Nilkamal – Back on Track?

Nilkamal Ltd –

Notes from FY 23’s AR –

FY 23 financial outcomes –

Sales – 3131 vs 2730 cr, up 14 pc
EBITDA – 312 vs 224 cr , up 37 pc ( margins @ 10 vs 8 pc )
PAT – 134 vs 83 cr

Declared a dividend of Rs 20/ share

Material handling division grew by 14 pc
Furniture division grew by 16 pc
Bubbleguard business grew by 62 pc

Company acquired 70 acres of land at Hosur for Greenfield expansion into continuous foam mattress and ready furniture. Expected to go live by Q1 FY 25

Company makes a variety of plastic, steel furniture. Also make Sofas, Office chairs

New capacity iro Bubbleguard business shall also go live in Q1 FY 25

Ready furniture – comprising of knock down furniture in Wood, Steel and Glass remains a key focus area for the company. Company has been working hard to establish robust retail channel for this business so as to be able to showcase its entire range to the potential buyers. Company now stands at 100 dedicated retail stores with retail space of 4 lakh sq ft. Intend to add another 2 lakh sq ft retail space in near future ( inside 1-2 yrs )

The mattress business could not grow in FY 23. They have put in an action plan to get back to high growth path

E-Commerce continues to be a high growth channel. Currently delivering to 12000 PIN codes in India

Company’s lifestyle retail business –
@ HOME – registered a sale of 230 cr, growing by 29 pc. As of Mar 23, a total of 30 @ HOME stores are operational. 17 are company owned and 13 are franchisee owned

Disc: initiated a small tracking position, may add/reduce depending on company’s performance, biased, not SEBI registered