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Informist, Thursday, Jul. 31, 2025

--R R Kabel Apr-Jun consol net profit INR 897.67 mln 

--Analysts saw R R Kabel Apr-Jun consol net profit INR 911 mln 

--R R Kabel Apr-Jun consol net profit INR 897.67 mln vs INR 643.79 mln 

--R R Kabel Apr-Jun consol revenue INR 20.59 bln vs INR 18.08 bln year ago 

By Ketaki Patil

MUMBAI – R R Kabel Ltd. Thursday reported a sharp year-on-year increase in its bottom line for the June quarter yet missed analysts' estimates, albeit by a small margin. The company beat analysts' expectations on revenue, again just about.

The electrical cables maker reported a consolidated net profit of INR 897.67 million, up 39.4% on year but down 30.5% sequentially. This was below the INR 911 million net profit expected by analysts. The company's revenue from operations was INR 20.59 billion, up 14% on year but down 7% on quarter. This was marginally higher than the INR 20.51 billion expected by analysts.

Total expenses for the reporting quarter were INR 19.52 billion, up 12% on year but down 5% on quarter. The rise in expenses was mainly due to an increase in the cost of materials consumed, which rose 6% on year to INR 16.40 billion. Besides the growth in cost of material consumed, a 7% on-year increase in other expenses to INR 1.40 billion and a 5% increase in employee benefit costs to 931 million also raised total costs.

The company's revenue rose on account of a 16% growth in the cables and wires segment, driven by improved demand and favorable copper prices. The cable and wires segment's profit rose 23% on year to INR 1.39 billion due to better realisation and operational efficiency. This segment contributed 89% to the company's revenue. The loss of the company's fast moving consumer goods segment declined due to savings in operational cost along with marginal increase in contribution on account of product mix and volume growth.

"Our wires and cables segment delivered strong growth, supported by infrastructure expansion, increased electrification, favorable copper prices and improved demand specially in export market," Mahendrakumar Kabra, managing director of the company. said. 

The company reported consolidated earnings before interest, tax, depreciation, and amortisation of INR 1.43 billion, up 50% from INR 954 million reported in the year-ago quarter. This is in line with INR 1.43 billion the Street had estimated. The company's EBITDA margin for the reporting quarter rose to 7.0% from 5.3% in the year-ago quarter. The operating EBITDA and net profit have improved due to better contribution margin and operational efficiency.

Thursday, shares of R R Kabel ended at INR 1,439.80 on the National Stock Exchange, up 1.7% from the previous close.   End

Edited by Ashish Shirke

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