Kamdhenu Limited, India’s manufacturer and seller of branded TMT Bars, in the retail segment, has declared its Unaudited Financial Results for the Quarter & nine months ended 31st December 2022. The ROE stood at 26% as on 31st December 2022. The RoCE stood at 35% on 31st December 2022.
Shareholders of the company in their general meeting had considered and approved to create, offer, issue and allot Convertible Warrants on preferential basis, in one or more tranches, up to maximum of 50,00,000 warrants entitling the proposed allottees to exercise option to convert and get allotted one Equity Share of face value of Rs 10 each fully paid-up against each warrant, within 18 months from the date of allotment of warrants at a price of Rs. 141 or such other higher price as may be ascertained by the Statutory or Regulatory Authorities, to the persons belonging to Promoter Group and Non-Promoters entities.
The objectives of the fund-raising is acquiring stake strategically in some of the franchisee units so as to re-model the franchisee business of the company. Enhancing the brand position and corporate image to leverage the overall brand premium in the steel market so as to generate the higher royalty income. Reduction in debt in order to make the company debt free. Other general corporate purposes.
Commenting on the results and performance, Satish Kumar Agarwal, Chairman & Managing Director said: “We have delivered strong performance in Q3 & 9M FY23. Revenues grew of 23% YoY to Rs. 182.7 crores, EBITDA grew by 60% YoY to Rs. 17.1 crores and PAT growth of 83% YoY to Rs. 12.0 crores for Q3 FY23. For 9M FY23, the Company reported revenue growth of 36% YoY to Rs. 565.2 crores, EBITDA growth of 26% YoY to Rs. 44.8 crores and PAT growth of 19% YoY to Rs. 30.3 crores. The domestic steel demand growth continues to remain healthy, driven by renewed thrust on infrastructure development and pick-up in the real estate and construction activities. With a boom in the Indian iron and steel industry, the TMT Steel Bar Market has been increasing at a fast rate with a significant growth rate over the years, and it is likely to increase significantly in the coming decade.”
He further added, “The Government’s push towards infrastructure creation is leading to further increase in domestic demand for steel. With the wide portfolio of products from TMT bars and structural steel we are well established to cater to any demand going ahead. Effective operation management and an asset-light franchisee model gives us a competitive edge in the market. Furthermore, the Company intends to introduce new products, doing business with more franchisees and dealers, and increase margins. We command a dominant market share in the organized retail segment of steel industry. With our strong brand, marketing and distribution network and unique asset light model, we are well placed to capture any opportunities in future. Post demerger of paints business from Kamdhenu Limited to Kamdhenu Colour and Coatings Limited, its holding company – Kamdhenu Ventures Limited got listed on 24th January 2023 on the Stock Exchanges. The demerger will help streamline business initiatives of the group, which will help create shareholder value.”
