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 ended 30th June 2021.

Paint Business - Key Highlights for Q1 FY22

Update on Scheme of Arrangement

Steel Business - Key Highlights for Q1 FY22


Q1 FY21 performance was impacted by lockdowns induced due to 1stwave of Covid-19, however Q1 FY22 performance was also impacted on account of restrictions imposed and disruption in operations caused due to 2ndwave 

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

“Q1 FY22 has been a challenging year with the second wave of Covid-19 impacting demand on account of localized and micro lockdowns rather than nation wide lockdown like last year. Production was impacted on account of partial operations, however with easing of restrictions, operations back to normal levels. With drop in Covid cases and a faster large scale rollout of vaccination drive across the country, we have witnessed a gradual pickup in demand from early June.Our capacity utilisation at both plants has been increasing gradually.  Despite of these external factors, we have reported revenues of Rs. 145.9 crores, EBITDA of Rs. 11.6 crores and PAT of Rs.5.6 crores for overall business for Q1 FY22.
 
For our paints segment, we have reported revenues of Rs.33.1 crores. for Q1 FY22. Post, the challenges in April and May 2021, we have started seeing normalcy from June 2021. We have witnessed certain delay in the restoration of the remaining building/ plant & machinery due to the second wave of Covid-19. It is almost nearing completion and expected to start soon. Our focus is on expanding our pan-India visibility through aggressive spends on advertising and promotions. Paint companies have witnessed pressure due to input cost inflation, however, raw material prices are expected to soften in the coming quarters. Though paint industry has faced challenges in short to medium term, however we believe factors like reducing repainting cycle and lower per capita consumption will drive growth for the decorative paints going ahead.

In our steel segment we have clocked revenues of Rs. 112.72 crs for Q1 FY22.YoY growth of 123% over a low base last year. Total brand sales turnover stood at Rs.3,485 crores for Q1 FY22.  Our Company has achieved royalty income of Rs. 21.5 crores in Q1 FY22. This is on the back of unique asset light model and our well-established brand in the market which is popular among the masses. Steel demand in India is expected to pick up in coming few months as consumption remains strong despite hit by the second wave of Covid-19. Starting June 2021, with unlocking of activities, we have started seeing economic activities back to normal levels. With affording housing projects, government push towards infrastructure spends and speeding up of real estate projects will drive the demand for steel products. 

With huge availability of vaccines and strong improvement in the pace of vaccination, we are witnessing the growth momentum returning back to previous levels. Monsoon continues to remain favourable from agrarian economy perspective. Longer Diwali period should enable better sales for quarters ahead.

The business environment is still uncertain due to the predicted third wave of the pandemic, however we are well equipped to overcome the near term challenges. With our strong brand, marketing and distribution network and wide range of products in decorative paints, we are well placed to capture any opportunities in future. We are continuously looking to penetrate in markets where our presence is less and strengthen our footprints in existing geographies. Going ahead, we expect on expanding our business with more franchisee and dealers.”