Nilkamal Q4 PAT Jumps 140% YoY; Declares 200% Final Dividend for FY23!

The domestic market indices are trading on a mixed note amid uncertain global cues and mixed corporate earnings. The broader index Nifty 500 is up 0.25% during the early morning trade, with stock specific action being the theme of the market in recent times. Meanwhile, one company that has impressed investors with stellar Q4FY23 earnings is Nilkamal Ltd, exceeding D-street expectations.  

In its latest quarterly filing, the plastic manufacturer has reported a multifold jump of 140% YoY in net profits to Rs 48.20 crore from Rs 19.98 crore in the same quarter of previous fiscal. Also, the total income for the quarter stood at Rs 828.89 crore, a modest rise of 11.70 YoY from Rs 742.04 crore in March 2022. EBITDA stood at Rs 98 crore in Q4FY23 from Rs 75 crore in Q4FY22.   

Interestingly, the board of directors has recommended 200% final dividend for FY23, i.e., Rs 20 per equity share for the face value of Rs 10 per share, subjected to the approval of shareholders at the ensuing Annual General Meet (AGM).   

Commenting on the growth plans, the company said, “The Company has successfully completed the acquisition of 76 acre of land and the construction shall commence shortly. The Company shall build plant for manufacturing continuous foam, mattress, ready furniture and sofa at a cost of Rs 150 crore. The manufacturing activity at the said plant will commence during the first half of FY25. This will enable the Company to strengthen its position for becoming a one-stop furniture destination for its B2C segment. Further, the Company shall invest approximately Rs 100 crore in its plastics and racking business. Thus, the total capex for the year shall be approximately Rs 250 crore.”   

Nilkamal Limited is a Rs 3,500 crore Smallcap company, engaged in the manufacturing and retailing plastic furniture, material handling solutions and lifestyle products. With a strong retail presence, sustainable practices and a focus on quality, Nilkamal has become a leading provider in the industry.  

On Monday, the NILKAMAL shares have soared over 12% to hit the intraday high of Rs 2425 on the exchanges.