R R Kabel share price down 6% after Q2 PAT plunges 33% YoY

R R Kabel share price: R R Kabel share price slipped up to 6.06 per cent to hit an intraday low of Rs 1,508.85 per share on Friday, October 24, 2024. 

 

The fall in R R Kabel share price came after the company announced weak September quarter of financial year 2025 (Q2FY25) results. 

 

In Q2FY25, profit after tax (PAT) dropped 33.2 per cent year-on-year (Y-o-Y) to Rs 49.5 crore, as opposed to Rs 74.1 crore in the same quarter of financial year 2024 (Q2FY24).

 

The company’s revenue from operations, however, soared 12.5 per cent Y-o-Y to Rs 1,810.1 crore, as opposed to Rs 1,609.7 crore in the same quarter last year (Q2FY24).

 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda) dropped 29.3 per cent annually to Rs 85.6 crore, as against Rs 121.1 crore in Q2FY24. 

 

Consequently, Ebitda margin squeezed 279 basis points (bps) to 4.7 per cent in Q2FY25, from 7.5 per cent in Q2FY24. 

 

Segment-wise show

 

The revenue from the wires and cables segment saw about 11 per cent growth in Q2FY25 compared to Q2FY24, driven by volume expansion along with an increase in average realisation. The segment margin, however, decreased about 4 per cent in Q2FY25 compared to Q2FY24 mainly due to a reduction in contribution margin on account of high volatility in metal prices.

 

In the FMEG segment, revenue rose approximately 25 per cent annually, influenced by strong volume growth mainly in Fans, Appliances and Switches 

 

“RR Kabel has delivered its highest-ever quarterly and half-yearly revenues, despite overall moderate volume growth. The Wires & Cables business in the domestic market achieved strong double-digit volume growth, while the FMEG segment recorded solid revenue performance, driven by robust volume growth and an improved product mix, maintaining its position as the fastest-growing among peers. Despite challenges like global shipment delays and higher commodity prices, demand has remained stable. Looking ahead, we expect margin improvements in the second half of the year, with our capex plans progressing as scheduled and set for completion by the fiscal year-end. We are also focused on our long-term vision of achieving double-digit Ebitda margins, break even in the FMEG segment, capacity expansion, and diversifying into newer and emerging market opportunities,” said Shreegopal Kabra, MD of R R Kabel.

 

R R Kabel Limited is a prominent consumer electrical company in India, boasting over 25 years of experience in the market. As the largest exporter of wires and cables in the country, it offers an extensive array of electrical products, including wires, cables, fans, lighting solutions, electrical accessories, and appliances tailored for residential, commercial, industrial, and infrastructural applications. 

 

At 1:45 PM, R R Kabel shares were trading 4.67 per cent lower at Rs 1,531.15 per share. In comparison, BSE Sensex was trading 0.97 per cent lower at 79,292.37 levels.