Investor Release : 9th November 2020, New Delhi
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 30th September 2020.
   

• Steel Business contributed 66% of Revenues whereas 34% is from the Paint Business for Q2 FY21

Update on Scheme of Arrangement

• The draft scheme of arrangement of the Company and Kamdhenu Concast Ltd, Kamdhenu Overseas Ltd, Kamdhenu Paint Industries Ltd, Kamdhenu lnfradevelopers Ltd, Kamdhenu Nutrients Pvt Ltd, Kay2 Steel Ltd, Tiptop Promoters Pvt Ltd, Kamdhenu Ventures Ltd and Kamdhenu Colour and Coatings Ltd and their respective shareholders and creditors was approved by the Board of Directors.
• National Stock Exchange and Bombay Stock Exchange vide their observation letters dated 28.09.2020 have made their observations in the draft Scheme, accordingly, the company is required to submit the petition before NCLT within six months.

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

“The onset of this Financial Year had been quiet challenging for the whole industry on account of complete lockdown due to CoVID-19. Following the partial shutdown of operations in Q1 FY21, weak demand and low sales, Q2 FY21 has witnessed a sharp bounce back in business activities and a significant improvement in demand. We have witnessed strong recovery in demand for our products. We have clocked revenues of Rs. 97.2 crores in Q2 FY21 from our steel business.

Operations at our Steel & Paint Factory at Bhiwadi and Chopanki are taking place with all the necessary precautions. We are currently operating at ~ 80% of our installed capacity and we are ramping our operations on daily basis. Our Company has achieved Royalty Income of Rs. 20.5 crores and brand turnover of Rs.2,645 crores for Q2 FY21. This is on the back of uniqueness of our brand which has established a positive perception across the masses. We are continuously focused on providing quality products to fulfil the needs of our customers.

Economic Activity is gradually recovering in India. With a gradual revival of the economy and unlocking of industries across India post COVID-19, activities in construction and various projects have picked up and demand in the domestic market has surged. Additionally, affordable housing and rural development can improve construction activity. Indian Steel Market has started showing signs of recovery. Further with the upcoming festive season, the demand for white goods and auto sector will also further spur the steel market. Government measures towards investment in the Indian infrastructure sector like railways and highways will significantly drive the demand for steel and its products.

Coming to the paint business, the Company has reported revenues of Rs. 49 crores for Q2FY21. We have started seeing gradual recovery in the demand for decorative paints. We expect this momentum to sustain in second half of the year.

At Kamdhenu, we always believe in improving cost efficiencies and are conscious of product development and we are fully committed for the same. Going forward, we aim to increase our market share in the domestic TMT segment. We are also looking to penetrate further into markets where our presence is less and strengthen our footprints in existing geographies. We are well prepared to face challenges heads on in the current pandemic situation and adjust to these changing times in the current business environment ”
More Information www.kamdhenulimited.com