Kamdhenu June quarter net profit falls 75% to Rs 1.5 cr over reduced income

Kamdhenu Ltd on Friday posted a sharp decline of 75 per cent in its standalone net profit at Rs 1.5 crore due to reduced income.

The company had clocked a net profit of Rs 6 crore during the same quarter a year ago, Kamdhenu said in a BSE filing.

During April-June, the company said its total income also fell significantly to Rs 88.99 crore, from Rs 223.02 crore in the year-ago quarter.

Its total expenses were at Rs 87.05 crore, as against Rs 213.04 crore during April-June of the preceding fiscal.

In a separate statement, the company further said its business was impacted due to COVID-19 outbreak.

The company continues to monitor the impact of COVID-19 on its business including customers, supply chain etc, Kamdhenu said.

The company's CMD Satish Kumar Agarwal said: "The quarter gone by has been a challenging one for the steel industry as a whole. COVID-19 pandemic has caused the operations to come to a grinding halt which has impacted our business.

"It is reflected in the lower revenues and profitability of the company. With the subsequent easing of the lockdown guidelines, our company has slowing started getting back to normalcy in our operations and we are currently operating at over 80 per cent of our installed capacity."

The Gurugram-based Kamdhenu has a presence in the steel and paints segment.