Amit Shah tables Citizenship (Amendment) Bill in Lok Sabha | Unnao rape victim buried in her native village | 32 people killed as fire breaks out at Delhi factory | India now known to world as rape capital, PM Modi believes in violence: Rahul Gandhi | India now known to world as rape capital, PM Modi believes in violence: Rahul Gandhi |
Kamdhenu Ltd records royalty income up 26% Y-o-Y at Rs. 48 crores

Kamdhenu Ltd records royalty income up 26% Y-o-Y at Rs. 48 crores

India Blooms News Service | @notintownlive | 12 Nov 2019, 10:42 pm

Kolkata/IBNS: Kamdhenu Limited, an Indian manufacturer and seller of branded TMT Bars, has declared its Unaudited Financial Results for the Quarter and Half Year 30th September, 2019.

The company has recouped its business strategy by reducing B2B Trading Sales and focus on improving efficiencies in own manufacturing and on franchisee-based business model which have led to increased margins and better efficiencies with higher RoE and RoCE.

The Steel Business contributed 81% of revenues whereas 19% is from the Paint Division.

The company has now started manufacturing in emulsion division at its Paint Factory, Chopanki, Alwar, Rajasthan where the manufacturing operations were disrupted due to fire incident.

The board has recommended a hive-off of the Paint Division through a de-merger into a separate mirror image shareholding company.

"This is expected to result in independent and better management focus on both the businesses, better operational efficiencies and unlocking value by listing both as different companies," a company statement.

The company is working towards achieving the completion of the de-merger to happen before the end of this financial year.

Commenting­­­­­­­ on the results and performance, Satish Kumar Agarwal, Chairman & Managing Director said: “The Company has done well even during these challenging times. The steel sector has faced multiple headwinds with imports from China increasing to a large extent which has caused disruptions in the domestic market."

The company's volumes have grown by over 17% on the back of the distribution network spread across the country.

During the first half, the average prices of TMT bars have reduced by 14% which has led to lower profits in the steel business.

"However, we were able to grow our PBT in the steel business by 8%, mainly driven by our strong execution strategies and our brand pull, created through our large distribution and marketing strength," he said.

"The situation in the steel market is now improving, and we are seeing certain green shoots," he added.

The company's Royalty Income grew by 23% to Rs. 23 crores for Q2 FY20 and it grew by 26% to Rs. 48 crores for H1 FY20.

"The company is on course to achieve its target of Rs. 100 crores as Royalty Income during this financial year. Along with this we also expect to reach the 5 million MT per annum capacity by FY22," said he.

 

 

Kamdhenu Ltd records royalty income up 26% Y-o-Y at Rs. 48 crores

India Blooms News Service
Comments ()

Post your comment:

Loading...
Web Analytics