Nilkamal recommends 200% dividend, Q4 PAT up 141% YoY

Nilkamal is a small cap consumer discretionary company that recorded a market cap of ₹3,142.39 Cr in Friday's closing session. Nilkamal is the world's largest moulded furniture maker and Asia's largest processor of plastic moulded products. The firm has announced its Q4 and FY23 results, as well as a 200% dividend for eligible stockholders. 

The Board of Directors have “Recommended a final dividend of ₹20/- (200%) per equity share of ₹10 each (F.V.) on 14,922,525 Nos. of Equity Shares, which is subject to the approval of the shareholder at the ensuing Annual General Meeting (AGM) of the Company,” said Nilkamal in a stock exchange filing today.

During Q4FY23, the company recorded revenue from operations of Rs 828.89 Cr up by 11.70% YoY from ₹742.04 Cr in Q4FY22. The company said its net expenses reached ₹770.01 Cr during the quarter ended March 2023 compared to ₹726.13 Cr in the quarter ended March 2022. The Q4FY23 net profit of Nilkamal reached Rs 48.20 Cr during the quarter under review up by 141.24% YoY from ₹19.98 Cr in the year-ago quarter. The EPS of the company zoomed from ₹13.39 to 32.30.

The company's overall turnover was ₹816 crores in Q4FY23, up from ₹721 crore in Q4FY22, representing a 13% increase. It achieved EBIDT of ₹98 crores, up from ₹75 crores in the correspoding quarter of FY22. The company's net borrowing was ₹183 crores as of March 31, 2023, compared to ₹123 crores as of March 31, 2022. 

During FY2022-23, the company continued putting money in various businesses, incurring Capex of ₹198 crores, with approximately ₹50 crores spent on plant and machinery related to the plastics business, approximately ₹25 crores on the modular furniture and mattress business, approximately ₹38 crores on moulds, and the remainder on factory building, factory equipment, regional warehouses, assets on rent, and so on.

“The Company's plan for setting up of a greenfield project at Hosur got delayed by more than 3 quarters due to delay in acquiring of the land. Now the Company has successfully completed the acquisition of 76 acre of land and the construction on the said site shall commence shortly. The Company shall build plant for manufacturing continuous foam, mattress, ready furniture and sofa at a cost of ₹150 Crores. The manufacturing activity at the said plant will commence during the 1st half of FY25. This will enable the Company to strengthen its position for becoming One stop furniture destination for its B2C segment. Further, the Company shall invest approximately ₹100 Crores in its plastics and racking business. Thus, the total capex for the year shall be approximately ₹250 crores,” said Nilkamal in its earning statement.

On Friday, the shares of Nilkamal closed on the NSE at ₹2,134.90 apiece up by 0.54% from the previous close of ₹2,123.50.