Steel maker Kamdhenu's Q3 net profit grows 82% to over Rs 12 crore

Steel maker Kamdhenu Ltd has posted an 82 per cent growth in its net profit during the December quarter at Rs 12.02 crore, on the back of increased revenues.

The company had recorded Rs 6.6 crore net profit during October-December period of 2021-22 fiscal, Kamdhenu Ltd said in a statement on Friday.

Its revenue from operations also rose 23 per cent to Rs 182.7 crore from Rs 149 crore in the year-ago period.

At Rs 17.1 crore, the earnings before interest, taxes, depreciation and amortization (EBITDA) was 60 per cent higher from Rs 10.7 crore a year ago.

"We have delivered strong performance in Q3 & 9M of FY23. For 9M FY23, our company reported revenue growth of 36 per cent y-o-y to Rs 565.2 crore, EBITDA growth of 26 per cent y-o-y to Rs 44.8 crore and PAT growth of 19 per cent y-o-y to Rs 30.3 crore," Kamdhenu CMD Satish Kumar Agarwal said.

Kamdhenu Group recently listed its paints business Kamdhenu Ventures Ltd on the stock exchanges on January 24, post completion of the demerger process from its steel business.

On the outlook for the sector, Agarwal said 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.

The TMT 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.

Further, the government's push towards infrastructure creation is leading to further increase in domestic demand for steel. Looking at the for its products, Kamdhenu is also planning to increase its product mix, the CMD said.