Demonstrates strong performance driven by volume growth and strategic initiatives
RR Kabel announces its unaudited financial results for the quarter ending 30 June 2024, showcasing its highest-ever quarterly revenue.
In Q1 FY25, RR Kabel achieved revenue from operations amounting to Rs 1,808.1 crore, marking a 13.2 per cent year-on-year increase from Rs 1,597.3 crore in Q1 FY24. This growth is attributed to significant volume growth in both the wires and cables (W&C) domestic business and the FMEG sector.
Operating EBITDA for the quarter stood at Rs 95.4 crore, with a margin of 5.3 per cent, reflecting a decrease from the previous year’s margin of 7.1 per cent. Profit Before Tax (PBT) was reported at Rs 86.1 crore, while Profit After Tax (PAT) was Rs 64.4 crore, with margins of 4.8 per cent and 3.6 per cent, respectively.
The W&C segment saw an approximate 11 per cent revenue growth compared to Q1 FY24, driven by increased volumes in both wires and cables. However, segment margins dropped by 160 basis points due to raw material price volatility.
The FMEG segment experienced a 32 per cent revenue growth year-on-year, led by strong performance in fans, appliances and switches. Despite substantial advertising expenses, the segment’s loss was minimised through increased contribution margins.
Commenting on the results, Shreegopal Kabra, Managing Director, RR Kabel, expressed satisfaction with the company’s performance amidst challenging conditions, including elections and heatwaves. He highlighted the company’s commitment to growth and margin sustainability amid volatile copper prices, bolstered by government capital expenditure and a resilient residential sector. Kabra also emphasised the significant growth in the FMEG segment, driven by strategic decisions.
RR Kabel’s strategic focus on expanding capacity, targeting high-margin products and implementing strategic initiatives has positioned the company for continued growth in FY25.
Established in 2007, RR Kabel has grown to become India’s largest exporter of wires and cables, offering a diverse array of electrical products for residential, commercial, industrial and infrastructural applications. The company’s products are compliant with the REACH and RoHS directives, ensuring safety and reliability.
Looking ahead, RR Kabel continues to focus on expanding its product offerings and retail network, aiming to capture emerging opportunities and set new industry benchmarks.
