Kamdhenu Group Q2FY22
Kamdhenu Ltd registers over 3-fold surge in net profit to Rs 7 cr for Q2FY22
Kolkata/IBNS: TMT Bars and paint manufacturer Kamdhenu Ltd posted a net profit of Rs 7.65 crore in Q2FY22, more than three-fold increase compared to net profit of Rs 2.51 crore recorded in the July-September 2020 period.
The building material maker's net profit jumped mainly on account of higher income, showed the financial results posted by the company in a regulatory filing.
In the July-September 2021 quarter, the company's total income during jumped to Rs 216.42 crore, from Rs 137.26 crore in the year-ago period.
During the quarter under review, total expenses increased to Rs 206.42 crore, against Rs 133.42 crore a year ago.
Kamdhenu Ltd said in another statement that its paints business accounted for 29 percent of revenues during the second quarter of 2021-22.
"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," the company said.
The company has witnessed good demand traction for its high-value products like premium emulsions, colourants and stainers.
"With the rapid pace of vaccination witnessed in the country and a significant drop in COVID-19 cases and unlocking of the economy, there has been a revival in demand. A lot of confidence is evident after the second wave of COVID-19, which will augur well for operations of businesses and should enable a more stable and conducive operational environment," Kamdhenu Chairman and Managing Director Satish Agarwal said.
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, he added.
"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,” he stated.
"As of October 4, 2021, the company has fully received the insurance claim of Rs15.44 crores towards the loss of stocks. Insurance claim towards building, plant & machinery is under process and expected to be received within this financial year," the company said in a statement.
The company also posted an update on scheme of arrangement for demerger of paints business in a separate company.
Sharing details of its plan of the demerger, it said, "After the approval of the scheme of arrangement by the equity shareholders, secured creditors and unsecured creditors of the company in their respective meetings held on September 25, 2021, under the supervision of NCLT, Chandigarh Bench, the company has filed second motion petition physically with NCLT for its approval on October 5, 2021.
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