 2023
Slide 1: Investor Presentation Q4 FY 23
Investor Presentation Q4 FY 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: 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: Coromandel: Transforming Indian Agriculture
Coromandel: Transforming Indian Agriculture 10
Slide 12: Coromandel: Strong Governance Structure
Coromandel: Strong Governance Structure Eminent Board Professional Management Engaged employees 11
Slide 13: Coromandel: a strong, responsible company
Coromandel: a strong, responsible company Key Facts : • Turnover: Rs. 298 billion (FY23) • Market Cap: Rs. 258 billion (31st March 2023) • Strong credit rating: CRISIL Ratings: Long Term - CRISIL AAA/Stable; Short Term - CRISIL A1+ • Net cash surplus • ~5000 employees & ~8000 contract staff COST EFF
Slide 14: 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 15: 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 16: 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 17: 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 18: Coromandel Fertilizer: Highlights
Coromandel Fertilizer: Highlights Differentiated Product Offering Efficient Manufacturing Winning in Markets 36% 4.5 15.4% unique MT Market share capacity share (NPK+SSP) Mil tons Mil tons 3.4 20.0% 110% 17.9% 1.4 50% 93% 16.3% 15.7% 36% 85% 86% 82% 83% 15.3% 15.4% 37% 39% 3.2 90% 1.3 36% 40% 15.0%
Slide 19: Crop Protection: Market opportunity large
Crop Protection: Market opportunity large India … massive potential exists Exports slated to grow at 10% CAGR India – Consumption lowest in world Bn USD Pesticide consumption (kg/hectare) 4.8 20 17.0 India is well positioned to 13.0 12.0 3.2 10 7.0 7.0 tap the huge multi-year 2 exports opportunity i
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: Coromandel: Track record of sustained financial performance
Coromandel: Track record of sustained financial performance Revenue* From Operations EBITDA Profit after Taxes (₹ Crores) (₹ Crores) (₹ Crores) 2,013 29,628 2,902 1,528 2,154 1,329 19,111 1,990 1,732 1,065 13,137 14,182 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 *Fertilizer revenue
Slide 32: Holistic farm solutions provider with unique business model
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 33: 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 34: 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 35: FY 23 Q4 & Full Year Results
FY 23 Q4 & Full Year Results 34
Slide 36: Performance Highlights
Performance Highlights Sales Qty* Profit After Net Debt Total Income EBITDA Book Value Basic EPS (FERT) Tax to equity ratio FY 22-23 32.46 Lakh MT ₹ 29,799 Cr ₹ 2,926 Cr ₹ 2,037 Cr ₹ 270 ₹ 69 0.00 times 8.5% 55% 36% 34% 24% 33% FY21-22 29.92 Lakh MT ₹ 19,255 Cr ₹ 2,150 Cr ₹ 1,525 Cr ₹ 217 ₹ 52 0.00
Slide 37: Business Environment – Agriculture
Business Environment – Agriculture Skymet Forecasts – June to Sept, 2023 Global • Likely extension of Russia-Ukraine pact for supplies of Grains & Fertilisers • Commodities prices falling amid growth concerns • Crude prices expected to increase based on output cut announced by OPEC+ India • Normal M
Slide 38: Industry: DAP + Complex Fertilisers: Q4 FY23
Industry: DAP + Complex Fertilisers: Q4 FY23 Qty in Lakh MT Qty in Lakh MT DAP NPK 22.5 23.9 22.2 14.5 17.0 11.6 11.7 12.7 11.6 15.0 6.7 0.4 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: 1% Production growth: 48% Imports growth: -12% Imports growth: +ve% Pr Sales g
Slide 39: Industry: DAP + Complex Fertilisers: FY 23
Industry: DAP + Complex Fertilisers: FY 23 Qty in Lakh MT Qty in Lakh MT DAP NPK 119.7 116.8 107.8 98.0 84.4 88.0 65.0 54.0 42.0 43.0 29.0 14.0 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: 2% Production growth: 11% Imports growth: 20% Imports growth: 107% Pr Sales
Slide 40: Industry: MOP & Urea: Q4 FY23
Industry: MOP & Urea : Q4 FY23 Qty in Lakh MT Qty in Lakh MT Urea MOP 5.6 96.2 91.2 74.0 63.3 2.9 2.7 32.3 1.1 13.8 Production Imports Sales Imports Sales LY CY LY CY Production growth: 17% Imports growth: -80% Imports growth: -57% Sales growth: -7% Sales growth: 5% (CIL: 140%) 39
Slide 41: Industry: MOP & Urea: FY 23
Industry: MOP & Urea : FY 23 Qty in Lakh MT Qty in Lakh MT Urea MOP 369.5 332.0 17.6 16.8 284.9 15.9 16.0 250.7 91.4 74.8 Production Imports Sales Imports Sales LY CY LY CY Production growth: 14% Imports growth: -18% Imports growth: 1% Sales growth: 11% (CIL: 143%) Sales growth: -5% (CIL: +2%) 40
Slide 42: CIL: Nutrients – Q4 FY23
CIL: Nutrients – Q4 FY23 Sales in Rs. Crs Volume Summary Vol LMT Segment Q4 FY22 Q4 FY23 Growth 7% 4,881 33% 3,683 NPK +DAP (Mfd) 5.43 5.38 -1% NPK +DAP 0.53 0.87 64% (Imp) NP/NPKs Total 5.96 6.25 5% Q4 FY22 Q4 FY23 Primary Market 20.8% 13.5% PBIT in Rs. Crs Share (NP/NPKs) 350 339 340 PoS Market 33
Slide 43: CIL: Nutrients – FY23
CIL: Nutrients – FY23 Sales in Rs. Crs Volume Summary Vol LMT 27,162 Segment FY22 FY23 Growth 7% 63% 16,714 NPK +DAP 29.92 32.46 8% (Mfd) NPK +DAP 3.3 4 21% (Imp) FY22 FY23 NP/NPKs Total 33.22 36.45 10% Primary Market PBIT in Rs. Crs Share 17.3% 15.4% (NP/NPKs) 2,594 PoS Market 46% Share 16.1 16.7%
Slide 44: Subsidy – FY23
Subsidy – FY23 Q4: Receipts of Rs. 4,483 Crs. (Rs. 2,618 Crs. LY) FY23: Receipts of Rs. Rs. 12,477 Crs. (Rs. 7,077 Crs. LY) Subsidy Outstanding (Rs in Crs) Nutrient rates (Rs/kg) 2,378 N P K S 21-22 18.79 45.32 10.12 2.37 22-23 (Kharif) 91.96 72.74 25.31 6.94 294 22-23 (w.e.f 1 98.02 66.93 23.65 6.1
Slide 45: CIL: Crop Protection – Q4 FY23
CIL: Crop Protection – Q4 FY23 Sales in Rs. Crs 650 615 600 11% 556 550 In Rs. Crs. 500 Market Q4 FY22 Q4 FY23 Growth 450 400 Domestic 371 368 -0.8% Q4 FY22 Q4 FY23 PBIT in Rs. Crs Exports 185 247 33.5% 93 73 26% Total 556 615 11% Q4 FY22 Q4 FY23 Note: Sales & PBIT(before un-allocable exp.) 44 is gi
Slide 46: CIL: Crop Protection – FY23
CIL: Crop Protection – FY23 Sales in Rs. Crs 2,700 2,636 2,600 5% 2,511 2,500 In Rs. Crs. 2,400 2,300 Market FY22 FY23 Growth 2,200 2,100 2,000 Domestic 1,585 1,744 10% FY22 FY23 PBIT in Rs. Crs Exports 926 892 -3.7% 380 368 366 370 360 -1% Total 2,511 2,636 5% 350 340 330 320 310 300 FY22 FY23 Note
Slide 47: New Product Launches Q4 FY’23
New Product Launches Q4 FY’23 Two Technicals Commercialized CLAREO 1. Azoxystrobin Herbicide 2. Cyproconazole 46
Slide 48: New Product Launches FY 23
New Product Launches FY 23 Acumist Calcium – Azamax - Soil conditioner Growth booster Concentrated Liquid Calcium Insecticide Ortain Phendal Plus – Prop-Plus combination Canister CLAREO super combination Insecticide fungicide Insecticide Herbicide 47 insecticide
Slide 49: CIL: Consolidated P&L – Q4 & FY 23
CIL: Consolidated P&L – Q4 & FY 23 Rs. Crs Q4 LY FY 21-22 P&L(Summary) Q4 CY FY 22-23 Q4 Gr% YTD Gr% 4,227 19,111 Revenue from Operations 5,476 29,628 30% 55% 669 3,227 Gross Margin 761 4,135 14% 28% 16% 17% GM % 14% 14% 289 1,077 Fixed Expenses 358 1,209 24% 12% 380 2,150 EBITDA 403 2,926 6% 36%
Slide 50: Share Holding Pattern – 31st March 2023
Share Holding Pattern – 31st March 2023 • Promoters: - EID Parry (India) Ltd (56.3%) Insurance - Individual/HUF (0.6%) Co, 2.6% - Trust/NRI/Others (0.5%) Public &Others, 14.8% • Top Domestic Institutional Holdings: - Kotak Mutual Fund (4.6%) - DSP Mutual Fund (2.8%) FII, 9.4% - UTI Mutual Fund (1.5%
Slide 51: The 2nd Green Revolution to be powered by superior products
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 50
Slide 52: Thank You
Thank You For Investor Relations, contact: Corporate Office: Coromandel International Ltd., Ms Jayashree Satagopan, CFO Olympia Terraces, 15B(SP), jayashreesatagopan@coromandel.murugappa.com SIDCO Industrial Estate, Guindy, Chennai – 600032, Tamil Nadu. Mr Shanky Bhola, DGM Finance shankybhola@corom
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