Nilkamal – Back on Track?

Nilkamal Ltd ltd –

Notes from AR 2023-24 –

Financial outcomes –

Revenues – 3196 vs 3131 cr
EBITDA – 294 vs 312 cr ( margins @ 9 vs 10 pc )
PAT – 122 vs 134 cr
RoCE @ 11 vs 13 pc YoY

Some prominent shareholders with their percentage holdings –

HDFC small cap fund – 5.4 pc
DSP small cap fund – 8.6 pc
Kotak small cap fund – 4.8 pc
Seetha Kumari ( famous investor ) – 3.2 pc
FIIs – 1.14 pc

Material handling division grew by 2 pc
Furniture division grew by 8 pc

Company is extremely well positioned in B2B material handling and B2C furniture space

Company is in the process to re-group its furniture business under the following subdivisions –

Nilkamal Moulded
Nilkamal Homes ( including Nilkamal Furniture Ideas and @ Home )
Nilkamal EDGE ( B2B furniture division for schools, offices, healthcare )
Nilkamal ECOM
Nilkamal Mattress and Foam

Regrouping of furniture business shall sharpen the focus on each segment and improve the overall performance of the division

Aims to keep adding more FOFO ( franchise owned, franchise operated ) stores selling Nilkamal’s ready furniture including Beds, Sofas, Wardrobes, Mattresses and Pillows – in the affordable premium and value for money categories

Company’s first phase of Greenfield expansion near Hosur should be over by Q3 FY 25

Company will also commence commercial production of continuous slab polyurethane foam line as a backward integration into Sofas and Mattresses in FY 25 . Will also make technical foam for use is acoustics, automotive Industry, footwear etc

Segment wise performance –

Plastics division grew by 3 pc reporting a sale of 2941 vs 2852 cr. The material handling division is reporting very healthy volume growth but the value growth is restricted by steep fall in RM costs. Company believes that their material handing division is witnessing strong demand from end user industries like – manufacturing and logistics and the same should continue in FY 25

E-Commerce sales stood @ 144 cr, up by 22 pc YoY

The Bubbleguard segment grew by > 30 pc YoY ( for third year in a row )

Disc: not holding, not SEBI registered, posted just for educational purposes