RR Kabel slipped 3.77% to Rs 1,545.65 after the company's consolidated net profit declined 33.16% to Rs 49.52 crore in Q2 FY25 as against Rs 74.09 crore posted in Q2 FY24.
Revenue from operations was at Rs 1,810.13 crore in second quarter of FY25, marking a growth of 12.45% as against Rs 1,609.67 crore in Q2 FY24.Profit before tax tumbled 43.19% to Rs 59.67 crore in Q2 FY25 as against Rs 105.04 crore recorded in the same period last year.
EBITDA declined 29.3% to Rs 85.6 crore in Q2 FY25 from Rs 121.1 crore in Q2 FY24. EBITDA margin reduced to 4.7% in the second quarter as compared to 7.5% recorded in the same period last year.
During the quarter, wires & cables segment of the company has earned total revenue of Rs 1,611.82 crore in Q2 FY25, up 11.13% as against Rs 1,450.38 crore posted in Q2 FY24. The growth is driven by volume expansion along with increased in average realization.
Fast moving electrical goods segment of the company grew by 25% in Q2FY25 over Q2FY24, driven by strong volume growth mainly in fans, appliances and switches.
On half year basis, the companys net profit declined 23.26% to Rs 113.90 crore in H1 FY25 as against Rs 148.44 crore posted in H1 FY24. Revenue from operations was at Rs 3,618.24 crore in H1 FY25, up 12.82% as against Rs 3,206.98 crore posted in H1 FY24.
Meanwhile, the companys board declared the interim dividend of Rs 2.50 per share on the equity shares of face value of Rs 5 each for the financial year 2024-25. The record date for the purpose of determining the entitlement of the equity shareholders for the said dividend shall be Friday 1 November 2023, as intimated by our letter dated 19 October 2024.
Shreegopal Kabra, MD said, - 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, breakeven in the FMEG segment, capacity expansion, and diversifying into newer and emerging market opportunities.
R R Kabel is a leading consumer electrical company in India and has an operating history of over 25 years in the country. It is Indias largest exporter of wires and cables, offering a wide range of electrical products including wires & cables, fans, lighting, electrical accessories, and appliances for residential, commercial, industrial, and infrastructural purposes. Committed to quality and innovation, the company's products adhere to global guidelines and standards, ensuring safety and reliability.
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