Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Q2 FY2021-22 Earnings Presentation
55 slides from Coromandel International's earnings presentation, 2021
Slide 1: Investor Presentation Q2 FY2122
Investor Presentation Q2 FY2122 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: 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: Murugappa Group: Coromandel flagship company of the group
Murugappa Group: Coromandel flagship company of the group Workforce Businesses Revenue Market Cap Locations 29; 53,000+ 10 listed 417 Bn INR 1605* Bn INR 90 entities Coromandel Agriculture EID Parry CUMI Engineering Tubes Investment Chola Finance Financial Services Chola MS 12 120 years of trust *As
Slide 14: Coromandel: Strong Governance Structure
Coromandel: Strong Governance Structure Eminent Board Professional Management Engaged employees 13
Slide 15: Coromandel: a strong, responsible company
Coromandel: a strong, responsible company Key Facts : • Turnover: Rs. 142 billion (FY20-21) • Market Cap: Rs. 237 billion (Oct 2021) • Strong credit rating: ‘AA +’ (Positive outlook)’ with CRISIL India • Zero long term debt • ~5000 employees & ~8000 contract staff COST EFFECTIVE BRINGING PROSPERITY
Slide 16: Coromandel: India footprint
Coromandel: India footprint India’s largest private sector Phosphatic 16 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 17: 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 18: 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 19: 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 20: Coromandel Fertilizer: Highlights
Coromandel Fertilizer: Highlights Differentiated Product Offering Efficient Manufacturing Winning in Markets 39% 4.5 15.3% unique MT Market share capacity share (NPK+SSP) 3.5 86% 100% 16.3% 39% 81% 83% 15.8% 15.7% 15.3% 40 45% 82%* 14.7% 3.0 20 37% 37% 36% 40% 68% 80% 2.5 00 32% 35% 2.0 60% 80 30% 1
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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; fo
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Coromandel: Track record of sustained financial performance
Coromandel: Track record of sustained financial performance EBITDA Profit after Taxes Revenue* From Operations (₹ Crores) (₹ Crores) (₹ Crores) 1,312 2,003 1,059 14,163 1,727 13,204 13,117 1,450 10,943 1,305 685 714 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 *Fertilizer revenue subj
Slide 34: 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 35: 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 36: 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 37: CIL: Q2 Result Update
CIL: Q2 Result Update Rs. Crs Parameter Turnover EBITDA PBT PAT EBITDA% Q2 21-22 6147 743 701 519 12% % Growth 33% -12% -11% -12% Q2 20-21 4611 843 784 587 18% Strong Revenue Growth, Stressed Margin (High RM Prices) 36
Slide 38: Environment: Global Shortage Economy
Environment: Global Shortage Economy Economic Revival post Covid 19 in CY21 – Global: 5.9% - Surge in demand – India: 9.5% - Fastest growing Big Economy Global Supply Imbalance – Across all commodities Reduced Investments in Conventional Fossil fuels Dependence on China: 15% global exports share Mov
Slide 39: Environment: Strong Demand
Environment: Strong Demand SW Monsoon: 1st Jun-30th Sep South West Monsoon at -1% LPA (30 Sep) • Strong Performance in addressable markets: – TG +39%, AP +19%, Mah +19%, WB: +15%, Kar:+3% – Odisha: -9% • Sep Revival in Central & North: – MP: 0%, Guj: 0% – Raj: +17%, Punjab: -7%, Har: +30%, UP: -5% H
Slide 40: Environment: Strong Demand Agriculture
Environment: Strong Demand Agriculture All India Kharif – Sowing & Output status Sowing (30 Sep) - lakh ha Output Est - mil ton 2020 2021 % inc 2020 2021 % inc • All India Crop sowings: Marginally up from last year Rice 409 423 3% 104 107 3% - Except Cotton and Coarse Cereals Pulse 139 142 2% 9 9 9%
Slide 41: Environment: Govt Policies
Environment: Govt Policies • GDP Growth: 20.1% (Q1), • FY Estimate of 9.5% (IMF) - Investment upgrade by Moody (Stable from Negative) • Agriculture continues to do well - GVA at +4.5% (Q1), +3.5% (LY-Q1) • PM Kisan 2nd Instalment: Rs. 19,500 Crs. to farmers • Imports Substitution of Edible oil - Oil
Slide 42: Environment: Govt Policies
Environment: Govt Policies • Fertilizer: - Rollover of NBS rates for H2 - Additional Subsidy of Rs. 28,655 cr sanctioned - Special Package: DAP (Rs 438/ bag) & Select NPKs (Rs. 100/Bag) - Pricing Cap: DAP Rs. 1,200/Bag, NPK (Select Grades) Rs.1,470/Bag - Move to Balance Nutrition: Use of NPK and SSP
Slide 43: Phosphatic Industry: Q2 FY21-22
Phosphatic Industry: Q2 FY21-22 Qty in Lakh MT Qty in Lakh MT DAP NPK 37.9 35.0 33.4 29.9 26.6 27.6 23.1 9.8 11.7 8.9 5.8 3.7 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: -9% Production growth: 8% Imports growth: -56% Imports growth: -36% Pr Sales growth: -39% Pr
Slide 44: Phosphatic Industry: H1 FY21-22
Phosphatic Industry: H1 FY21-22 Qty in Lakh MT Qty in Lakh MT DAP NPK 64.1 59.4 58.5 51.1 46.7 41.9 41.7 25.9 19.2 17.0 10.3 8.1 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: -11% Production growth: 9% Imports growth: -8% Imports growth: -21% Pr Sales growth: -35%
Slide 45: CIL: Nutrients – Q2
CIL: Nutrients – Q2 Sales in Rs .Crs Volume Summary Vol LMT 5503 Segment Q2 FY21 Q2 FY22 Growth 4000 38% 7% NPK +DAP (Mfd) 9.54 9.27 -3% NPK +DAP 1.65 1.95 18% (Imp) Q2 FY21 Q2 FY22 NP/NPKs Total 9.42 9.40 0% PBIT in Rs .Crs Primary Market 15.2% 19.6% Share (NP/NPKs) 706 PoS Market 19.7% 20.4% Share
Slide 46: CIL: Nutrients – H1
CIL: Nutrients – H1 Sales in Rs .Crs 8563 Volume Summary Vol LMT 6807 Segment H1 FY21 H1 FY22 Growth 26% 7% NPK +DAP (Mfd) 17.18 16.95 -1% NPK +DAP 2.28 2.05 -11% (Imp) NP/NPKs Total 15.75 16.24 3% H1 FY21 H1 FY22 PBIT in Rs .Crs Primary Market 15.8% 18.9% Share (NP/NPKs) 1076 PoS Market 17.8% 16.8%
Slide 47: Subsidy – H1
Subsidy – H1 Subsidy outstanding Rs. Crs H1: Receipts of Rs. 2,193 Crs. (Rs. 1,311 Crs. LY) Nutrient rates (Rs/kg) 2862 N P K S 20-21 18.789 14.888 10.116 2.374 1698 21-22 18.789 45.323 10.116 2.374 % chg 0% 204% 0% 0% • Rollover of Increased subsidy rates for P under NBS Policy - Special Package fo
Slide 48: New Product Launches H1
New Product Launches H1 Gro Shakti Plus - Nutrient 6 New Products - CPC 47
Slide 49: CIL: Crop Protection – Q2
CIL: Crop Protection – Q2 Sales in Rs .Crs 695 In Rs. Crs. 637 9% Market Q1 FY21 Q1 FY22 Growth Q2 FY21 Q2 FY22 Domestic 459 460 0% Exports 178 235 32% PBIT in Rs .Crs 133 Total 637 695 9% -10% 120 Q2 FY21 Q2 FY22 48 *Before Un-allocable Expenses
Slide 50: CIL: Crop Protection – H1
CIL: Crop Protection – H1 Sales in Rs .Crs 1318 1056 25% In Rs. Crs. Market H1 FY21 H1 FY22 Growth H1 FY21 H1 FY22 Domestic 734 850 16% PBIT in Rs .Crs Exports 322 468 45% 202 7% Total 1056 1318 25% 188 H1 FY21 H1 FY22 49 *Before Un-allocable Expenses
Slide 51: CIL: Consolidated P&L – Q2, H1
CIL: Consolidated P&L – Q2, H1 Q2 LY H1 LY P&L(Summary) Q2 CY H1 CY Gr% Q2 Gr% H1 4,611 7,825 Revenue from Ops 6,148 9,811 33% 25% 1,161 2,048 Gross Margin 824 1,396 -29% -32% 25% 26% GM % 13% 14% 701 1221 Other Expenses 709 1351 1% 11% 843 1256 EBIDTA 743 1226 -12% -2% 18% 16% EBIDTA Margin % 12% 1
Slide 52: Share Holding Pattern – 30th September 2021
Share Holding Pattern – 30th September 2021 • Promoters: - EID Parry: 56.42% - Individual/HUF: 0.65% Public & - Trust/Corporate Bodies: 0.51% Others 13.8% • Top Domestic Institutional Holdings: Insurance Co. 5.8% - Kotak Mutual Fund - DSP Mutual Fund FII 7.6% - LIC India - UTI Mutual Fund Promoters
Slide 53: The 2nd Green Revolution to be powered by superior products
The 1st Green Revolution driven by Agri-inputs The 2nd Green Revolution to be powered by superior Achieving self-sufficiency products, smarter delivery mechanisms & agri-tech in food grains 52 Achieving Income Security and Farm Sustainability
Slide 54: Coromandel……Bringing Smiles to the Farmers
Coromandel……Bringing Smiles to the Farmers 53
Slide 55: Thank You
Thank You Corporate Office: For Investor Relations, contact: Coromandel International Ltd., Ms Jayashree Satagopan Coromandel House, 1-2-10, SP Road JayashreeSatagopan@coromandel.murugappa.com Secunderabad, Telangana 500003 Mr Saurabh Jain JainS1@coromandel.murugappa.com Phone no: 040 6699-7300 54
Coromandel International — Q2 FY2021-22 Earnings Presentation on 6ix