Q2 2025 Kamdhenu Ltd Earnings Call Transcript
Key Points
- Kamdhenu Ltd (BOM:532741) reported a 3% year-on-year revenue growth in Q2 FY25, reaching INR190 crores, driven by increased construction activities.
- The company's steel business saw an 11% growth in sales volume from its franchise route and an 8% growth from its own manufacturing facility.
- Profit before tax (PBT) margins improved significantly to 11% in Q2 FY25 from 7.3% in the previous year.
- Royalty revenue from franchisees increased by 11% to INR33 crores, highlighting the strength of Kamdhenu's brand and its capital-efficient business model.
- Kamdhenu Ltd remains debt-free as of September 30, 2024, with strong ROCE and ROE of 28.9% and 22%, respectively.
- The paint business experienced a year-over-year revenue degrowth of 14% in H1 FY25, with EBITDA declining from INR9 crores to INR7 crores.
- Kamdhenu Ventures Limited reported a 17% year-on-year revenue decline in Q2 FY25, with a significant 65% drop in profit after tax.
- The average selling price of TMT bars fell, impacting revenue growth from the company's own manufacturing facility.
- The company's dealer network expansion has been slow, with only a 35% increase since 2010, which may hinder future growth.
- The share price of Kamdhenu Ltd has seen a significant decline, raising concerns among investors about the company's market performance.
Ladies and gentlemen, good day, and welcome to Q2 and H1 FY25 earnings conference call of Kamdhenu Group.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Satish Agarwal, MD and Chairman of Kamdhenu Limited. Thank you, and over to you, sir.
Good morning, and a very warm welcome to everyone present on the call. Along with me, I have Mr. Harish Agarwal, Group's CFO; and Mr. Sunil Agarwal, Chairman of Kamdhenu Ventures Limited; and Strategic Growth Adviser, our Investor Relation Adviser.
We have posted our results and investor presentation for the quarter and half year ended September 30,
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