Kamdhenu Posts Q3FY19 Financial Results
Deepthi | Myequity news | Date : 24-01-2019 16:20:00 IST
Kamdhenu Limited, India’s largest manufacturer and seller of branded TMT Bars has declared its Unaudited Financial Results for the Quarter and Nine Months ended 31st December, 2018.
Highlights for 9M FY19
Revenue up 21% to Rs. 974 crores as compared to Rs. 803 crores in 9M FY18
Profit before Tax up 64% to Rs. 26 crores as compared to Rs.16 crores in 9M FY18
Profit after Tax up 66% to Rs. 17 crores as compared to Rs.10 crores in 9M FY18
Royalty Income through Franchisee’s is up by 35% to Rs. 60 crores as compared to Rs. 45 crores in 9M FY18
Steel Business contributed 81.2% of Revenues whereas 18.8% is from the Paint Division
Highlights for Q3 FY19
The Company has recouped its business strategy by reducing B2B Trading Sales.
Revenue de-grew by 21% to Rs. 242 crores as compared to Rs. 305 crores in Q3 FY18 on account of reduced B2B Trading Sales
Profit before Tax up 29% to Rs. 9 crores as compared to Rs.7 crores in Q3 FY18
Profit after Tax up 32% to Rs. 6 crores as compared to Rs. 4 crores in Q3 FY18
Royalty Income through Franchisee’s is up by 41% to Rs. 22 crores as compared to Rs. 16 crores in Q3 FY18
Steel Business contributed 67.6% of Revenues whereas 32.4% is from the Paint Division
Commenting on the results and performance, Mr. Satish Kumar Agarwal, Chairman & Managing Director
said: “Our performance for 9M FY19 has been stellar. We have been able to outperform the market. Our profits have grown by 66% to Rs. 17 crores. Our royalty income has increased by 35% to Rs. 60 crores for the first nine months. We are leveraging our strength of Asset Light Business Model, Strong Brand Royalty and Large Distribution and Marketing network created.
The company is on course to achieve its target of Rs. 100 crores as Royalty Income in 2020 With high infrastructure and housing growth expected, the demand for TMT Steel Bars would grow faster. Kamdhenu is future ready as we are looking to double our brand production capacity to 5 million MT per annum in the next 3 years through our franchisees.
In the first nine months of the year, our Revenues in the paint segment grew by 35% to Rs. 183 crores and EBIT grew by 284% to Rs. 4 crores. Growth was led by increased sales of value added products. The process of hive-off of the Paint Division through a de-merger into a separate mirror image shareholding company which had been recommended by the board during the last quarter is under progress. This would result in independent and better management focus on both the businesses, better operational efficiencies and unlocking value by listing both as different companies.” About Kamdhenu Limited
Kamdhenu Group was founded in 1994 with a vision to provide Best Quality TMT Bars at Best Price. Today, led by Mr Satish Kumar Agarwal, the company is the market leader in branded TMT Bars and ‘Kamdhenu TMT Bar’ is the largest selling TMT Bar in India with brand sales turnover of ~Rs. 8,000 crores. Kamdhenu Paints, one of the leading Paint companies in India, is a division of Kamdhenu Limited. The company is credited for offering best-in-class paint products conforming to global standards. Its product portfolio under the brand KAMDHENU PAINTS-COLOUR DREAMZ includes Exterior Emulsions, Interior Emulsions, Acrylic Distempers, Enamel Paints, Cement Paints, Wall Primers & Putty, and Texture & Designer Finishes, Stainers, P.U. Wood Finishes and Metallic Finishes.