2500 dealers across qtr, added 15% last qtr: Kamdhenu

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Satish Kumar Agarwal , CMD of Kamdhenu Ispat informs that the total income is up by 111% and the net profit has risen by 318%.

 

Excerpts from the exclusive interview with Satish Kumar Agarwal:

 

Q: Walk us through this quarter in terms of the realization and the volumes that you have clocked?

 

A: In the quarter, we are up; the total income is up by 111% and the net profit has risen by 318%.

 

Q: The realizations this quarter?

 

A: Net profit during this quarter has increased to Rs 270 lakh, that is up by 318%.

 

Q: What are the prices of long products right now and do you see them panning out in future?

 

A: Right now, the price of our TMT product is Rs 29,680 per metric tonne and I think, in future, the prices will stabilized due to continuous growth of demand in the market.

 

Q: What has been the addition to your dealer network this quarter?

 

A: We are right now 2,500 dealers and distributors across country. I think during the last quarter we have increased the dealer network by 15%.

 

Q: How many franchises do you have and how many franchisees do you hope to take the number to in FY08?

 

A: Right now we have 34 franchisees, 25 units manufacturing TMT Bars, 6 units manufacturing structural steel, 1 in binding wire and 2 in housing segment and hope that during '08, it will be increasing to 40 or 42 units.

 

Q: What have been your savings from the captive power plant this quarter?

 

A: This last quarter, we have saved to the tune of say Rs 50 lakhs.

 

Q: Any capacity expansions that you are planning?

 

A: Already on this day, we are raising the structure within the company and we are just focusing on steel products. We are planning for an expansion of steel throughout the country and right now, we have got the capacity of 10 lakh metric tonnes of TMT Bars, 3 lakh metric tonne of structural steel. But during the financial year '08, the effective steel will be escalated to 10 lakh metric tonnes with steel bars and we hope to go up to 15 lakh metric tonnes.

 

Q: Just leave us with the top and the bottomline; what do you hope to clock in the next quarter?

 

A: I think right now, it is not possible for me to comment on this. During '06-'07, we have performed fair enough and my profit has increased 339%, whereas the total income has increased by 138%. I hope during the current year, the strength will go up and we hope to maintain it and continue.