Kamdhenu Paints witnesses 206% growth in net profit in FY22

Kamdhenu Limited told the media that it reported an increase of 206% in its consolidated net profit during the September quarter.

The company's profit after tax (PAT) stood at Rs 7.64 crore in the second quarter (Q2) of FY22, compared to Rs 2.50 crore in the previous fiscal year.

Its net consolidated total income stood at Rs 216.41 crore, with 58% growth from Rs 137.26 crore in the last quarter.

Chairman and Managing Director of Kamdhenu, Satish Kumar Agarwal, said that Q2 FY22 was a positive quarter with total revenue of Rs 215.5 crore. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) is Rs 14 crore, and PAT is Rs 7.7 crore. The paint business has revenue growth of 58% year-on-year (YoY) in Q2 FY22. It witnessed a robust demand for steel products with increased construction activities.

The revenue generated from the steel business was Rs 152.65 crore, while the paint business stood at Rs 62.87 crore. During Q2 FY22, the paint business contributed 29% of the revenue, and the steel business contributed 71% of the revenue.

The National Company Law Tribunal (NCLT), Chandigarh, has approved the first movement towards the scheme of the arrangement, including the demerger of the paint business into a separate business.

After the approval, secured and unsecured creditors of the company in their meetings on 21 September under NCLT, Chandigarh, the company registered its second motion petition for its approval on 5 October.

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