Coromandel International - Results above estimates - Emkay

- Coromandel Q1FY13 PAT at Rs 1.15bn (-17%yoy) were better than estimates driven by higher than expected revenues and strong margins

- Revenues grew by 5% to Rs 18.5bn despite 20% drop in fertiliser volumes. Strong growth in non fertilizer business contributed ~28% to EBITDA

- Though fertiliser prices have increased by 25-30% however the impact of it is likely to be seen in subsequent quarters as system was already holding on to old inventory in Q1FY13

- Management is confident about maintaining its margins driven by non fertilizer business. We maintain our HOLD rating with price target of Rs 271 (ex-bonus debenture).

Source : Equity Bulls

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