KAMDHENU LIMITED : FY22 Financial Highlights

Kamdhenu Limited, India’s largest manufacturer and seller of branded TMT Bars, in the retail segment, has declared its Audited Financial Results for the Quarter and Full Year ended 31stMarch, 2022.

Paint Business – Key Highlights for Q4 & FY22

Particulars Q4 FY22 Q4 FY21 YoY FY22 FY21 YoY
Revenue (Rs. Cr.) 67.9 67.3 +0.9% 241.4 202.1 +19.5%
Volumes (In KL) 7,775 9,580 -18.8% 30,358 30,319 0.1%
  • Paint Business contributed 26.9% of Revenues in Q4 FY22 and 28.7% of Revenues in FY22.
  • Demand disruption witnessed in January due to covid related lockdown and shutdown of dealers and distributors across many states. Demand normalized in months of February & March 2022.
  • Pass through of raw material price increase during FY22. Average selling price per litre has increased from Rs. 63 in FY21 to Rs. 76 in FY22.
  • Increasing share from water-based products forming 79% of paints revenue in FY22.

Update on Scheme of Arrangement for Demerger of Paints Business into a Separate Legal Entity

  • The Hon’ble NCLT, Chandigarh Bench, Chandigarh during the hearing held on 22ndApril, 2022, has reserved the order on the Scheme of Arrangements including the De-merger of the Paints Business of the Company into a separate legal entity. The order is yet to be pronounced by the NCLT.


Steel Business – Key Highlights for Q4 & FY22

Particulars Q4 FY22 Q4 FY21 YoY FY22 FY21 YoY
Revenue from Own Facilities (Rs. Cr.) 145.6 127.8 13.9% 472.9 335.8 40.8%
Revenue from Royalty Income (Rs. Cr.) 24.3 26.6 -8.7% 91.6 85.3 7.3%
Franchise Volumes (In Lakh MT) 6.9 7.0 -1.6% 24.7 23.1 6.7%
  • Steel Business contributed 73.1% of Revenue in Q4 FY22 and 71.3% of Revenue in FY22.
  • Growth in own facility was mainly due to price increase during the quarter.
  • During FY22, volumes from own facilities grew by 9.6% YoY.

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

“Despite a challenging environment, we have ended FY22 on positive note recording revenue growth of 34% and PAT growth of 74%.

In our Paints business, we have reported revenue growth of 19% YoY to Rs.241 crores in FY22. Our paint factory at Chopanki, Rajasthan had started with full fledge operations which shall augur well to meet the demand of decorative paints. The Company has been able to pass on the price increase in raw material prices. During FY22, the Company has taken price increases of 8%-10%. We continue to monitor the raw material prices with the current geopolitical situation and supply side disruptions.

Our continuous focus is on providing eco-friendly products ensuring the beauty of nature remains intact. Our collaboration with Preity G Zinta has further strengthened and increased brand pull among masses. We expect the demand momentum to sustain with consumers shortening their repainting cycles and refurbishing their homes.

In our steel segment, we have clocked a revenue growth of 42% YoY to Rs. 599 crores in FY22. Demand for our steel products were strong during the year on account of increased construction activities.We are focused on increasing our TMT Steel capacity through franchisee route.

With a strong brand, asset light business model in steel business, large distribution network and  huge product portfolio in paints business, we are well placed to tap opportunities in future and provide unique value proposition to the end consumers.”

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