Kamdhenu has reported a dip of 62 per cent in its standalone net profit during the second quarter of the financial year 2020-21. Its profit after tax (PAT) stood at Rs 2.51 crore as against Rs 6.52 crore it registered in the corresponding quarter previous fiscal.
The company’s net income stood at Rs 147.50 crore in Q2 FY21, a dip of 38% from Rs 238.04 crore it recorded in the similar quarter last year.
Satish Kumar Agarwal, chairman & managing director of the company 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.
We are currently operating at about 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 crore for Q2 FY21.
Coming to the paint business, the company has reported revenues of Rs 49 crore for Q2 FY21. We have started seeing gradual recovery in the demand for decorative paints. We expect this momentum to sustain in second half of the year.”
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.
Steel segment’s revenue dipped by 49 per cent in the second quarter of the this fiscal and stood at Rs 97.17 crore while the paints’ segment revenue increased by 6 per cent and stood at Rs 49.20 crore.