India: Kamdhenu to Increase Steel Capacity to 5 MnT by 2022

Kamdhenu Limited, one of the leading brand in Indian rebar market particularly in retail segment has released its financial performance for first quarter FY'20. Company eyes to enhance rebar capacity to 5 MnT pa by 2022 against current capacity of 3.3 MnT pa.

The company has reported its marginal increase in its Revenue (Exclusive Trading) from steel business by around 1% to INR 105 crore in Q1 FY'20 as compared to INR 104 crore in Q1 FY'19.

Kamdhenu Limited has about 7,500 dealers in steel segment which serves products across India, the report stated.

Royalty Income through Franchise registered at INR 24.4 crore in Q1 FY'20 enlarged by 29% compared to INR 18.9 crore in Q1 FY'19.

The company's PBT (Profit before Tax) has increased by 30% to INR 13 crore in Q1 FY'20 as compared to INR 10 crore Q1 FY'19.

Further, manufacturing capacities (franchises) reported at 3.3 MnT in Steel Rebars, Structural Steel 0.5 MnT and Colored coated profile sheets at 0.25 MnT on yearly basis with over to 75 franchise units.

Company's brand sales turnover reported more than INR 12,000 Crore in FY 19 against INR 8,000 Crore in FY 18.

Company's Vision by 2022

Manufacturing Capacity as per the investor presentation, Kamdhenu Limited vision to reach capacity of about 5 MnT per annum.

Brand Revenue is expected to reach around INR 20,000 crore by 2022 and existing revenue stood at INR 12,027 crore and Royalty income will be around INR 150 crore by 2022.