Kushal Tradelink FY17 Net zooms 43%

by Shrutee K/DNS

Consolidated FY17 Net Profit touches Rs 140.16 crore, up 43% as                            compared to Rs 97.89 cr in FY16 

Consolidated FY17 revenues up 48 %, at Rs 2,360.56 cr, as compared to Rs 1590.78 cr

The company’s board declares a fourth interim dividend of 15% 

Ahmedabad, 25 May 2017: On the back of strong contributions from trading business, Ahmedabad-headquartered trading major Kushal Tradelink Limited (KTL), posted a 43% rise in its consolidated net profit, touching Rs 140.16 crore for FY 2016-17 ended on 31 March 2017, as compared to Rs 97.89 crore recorded during the previous year. KTL’s consolidated revenues jumped 48% to Rs 2,360.56 crore as compared to Rs 1,590.78 crore during FY2015-16.  On quarter basis, for Q4 ended 31 March 2017, KTL’s consolidated net profit was down 39% to Rs 22.60 crore as compared to net profit of Rs 36.81 crore posted in the corresponding quarter of previous year.  The company had issued bonus shares to its shareholders in the ratio of 1:1 during the fourth quarter of FY2017.

Talking about the company’s outstanding performance, Mr Sandeep Agrawal, Chairman and Managing Director, Kushal Tradelink said: “Despite deep impact of demonetization, the marked improvement in KTL’s Q4 and FY 2017 performance is attributed to strong contribution from our overseas trading operations. With manufacturing capacities added to our balance sheet during the year, we are expecting even better performance and better margins in times to come.” At the meeting, the company’s Board also approved incorporation of a Wholly-owned Subsidiary for the development of Industrial Park and/or Textile Park with an investment size up to Rs 1,000 crore. 

KTL’s Overseas Trading activities continued to be the driver of KTL’s performance, contributing nearly 84% to the total revenues during FY2017. 

Profit before Exceptional and Extraordinary Items & Taxes for FY2017 stood at Rs 156.58 crore as compared to Rs 105.81 crore during the previous year, registering a growth of nearly 48%. 

For FY2017, on an enhanced equity base of Rs 47.45 crore, the earnings per share (EPS) stood at Rs 5.91 on fully-diluted basis of Face Value Rs 2 per share. 

The company’s board recommended a fourth interim dividend of 15% (Rs 0.30 per share) on each equity share of Face Value of Rs 2 each. The company has already paid dividends of 30% each for the previous three quarters. 

During the fourth quarter, the company’s board approved the scheme of amalgamation of four companies – Ashapura Paper Mills Private Limited (APMPL), Kushal Wealth Creators Private Limited (KWCPL), Riddhi Siddhi Recyclers Private Limited (RSRPL) and Kushal Infrastructure Private Limited (KIPL) – into Kushal Tradelink Limited, with effect from 31 March 2017, thus paving way for the backward integration of its operations. While APMPL, KWCPL and RSRPL are into manufacturing of various types of Kraft Paper, KIPL is engaged in infrastructure development. 

Mr Agrawal said: “KTL has strong roots with operations in India, Dubai and Singapore and trading in Paper, Agri Products, Active Pharma Ingredients, Chemicals, Plastics, Textile & Readymade Garments, Electronics &Accessories, Metals & Minerals and Capital Goods. The scheme of amalgamation of four companies will add manufacturing capacity of more than 175,000 tons p.a. of various grades of Kraft Paper.”

He continued: “Real estate arm Kushal Infrastructure has developed and delivered a well-planned industrial park with all important facilities in Changodar, Ahmedabad in a bid to provide SMEs the infrastructure to conduct their own warehousing, processing and manufacturing business. Kushal Industrial Park comprises 66 sheds with a well-developed network of roads, modern loading and unloading facilities and round the clock security. Besides, Kushal Infrastructure has developed an extensive affordable housing project named Kushal Awaas in Vatva near Ahmedabad. With a total of over 800 units, Kushal Awaas is providing quality housing infrastructure to the lowest sections of the Indian economy. The first phase comprising 451 flats will soon be delivered and on the other hand Kushal Infrastructure has tied up with the Indian arm of the California based Pacifica Group of Companies to create Marvella, a 3 and 4 BHK project comprising luxury apartments in one of the best locations of Ahmedabad.” Strategically located near two important roads, the SG Highway and the SP Ring Road, Marvella comprises 69 low-rise apartments surrounded by 70% open landscaped spaces and greenery.