Mumbai: TMT bars and paints maker Kamdhenu more than doubled net profit for the first quarter of the current fiscal riding on high demand for the products coming from the infrastructure sector.
Net profit increased by 114% at Rs 6 crore with revenue increasing by 75% at Rs 400 crore.
The company that follows a franchisee based model saw royalty incomes rising by 39%. The company aims to have a royalty income of over Rs 100 crore by 2020 and double brand production capacity to 5 million tonne in the next 3-5 years, chairman Satish Kumar Agarwal said in a release.
"With high infrastructure growth expected, the demand for TMT steel would grow faster. We expect Kamdhenu to benefit a lot from the same. Affordable housing would be a big boost to the TMT steel sector," said Agarwal adding that its he expects the company's paints division to continue its momentum of recording profits.
88% of the company's revenue came from its steel business with the remaining coming from the paints division.
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