New Delhi, Nov 10 (PTI) Buildings material maker Kamdhenu Ltd on Wednesday posted an over three-fold jump in its consolidated net profit to Rs 7.65 crore for the quarter ended September 30, mainly on account of higher income.

Its net profit had stood at Rs 2.51 crore in the July-September 2020 period, the company said in a regulatory filing.

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The company's total income during July-September 2021 soared to Rs 216.42 crore, from Rs 137.26 crore in the year-ago period.

Its total expenses were at Rs 206.42 crore, against Rs 133.42 crore a year ago.

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In a separate statement, the company said its paints business has contributed 29 per cent of revenues during the second quarter of 2021-22. The company has witnessed good demand traction for its high-value products like premium emulsions, colourants and stainers.

"With the rapid pace of vaccination witnessed in the country and a significant drop in COVID-19 cases and unlocking of the economy, there has been a revival in demand. A lot of confidence is evident after the second wave of COVID-19, which will augur well for operations of businesses and should enable a more stable and conducive operational environment," Kamdhenu Chairman and Managing Director Satish Agarwal said.

With the government's impetus for infrastructure creation and pick-up in real estate projects, the company expects an increase in demand for steel and paint products going ahead, he added.

"We command a dominant market share in the organised retail segment of the steel and paint industry," Agarwal said.

Kamdhenu, which is a leading TMT-making company, is also in the process of hiving off its paints business into a separate entity.

Sharing details of its plan of the demerger, it said, "After the approval of the scheme of arrangement by the equity shareholders, secured creditors and unsecured creditors of the company in their respective meetings held on September 25, 2021, under the supervision of NCLT, Chandigarh Bench, the company has filed second motion petition physically with NCLT for its approval on October 5, 2021."

Agarwal had earlier said the company is aiming for over Rs 1,000-crore revenue from its paints segment in the next five years, amid rising demand for the product in line with new housing projects.

Kamdhenu, under the franchisee model, has TMT manufacturing plants in states like Odisha, Gujarat, Karnataka, Telangana, Andhra Pradesh and Bihar.

It also has plants in Goa, Rajasthan, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Punjab, West Bengal, Jharkhand, and Madhya Pradesh.

Besides paints, the Gurugram-based Kamdhenu Group has a presence in paint making.

It has a manufacturing plant at Chopanki in Rajasthan where it manufactures interior and exterior emulsions, stainers, colourants, designer paints, construction chemicals, waterproofing chemicals and other water-based speciality products.

It also outsources median and low-range products like distempers, enamel and putty from manufacturing units in Rajasthan, Uttar Pradesh, Haryana and Punjab. HRS hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)