Kamdhenu Sees 28% Profit Growth to Rs 15.43 Crore in Q1 FY25 Despite Revenue Decline
Kamdhenu's profit grows 28% to over Rs 15 crore in Q1 FY25 despite revenue decline due to general election and severe heat waves
KamdhenuSteel MakerQ1 Fy25Profit GrowthRevenue DeclineInfrastructure DevelopmentReal EstateAug 10, 2024
The company's expenses dropped to Rs 171.05 crore from Rs 194.26 crore in the same period a year ago, contributing to the growth in profit. Satish Kumar Agarwal, Chairman & Managing Director, attributed the decline in revenue to the general election and severe heat waves, which significantly impacted construction activities.
However, Agarwal expressed confidence that demand will improve as the government has a strong focus on infrastructure. Kamdhenu is among the country's leading TMT manufacturing players, with a market share of 20% in the segment.
The company's performance is a testament to its ability to navigate challenging market conditions. Despite the decline in revenue, Kamdhenu's profit growth is a positive sign for the steel industry.
Kamdhenu's focus on infrastructure development is likely to drive growth in the coming quarters. With the government's emphasis on infrastructure development, the demand for steel is expected to increase, benefiting companies like Kamdhenu.
The company's performance is also a reflection of its commitment to reducing costs and improving efficiency. The decline in expenses is a significant contributor to the growth in profit, demonstrating Kamdhenu's ability to manage its costs effectively.
Overall, Kamdhenu's Q1 FY25 performance is a positive sign for the company and the steel industry as a whole. Despite challenges, the company has demonstrated its ability to grow profitably and navigate challenging market conditions.
Frequently Asked Questions
What was Kamdhenu's profit after tax (PAT) in Q1 FY25?
Rs 15.43 crore
What was the reason for the decline in Kamdhenu's revenue in Q1 FY25?
General election and severe heat waves, which significantly impacted construction activities
What is Kamdhenu's market share in the TMT manufacturing segment?
20%
What is the government's focus that is expected to drive growth for Kamdhenu?
Infrastructure development
What was the decline in Kamdhenu's expenses in Q1 FY25?
Rs 171.05 crore from Rs 194.26 crore
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