Kamdhenu Q4 net profit rises 70.5% to Rs3.94cr; Sales decline

Paint Business revenue was at Rs67.3cr (up 8% qoq), Volumes at 9,580 KL (up 10% qoq). Steel Business brand turnover was at Rs4,061cr (up 21% qoq).

Jun 22, 2021 09:06 IST India Infoline News Service

Kamdhenu
Kamdhenu Limited, India’s largest manufacturer and seller of branded TMT Bars, in the retail segment on Monday declared its Audited Financial Results for the Quarter and Year ended March 31, 2021.

Net profit of Kamdhenu rose 70.56% to Rs3.94cr in the quarter ended March 2021 as against Rs2.31cr during the previous quarter ended March 2020. Total income declined 5.63% to Rs222.43cr in Q4FY21as against Rs235.83cr during Q4FY20.

The company’s overall revenues in Q4 grew 21% qoq, EBITDA at Rs20.4cr (a growth of 50% qoq). Profit Before Tax (PBT) (Excl. Exceptional item) at Rs15.6cr (up 61% qoq).

Paint Business revenue was at Rs67.3cr (up 8% qoq), Volumes at 9,580 KL (up 10% qoq). Steel Business brand turnover was at Rs4,061cr (up 21% qoq), Royalty Income at Rs26.6cr (up13% qoq), Franchisee Sales Volumes at 6.98 lakh MT (up 10% qoq). The company declared final dividend of Rs0.80 per share (8% of FV).

“Post strong Q3, growth momentum has continued in Q4FY21 with unlock of economy and strong demand from urban areas and metros. Despite Covid-19, we have grown on sequential basis.

Paint Business contributed 30.3% of Revenues in Q4FY21. Focus on increasing share of premium and environment-friendly products. Consistent importance given to advertising and promotions by recent collaboration with Preity G Zinta as the Brand Ambassador for decorative paints business under brand name Kamdhenu Paints,” company said in a filing on Monday.

For the full year, net profit rose 706.42% to Rs15.0cre in the year ended March 2021 as against Rs1.87cr during the previous year ended March 2020. Sales declined 32.32% to Rs625.22cr in the year ended March 2021 as against Rs923.79cr during the previous year ended March 2020.

Commenting on the results and performance, Satish Kumar Agarwal, Chairman & Managing Director said:

“Despite the challenging year, we have ended FY21 on strong note. We have delivered a steady performance in a year that has been marked by uncertainty due to Covid-19. The spread of Covid-19 last year in March 2020 had led to severe disruption in business operations across industries.

However, with the unlocking of the economy and easing of restrictions have led to increased business activities. We have witnessed strong quarter on quarter improvement in both our business segments. Our capacity utilisation at both plants has been increasing gradually. Inspite of Covid-19 impact, we have clocked revenues of Rs625.2cr, EBITDA of Rs49.8cr and PBT (excluding exceptional item) of Rs31cr for overall business for FY21. We have delivered strong operational cash flow of Rs50.2cr for FY21.”

During early trade Kamdhenu Ltd was trading at Rs164.15 per piece down by Rs1.25 or 0.76% from its previous closing of Rs165.40 per piece on the BSE.

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