RR Kabel Limited , India's leading wire and cable manufacturer, has announced its financial results for the first quarter, showcasing robust growth and improved profitability.

Strong Revenue Growth

The company reported a consolidated revenue of ₹2,058.60 crore for Q1, marking a significant 13.9% increase compared to ₹1,808.10 crore in the same quarter last year. This growth was primarily driven by strong performance in the Wires & Cables (W&C) segment.

Improved Profitability

RR Kabel's operating EBITDA for Q1 stood at ₹143.10 crore, representing a substantial 49.9% year-on-year growth. The EBITDA margin improved by 167 basis points to 7.0%, up from 5.3% in the corresponding quarter of the previous year.

The company's Profit After Tax (PAT) saw an impressive 39.4% increase, reaching ₹89.80 crore compared to ₹64.40 crore in the corresponding quarter of the previous year. The PAT margin also improved by 80 basis points to 4.4%.

Segment Performance

Wires & Cables Segment

The W&C segment, which forms the core of RR Kabel's business, delivered a strong performance:

• Revenue grew by approximately 16% year-on-year to ₹1,833.50 crore
• Segment profit before tax and interest increased by 23.1% to ₹139.10 crore
• Segment profit margin improved to 7.6% from 7.2% in the corresponding quarter of the previous year

Fast-Moving Electrical Goods (FMEG) Segment

The FMEG segment showed signs of improvement:

• Revenue remained relatively flat at ₹225.10 crore
• Segment loss reduced substantially to ₹7.10 crore from ₹20.70 crore in the corresponding quarter of the previous year
• Margin improved to -3.2% from -9.0% in the same quarter last year

Management Commentary

Mahendrakumar Kabra, Managing Director of RR Kabel, commented on the results: "We are pleased to begin the fiscal year on a strong footing, delivering broad-based growth across key financial and operational parameters. This performance reflects our sharp execution focus, the resilience of our business model, and the continued trust our customers place in us."

He further added, "Our wires and cables segment delivered strong growth, supported by infrastructure expansion, increased electrification, favorable copper prices and improved demand, especially in the export market. The FMEG segment maintained stable revenues while significantly reducing losses, reflecting improved operational efficiency and continued progress toward profitability."

Operational Highlights

• The company maintained a healthy balance between domestic and export revenues, with exports contributing 29% to the total revenue in Q1.
• Working capital management improved, with inventory days reduced to 56 days from 60 days in the previous year.

Outlook

RR Kabel's strong start to the fiscal year positions it well for continued growth. The company's focus on operational efficiency, coupled with favorable market conditions in the wires and cables segment, is expected to drive further improvements in profitability.

As India's largest exporter of wires and cables, RR Kabel is well-positioned to capitalize on both domestic and international growth opportunities in the electrical products market.

Note: All figures are based on consolidated financial results for Q1 ended June 30.

RR Kabel Limited , India's leading wire and cable manufacturer, has reported a strong financial performance for the quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue: RR Kabel's revenue increased by 13.7% year-over-year to ₹20.58 billion, up from ₹18.1 billion in the same period last year.
• Net Profit: The company's net profit surged by 39% to ₹888 million, compared to ₹639 million in the same quarter last year.
• EBITDA: EBITDA saw a significant jump of 49.5% to ₹1.42 billion, with the EBITDA margin improving to 6.90% from 5.25% in the previous year.

Key Financial Metrics

Performance Analysis

RR Kabel's robust quarterly performance underscores its strong market position in the wires and cables industry. The significant increase in revenue, coupled with an even more substantial rise in EBITDA and net profit, indicates improved operational efficiency and potentially favorable market conditions.

The expansion of the EBITDA margin from 5.25% to 6.90% suggests that the company has successfully managed its costs while growing its top line. This improvement in profitability is a positive sign for the company's financial health and operational effectiveness.

While specific segment performance details were not provided, the overall growth in revenue and profitability indicates strength across the company's business lines.

Outlook

The strong quarterly results position RR Kabel well for continued success. The company's ability to significantly improve its profitability while growing revenue demonstrates effective management and potentially favorable market dynamics in the wire and cable sector.

Investors and industry observers will likely be watching closely to see if RR Kabel can maintain this growth trajectory in the coming quarters, especially in light of any broader economic or sector-specific trends that may impact the industry.

Note: This article is based on the latest available financial information for RR Kabel. For the most up-to-date and detailed financial data, please refer to the company's official financial statements and reports.