Nilkamal Reports ₹729 Crore Revenue for Q1FY25

On July 31, 2024, Nilkamal Limited announced its unaudited standalone and consolidated financial results for the first quarter ended June 30, 2024.

Standalone Financial Results for Q1FY25

The company reported revenue of ₹729 crore for Q1FY25, down from ₹769 crore in Q1FY24. The plastic business contributed ₹690 crore, while the retail segment ‘@home’ generated ₹39 crore, compared to ₹723 crore and ₹46 crore, respectively, in the previous year.

The company reported that the plastic segment saw a 3% volume growth but a 5% decline in value. Profit Before Tax (PBT) for the quarter was ₹19 crore, down from ₹38 crore in Q1FY24, while Profit After Tax (PAT) stood at ₹14 crore, compared to ₹28 crore in the same quarter last year.

During Q1FY25, the company’s B2B business, excluding the racking segment, remained subdued, and the B2C business saw a 13% decline due to weaker demand and postponed institutional/industrial spending, largely attributed to the general elections, which is considered a temporary factor.

The ‘@home’ segment experienced a 15% decline, primarily due to a slowdown in retail and reduced foot traffic.

However, the racking business showed a strong recovery, with a 44% increase in sales, driven by renewed industry investment, and is expected to maintain this momentum. The mattress business grew by 10% in Q1FY25, with the company anticipating continued growth through expanded product offerings, increased branding, more channel partners, and the start of in-house foam production during FY 2024-25.

Consolidated Financial Results for Q1FY25

For Q1FY25, after consolidating the accounts of the subsidiaries and joint venture, Nilkamal’s net sales stood at ₹743 crore, down from ₹783 crore in the same quarter of the previous year. PAT after minority interest was ₹18 crore, compared to ₹32 crore in the corresponding quarter of the previous year.

The consolidated results include contributions from Nilkamal’s subsidiaries Nilkamal Eswaran Plastics Private Limited and Nilkamal Eswaran Marketing Private Limited in Sri Lanka, Nilkamal Crates and Bins FZE in Ajman, and Nilkamal Foundation in India, as well as its joint venture Cambro Nilkamal Private Limited in India.

The Sri Lankan subsidiaries showed improved performance, while the Ajman subsidiary experienced muted results. The joint venture in the US, Cambro Nilkamal Private Limited, met expectations and expanded its product offerings to the hospitality industry. However, the business from these subsidiaries and the joint venture remains relatively minor compared to the standalone business of Nilkamal.

On July 31, 2024, the share price of Nilkamal Ltd opened at ₹2,027.20, touching the day’s low at ₹1,935.00, as of 2:09 PM on the NSE.

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