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 Half Year ended 30thSeptember 2021.
Paint Business – Key Highlights for Q2 & H1 FY22
- Paint Business contributed 29% of Revenues in Q2 FY22
- Post Q1 FY22, we started witnessing gradual recovery in economic activities and business coming back to normal levels. We have witnessed good demand traction in paints business
- Value growth was higher viz a viz volume growth YoY on account of change in product mix and selling of high value products like premium emulsions, colourants and stainers during Q2 FY22
- As of 4thOctober, 2021, the Company has fully received the insurance claim of Rs.15.44 crores towards the loss of stocks. Insurance claim towards building, plant & machinery is under process and expected to be received within this financial year
Update on Scheme of Arrangement for Demerger of Paints Business in a Separate Company
- Post approval of the scheme of arrangement by the equity shareholders, secured creditors and unsecured creditors of the Company in their respective meetings held on 25thSeptember, 2021 under the supervision of NCLT, Chandigarh bench, the Company has filed 2nd Motion petition physically with NCLT for its approval on 5th October, 2021.
Steel Business – Key Highlights for Q2 & H1 FY22
- Steel Business contributed 71% of Revenues in Q2 FY22
- Post Q1 FY22, economic and construction activities started back and speeding up, sales has picked up from June 2021 onwards
- Franchise units and own manufacturing plant is operating smoothly
- Capacity utilization from the own manufacturing plant at Bhiwadi stood at ~84% for Q2 FY22
Commenting on the results and performance, Mr. Satish Kumar Agarwal, Chairman & Managing Director said:
“With rapid pace of vaccination witnessed in the country and significant drop in covid cases and unlocking of the economy, there has been revival in demand. A lot of confidence is evident post 2nd wave of Covid which will augur well for operations of businesses and should enable a more stable and conducive operational environment. Q2 FY22 has been healthy quarter with overall revenues of Rs.215.5 crores, EBITDA of Rs.14 crores and PAT of Rs.7.7 crores.
Coming to our paints business, we have clocked revenue growth of 58% YoY in Q2 FY22. We have seen good demand traction for our products. I am pleased to share that our own paint factory at Chopanki, Rajasthan which was under partial operations post fire incident is fully functional now. With state of art facility and upgraded manufacturing capabilities, our Company is ready to fulfill the demand for products from this facility. Our focus is on expanding our pan-India visibility through aggressive spends on advertising and promotions. We expect with increasing consumer preference for home upgradation and renovation, demand for paint products will remain strong.
In our steel segment we have reported a revenue growth of 58% YoY to Rs. 152.7 crores in Q2 FY22. We have witnessed robust demand for steel products which was on back of increased construction and railway activities. During Q2 FY22, there was mismatch in demand and supply which led to fall in realizations as against raw material prices which did not come down due to unprecedented increase in coal price. However, currently the prices of finished products are back to Q1 FY22 level and we expect good growth momentum ahead.
With Government’s impetus for infrastructure creation and pick up in real estate projects, we expect increase in demand for steel and paint products going ahead. We command a dominant market share in the organized retail segment of steel and paint industry. With our strong brand, new product categories in decorative paints, marketing and distribution network and unique asset light model, we are well placed to capture any opportunities in future. We aspire to align our brands as brands of people’s choice and increase our brand turnover to 22,000 Crores by FY 2023-24.”