Coromandel International's Q2 FY25 financials show mixed results, investors advised to hold stock

Coromandel International, a leading player in the fertilizer industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Coromandel International has seen a negative performance in the quarter, with a score of -15, which has improved from -23 in the last three months. However, there are some positive aspects to the company’s financials.

The net sales for the quarter were the highest in the last five quarters, at Rs 7,432.83 crore. This indicates a positive trend in the near term for the company’s sales. However, there are also some areas that need improvement.

The Profit Before Tax less Other Income (PBT) for the quarter was at Rs 826.85 crore, which has fallen by -13.40% year on year. The near term trend for PBT is also negative. Similarly, the Profit After Tax (PAT) for the quarter was at Rs 664.05 crore, showing a decline of -12.3% year on year. The near term trend for PAT is also negative.

Another concerning aspect is the Dividend Payout Ratio (DPR), which is at its lowest in the last five years at 10.76%. This has fallen each year, indicating that the company is distributing a lower proportion of its profits as dividends.

The company’s interest cost has also increased by 15.03% quarter on quarter, with the highest being Rs 66.05 crore in the last five quarters. This suggests that the company has taken on more borrowings.

Overall, while Coromandel International has shown some positive aspects in its financials, there are also areas that need improvement. Investors are advised to hold their stock and keep an eye on the company’s future performance.