Coromandel International Reports Strong Q3 Growth Amid Rising Interest Expenses and Debt Concerns

Coromandel International, a prominent player in the fertilizers industry, has recently reported its financial results for the quarter ending December 2024. The company has experienced a notable adjustment in its evaluation, with its score shifting to 2 from -17 over the past three months.
The financial data reveals several positive trends for Coromandel International. The Profit Before Tax (PBT) for the quarter stands at Rs 569.45 crore, reflecting a significant year-on-year growth of 130.35%. Similarly, the Profit After Tax (PAT) has reached Rs 511.77 crore, marking a year-on-year increase of 121.6%. Additionally, net sales have shown a robust performance, totaling Rs 6,935.19 crore, which represents a year-on-year growth of 26.92%. The company’s cash and cash equivalents have also reached their highest level in the last six half-yearly periods, indicating an improvement in short-term liquidity.

However, there are areas of concern as well. The interest expense has risen to Rs 73.09 crore, the highest in the last five quarters, suggesting increased borrowings. Furthermore, the Debtors Turnover Ratio has declined to 11.26 times, indicating a slower pace in settling debts. Lastly, while non-operating income has reached Rs 113.67 crore, its sustainability may be questionable.

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