Building materials maker Kamdhenu Group on Wednesday reported a net profit of Rs 7.20 crore for December quarter, 2020-21 as expenses declined significantly. The company had posted a net loss of Rs 13.03 crore during October-December period of the preceding fiscal, Kamdhenu said in a BSE filing.
At Rs 7.20 crore, the profit was also higher from Rs 2.51 crore net profit in July-September period of the fiscal year ending March 31, 2021.
During the period under review, the company’s total income was at Rs 194.25 crore as against Rs 255.75 crore in the year-ago-quarter.
The expenses reduced to Rs 184.61 crore from Rs 248.58 crore a year ago.
“The company has performed well in the quarter despite several challenges. With the gradual revival of the economy and unlocking of industries across India post COVID-19 disruption in Q1, we have seen a significant quarter-on-quarter improvement in both our steel and paints business. Our average capacity utilisation has also been increasing continuously through Q1 to Q3 FY21,” Kamdhenu CMD Satish Agarwal said in a statement.
There was a sharp rebound witnessed in demand on the back of healthy rural consumption, strong sales in the auto and white goods sector and increased activity in construction sector, he said.
On the proposals made with respect to infrastructure sector in the Budget, Agarwal said “We are quite positive on the future with the government very bullish and focused on building infrastructure in the country in various areas – agriculture, railways, health, roads, housing and affordable housing, etc.”
Infrastructure building activities in the coming future would lead to increased steel demand, he said.
Gurugram-based Kamdhenu Group has a presence in the steel and paints segment.
The company, under the franchisee model, has manufacturing plants in Odisha, Gujarat, Karnataka, Telangana, Andhra Pradesh, Bihar, Goa, Rajasthan, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Punjab, West Bengal, Jharkhand and Madhya Pradesh, among others.
