Kamdhenu revenues jump 46% yoy to Rs588cr in 9MFY22

2 Feb 2022 , 03:42 PM

Kamdhenu Limited, India’s largest manufacturer and seller of branded TMT Bars, in the retail segment, has declared its Unaudited Financial Results for the Quarter and Nine Months ended December 31, 2021. The company’s quarterly consolidated revenue rose to Rs226.53cr in Q3FY22 from Rs183.42cr in Q3FY21. Profit After Tax (PAT) was marginally higher at Rs7.68cr in Q3FY22 from 7.18cr in Q3FY21.

Overall revenues in 9MFY22 stood at Rs587.9cr up, 46% yoy from 402.85cr in 9MFY21. EBITDA stood at Rs40cr, up 37% yoy. PAT in 9MFY22 stood at Rs20.9cr, up 88% yoy from Rs11.14cr.

The company’s Paint Business in 9MFY22 revenue stood at Rs173cr, Volumes stood at 22,584 KL. The company reported a positive EBIT of Rs5.8cr. Paint Business contributed 34.2% of Revenues in Q3 FY22 and 29.5% of Revenues in 9M FY22

Steel Business contributed 65.8% of revenues in Q3FY22 and 70.5% of Revenues in 9MFY22. Brand Turnover in 9MFY22 stood at Rs11,250cr, Royalty Income at Rs67.3cr, Franchisee Sales Volumes at 17.78 lakh MT.

Kamdhenu Ltd stock trade on Wednesday ended at Rs223.65 per piece down by Rs3.6 or 1.58% from its previous closing of Rs227.25 per piece on the BSE.

Satish Kumar Agarwal, Chairman & Managing Director said: “Post the revival in economic activities, we have continued to maintain momentum in our business. Despite of the ongoing third wave of Covid, we have not witnessed any material impact on our business.

In our Paints business, we have achieved revenue growth of 25% yoy in Q3FY22 and 29% yoy in 9MFY22. This is on the back of full fledge operations at our paint factory at Chopanki, Rajasthan from October 2021 onwards. Demand for our products have remained strong driven by festive season and prolonged wedding season in India. While the inflationary trend continued for raw material prices in Q3 FY22, the company took price hike of ~10%-11%. There has been some softness in raw material prices in the current quarter and we expect it to stabilize soon.”

He added, “Demand for decorative paints has been witnessing strong traction over past few quarters and we expect this momentum to continue on back of shortening of repainting cycle, housing demand and consumer preference to build pucca houses.

In our steel segment, we have clocked a revenue growth of 23% yoy to Rs149cr in Q3FY22 and 55% yoy growth in 9MFY22. However our volumes were impacted during the quarter due to partial operations/ shutdown at our own manufacturing plant at Bhiwadi due to restrictions imposed by NGT in Delhi & NCR region. Operations are back to normal levels and we expect good demand momentum ahead.”