Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Q3 FY2021-22 Earnings Presentation
52 slides from Coromandel International's earnings presentation, January 2022
Slide 1: Investor Presentation Q3 FY2122
Investor Presentation Q3 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 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. 142 billion (FY20-21) • Market Cap: Rs. 235 billion (Jan 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 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 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 Huge opportunity Nitrogen Zinc xxx Nitrogen Iron xxx Potassium 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 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 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; fo
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: 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: 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: 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: 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 33: 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 Reinforce consumer capture the India 7 3 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: CIL: Q3 Result Update
CIL: Q3 Result Update Rs. Crs Parameter Turnover EBITDA PBT PAT Q3 21-22 5,100 546 510 382 % Growth 44% 9% 15% 14% Q3 20-21 3,542 500 445 334 Strong Revenue Growth, Stressed Margin (High RM Prices) 35
Slide 37: Environment: Rainfall & Agriculture
Environment: Rainfall & Agriculture • NE Monsoon Bountiful: Highest since 1901 Rabi – All India Sowing Update • +44% LPA (31 Dec) Sowing (21 Jan) - lakh ha • TN +59%, Kar +104%, AP: +40% 2020 2021 % inc • Heavy Rains impacted Standing Crop/ Spraying Rice 34.9 28.2 -20% • Reservoir Level at 119% of L
Slide 38: Environment: Economic Survey
Environment: Economic Survey India - Fastest Growing Big Economy 2021-24 37
Slide 39: Environment: Budget, Elections and Health
Environment: Budget, Elections and Health Budget Highlights: • Agri: • Hitech and Digital Services to Farmers (PPP Model) • Use of Kisan Drones • Funds for Startups, FPOs, Rental Machinery and Technology • Crop Diversification: • Millets, Oilseeds, • Promoting post harvest value addition: Infra & Lo
Slide 40: Industry DAP + Complex Fertilisers: Q3 FY21-22
Industry DAP + Complex Fertilisers: Q3 FY21-22 Qty in Lakh MT Qty in Lakh MT DAP NPK 31.0 29.0 28.6 28.1 27.3 21.4 17.5 13.6 14.0 11.0 4.4 4.7 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: 24% Production growth: -25% Source: mfms Imports growth: 25% Imports growth:
Slide 41: Industry DAP + Complex Fertilisers: YTD FY21-22
Industry DAP + Complex Fertilisers: YTD FY21-22 Qty in Lakh MT Qty in Lakh MT DAP NPK 93.1 87.7 85.7 72.8 75.3 72.6 55.9 43.5 30.1 30.7 14.7 12.8 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: 2% Production growth: -4% Source: mfms Imports growth: -22% Imports growt
Slide 42: CIL: Nutrients – Q3
CIL: Nutrients – Q3 Sales in Rs.Crs Volume Summary Vol LMT 4476 Segment Q3 FY21 Q3 FY22 Growth 48% 7% 3028 NPK +DAP (Mfd) 7.10 7.54 6% NPK +DAP 1.07 0.72 -32% (Imp) Q3 FY21 Q3 FY22 NP/NPKs Total 8.17 8.26 1% Primary Market PBIT in Rs.Crs 15% 14% Share (NP/NPKs) 438 PoS Market 10% 13% Share (NP/NPKs)
Slide 43: CIL: Nutrients – YTD
CIL: Nutrients – YTD Sales in Rs Crs 13039 Volume Summary Vol LMT 9835 33% Segment YTD FY21 YTD FY22 Growth 7% NPK +DAP (Mfd) 24.29 24.48 1% NPK +DAP 3.35 2.77 -17% (Imp) NP/NPKs Total 27.64 27.25 -1% YTD FY21 YTD FY22 Primary Market 15% 17% PBIT in Rs Crs Share (NP/NPKs) 1484 PoS Market 15% 15% Sha
Slide 44: Subsidy – Q3
Subsidy – Q3 Subsidy Outstanding Rs in Crs 2854 Q3: Receipts of Rs. 2,293 Crs. (Rs. 795 Crs. LY) Nutrient rates (Rs/kg) N P K S 1336 20-21 18.789 14.888 10.116 2.374 21-22 18.789 45.323 10.116 2.374 % chg 0% 204% 0% 0% YTD FY2021 YTD FY2022 • Rollover of Increased subsidy rates for P under NBS Polic
Slide 45: New Product Launches YTD
New Product Launches YTD Gro Shakti Plus - Nutrient 6 New Products - CPC 44
Slide 46: CIL: Crop Protection – Q3
CIL: Crop Protection – Q3 Sales in Rs.Crs 623 508 23% In Rs. Crs. Market Q3 FY21 Q3 FY22 Growth Domestic 316 350 11% Q3 FY21 Q3 FY22 PBIT in Rs.Crs 91 Exports 192 273 42% 9% Total 508 623 23% 83 Q3 FY21 Q3 FY22 45 *Before Un-allocable Expenses
Slide 47: CIL: Crop Protection – YTD
CIL: Crop Protection – YTD Sales in Rs.Crs 1941 1565 24% In Rs. Crs. Market YTD FY21 YTD FY22 Growth YTD FY21 YTD FY22 Domestic 1051 1201 14% PBIT in Rs.Crs 288 Exports 514 740 44% 6% Total 1565 1941 24% 271 YTD FY21 YTD FY22 PBIT 46 *Before Un-allocable Expenses
Slide 48: CIL: Consolidated P&L – Q3, YTD
CIL: Consolidated P&L – Q3, YTD Q3 LY YTD LY P&L(Summary) Q3 CY YTD CY Gr% Q3 Gr% YTD 3,542 11,385 Revenue from Ops 5,100 14,952 44% 31% 757 2,550 Gross Margin 808 2,572 7% 1% 21% 22% GM % 16% 17% 248 758 Other Expenses 256 784 500 1,756 EBIDTA 546 1,775 9% 1% 14% 15% EBIDTA Margin % 11% 12% 42 126
Slide 49: Share Holding Pattern – 31st Dec 2021
Share Holding Pattern – 31st Dec 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 57.6%
Slide 50: The 2nd Green Revolution powered by superior products and agri-tech
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 Achieving Income Security and Farm Sustainability 49
Slide 51: Coromandel……Bringing Smiles to the Farmers
Coromandel……Bringing Smiles to the Farmers 50
Slide 52: 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 51
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