Kamdhenu Brand Sales crossed Rs. 12,000 Crores for FY19
Royalty Income up 37% to Rs. 84 crores
Profit after Tax up 43% to Rs. 22 crores
New Delhi, May 03, 2019: Kamdhenu Limited, India’s largest manufacturer and seller of branded TMT Bars, in the retail segment, has declared its Audited Financial Results for the Quarter and Year ended 31st March, 2019.
Highlights for FY19
Ø The Board of Directors of the Company have recommended a dividend of Re.1/- per share which is 10% on a face value of Rs. 10 per share
Ø 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 lead to increased Margins and Better efficiencies with Higher RoE and RoCE
Ø Revenue up 4% to Rs. 1,232 crores as compared to Rs. 1,180 crores in FY18
Ø Revenue from Paints business has grown by 35% to Rs. 270 Crores in FY19 as compared to Rs. 200 Crores in FY18
Ø Royalty Income through Franchisee’s is up by 37% to Rs. 84 crores as compared to Rs. 61 crores in FY18
Ø Profit before Tax up 43% to Rs. 35 crores as compared to Rs.24 crores in FY18
Ø Profit after Tax up 43% to Rs. 22 crores as compared to Rs.16 crores in FY18
Ø Steel Business contributed 78% of Revenues whereas 22% is from the Paint Division
Highlights for Q4 FY19
Ø Revenue de-grew by 31% to Rs. 258 crores as compared to Rs. 376 crores in Q4 FY18 on account of reduced B2B Trading Sales
Ø Royalty Income through Franchisee’s is up by 44% to Rs. 24 crores as compared to Rs. 16 crores in Q4 FY18
Ø Profit before Tax up 5% to Rs. 9.1 crores as compared to Rs.8.7 crores in Q4 FY18
Ø Profit after Tax up 4% to Rs. 5.9 crores as compared to Rs. 5.6 crores in Q4 FY18
Commenting on the results and performance, Mr. Satish Kumar Agarwal, Chairman &
Managing Director said:
“Our overall performance for the year ended 31st March 2019 has been above our expectations and we are very pleased to inform you that the Board of Directors of the company has recommended a Dividend of Re. 1 per equity share which is 10% on a face value of Rs. 10 per equity share.
We have been able to improve our profitability significantly during the year and have reported a 43% growth to Rs. 22 Crores. This has been on the back of a conscious decision on changing our business strategy by way of reducing B2B Trading Sales. The focus has been more 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. It has also helped us to reduce our Working Capital requirements.
We are also very happy to inform you that our overall Branded Sales of the Kamdhenu Brand has crossed Rs. 12,000 Crores for FY19 which is a growth of 49% YoY as compared to Rs. 8,072 crores in FY18. Our royalty income has also shown significant improvement and has grown by 37% to Rs. 84 crores for the full year. We have been able to leverage our brand created through our large distribution and marketing strength.
The company is on course to beat its target of Rs. 100 crores as Royalty Income by 2020. Along with this we also expect to add more franchisee capacity going forward and reach the 5 million MT per annum capacity by FY22.
To continue the growth momentum going forward we along with our franchisees have continued to invest in our brand which has led to higher spends in the year gone by.
Our performance in the Paints Business is improving substantially and have reported overall revenue growth of 35% YoY to Rs. 270 crores on the back of Growth was led by increased sales of value added products.
There was a fire incident that occurred in the Paint Factory at Chopanki during the midnight of 27th and 28th April, 2019. In order to meet substantial demand of our paint products and to reduce the impact of disruption of our manufacturing facilities, it has been decided on immediate basis to outsource production of the paint products from third party manufacturers at various locations. The Company will ensure the quality standards by deputing its own technical team at the manufacturer’s plant. We have also deputed a team of experts to expedite the restoration of manufacturing in the Paint Factory at Chopanki.”
Corporate Comm India(CCI Newswire)
