Nilkamal Dividend: Nilkamal, a prominent consumer discretionary company, concluded Friday’s trading session with a market capitalization of ₹3,142.39 Cr. Renowned as the world’s largest manufacturer of molded furniture and Asia’s leading processor of plastic molded products, Nilkamal recently disclosed its Q4 and FY23 results, along with a generous 200% dividend for eligible stockholders.

In a filing with the stock exchange, Nilkamal stated, “The Board of Directors has recommended a final dividend of ₹20/- (200%) per equity share of ₹10 each (F.V.) on 14,922,525 Nos. of Equity Shares, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company.”

During Q4FY23, Nilkamal witnessed a commendable growth in revenue from operations, reaching Rs 828.89 Cr, which reflects an 11.70% year-on-year increase compared to ₹742.04 Cr in Q4FY22. The company’s net expenses amounted to ₹770.01 Cr in the quarter ending March 2023, surpassing the previous year’s figures of ₹726.13 Cr for the same period. Impressively, Nilkamal’s net profit for Q4FY23 soared to Rs 48.20 Cr, marking a substantial YoY growth of 141.24% from ₹19.98 Cr in the corresponding quarter of the previous year. Furthermore, the company’s earnings per share (EPS) surged from ₹13.39 to 32.30 during the same period.

In terms of overall turnover, Nilkamal experienced a 13% rise, with Q4FY23 figures amounting to ₹816 crores, up from ₹721 crore in Q4FY22. The company’s EBIDT also demonstrated significant improvement, reaching ₹98 crores, compared to ₹75 crores in the corresponding quarter of FY22. The net borrowing of Nilkamal as of March 31, 2023, stood at ₹183 crores, indicating an increase from ₹123 crores on March 31, 2022.

Throughout FY2022-23, Nilkamal continued to invest in various business ventures, incurring a capital expenditure (Capex) of ₹198 crores. Notably, approximately ₹50 crores was allocated to plant and machinery related to the plastics business, around ₹25 crores was spent on modular furniture and mattress operations, while roughly ₹38 crores was dedicated to molds. The remaining funds were utilized for factory building, factory equipment, regional warehouses, and assets on rent, among other expenses.

Nilkamal addressed its plan to establish a greenfield project in Hosur, which encountered a delay of more than three quarters due to land acquisition issues. However, the company has now successfully acquired 76 acres of land, and construction on the site is set to commence shortly. The upcoming plant, which will cost ₹150 Crores, will manufacture continuous foam, mattresses, ready furniture, and sofas. The manufacturing activities at this plant are scheduled to commence in the first half of FY25, bolstering Nilkamal’s position as a comprehensive furniture destination for its B2C segment. Additionally, the company plans to invest approximately ₹100 Crores in its plastics and racking business. Consequently, the total capex for the year is estimated to be approximately ₹250 crores, according to Nilkamal’s earning statement.

On Friday, Nilkamal shares concluded trading on the NSE at ₹2,134.90 apiece, representing a modest 0.54% increase from the previous closing price of ₹2,123.50.

In conclusion, Nilkamal’s robust financial performance in Q4FY23 and FY2022-23, as well as the announcement of a substantial dividend for shareholders, demonstrates the company’s commitment to delivering value and growth. With its position as a global leader in molded furniture and plastic products, Nilkamal is poised to leverage its upcoming projects and investments to further strengthen its market presence and enhance its offerings.