Kamdhenu Limited reports strong performance in FY18

The company reported its audited Financial Results for the Quarter and Financial year ended March 31, 2018, recently.

For FY18, the company said its Profit Before Tax grew 108 per cent to Rs. 24 crore while Profit after Tax was up 93 per cent to Rs. 16 crore compared to the previous fiscal year.

The company said that its Royalty Income through Franchisees was up by 50 per cent for the year.

Satish  Kumar Agarwal, Chairman  & Managing Director said, "During the year, royalty income increased by 50 per cent to Rs. 61 crores. Our aim is to have a royalty income of over Rs.100 crores by 2020. With the continuous R&D work at our own plant, we were able launch Kamdhenu NXT in April 2017 which has been a huge success. During the year, we have increased the royalty charges on our new premium products by Rs.100 per metric tonne across all franchisees."

For the fourth quarter of FY18, the company's  revenue went up 55 per cent to Rs. 376 crores compared to Rs. 242 crores reported in the year-ago quarter.

Profit Before Tax in the latest quarter was up 191 per cent to Rs. 9 crores compared to Rs. 3 crores in Q4 FY17. Profit after Tax was up 204 per cent to Rs. 6 crores compared to Rs. 2 crores in the year-ago quarter.

"Post GST, we are seeing a major shift from the unorganized segment to the organized segment. There is a lot of consolidation taking place in the industry from which we are benefiting a lot. We expect the demand for TMT Steel Bars to grow multifold with the kind of opportunities we see in our country. Affordable Housing would be a big boost to the TMT Steel Sector. With the government’s focus primarily on infrastructure development, we expect accelerated growth for us in the coming few years," said Agarwal.

Highlighting the company's Paints division (Kamdhenu Paints), he said, "We have grown our paints division as well and have recorded profits for the first time this year. We expect the momentum in the paint business to continue going forward.”