Kamdhenu posts net profit of Rs 6.52 crore in Q2 FY20

NEW DELHI: Leading TMT maker Kamdhenu Tuesday said its net profit jumped over 25 per cent to Rs 6.52 crore during the quarter ended September 30, 2019. The company had clocked Rs 5.20 crore net profit during the same period a year ago, Kamdhenu said in a BSE filing.

During the quarter, the company's total income fell to Rs 238.04 crore, compared with Rs 332.20 crore in the year-ago period. Its expenses also decreased to Rs 232.82 crore, against Rs 324.14 crore in the July-September period of 2018-19 fiscal.

In a conference call, Kamdhenu Chairman and Managing Director Satish Agarwal said, "The steel sector has faced multiple headwinds with imports from China. The company has done well even during these challenges. Our volumes has grown by over 17 per cent on back of our great distribution network spread across the country."

During the first half of ongoing fiscal, the average prices of TMT bars reduced by 14 per cent which led to lower profits in the steel business.

On the outlook for the domestic steel sector, Agarwal said the prices of steel will pick up in near term as various projects are going to come up in real estate and construction sectors.

Government initiatives like Housing for All objective by 2022 will also lead to a rise in demand of steel.