RR Kabel Q2 FY-25 Financial Results, Revenue Jumps 12% YoY

December 3, 2024838 Views Cables, Financials, FMEG, RR Kabel, Wires

RR Kabel [NSE: RRKABEL], an Indian manufacturer of wires and cables and Fast Moving Electrical Goods (FMEG), has announced its financial results for Q2 of FY-25.

RR Kabel’s Q2 FY-25 Standalone Financial Results

RR Kabel reported a standalone revenue of Rs. 1,810.14 crore from operations and a corresponding Profit After Tax (PAT) of Rs. 49.75 crore during Q2 of FY-25.

RR Kabel’s Consolidated Financial Performance

YoY Comparison of RR Kabel’s Financial Numbers: Q2 FY-25 vs. Q2 FY-24

RR Kable’s Revenue Comparison: Q2 FY-24 vs. Q2 FY-25 vs. Q1 FY25

RR Kabel’s top line grew by 12.45% YoY to Rs. 1,810.14 crore during Q2 of FY-25 from Rs. 1,609.67 crore during Q2 of FY-24. Despite the gain in revenue, the company’s PAT fell by 33.16% YoY to Rs. 49.53 crore in Q2 of FY-25 from Rs. 74.10 crore during Q2 of FY-24.

In proportion with RR Kabel’s PAT, the company’s Earning Per Share (EPS) also slipped to Rs. 4.39 during Q2 of FY-25 from Rs. 6.66 in Q2 of FY-24.

RR Kable’s PAT Comparison: Q2 FY-24 vs. Q2 FY-25 vs. Q1 FY25

QoQ Analysis of RR Kabel’s Financial Performance: Q2 FY-25 vs. Q1 FY-25

On Quarter-over-Quarter (QoQ) basis, the company’s revenue remained almost flat, decreasing only slightly by 0.11%, from Rs. 1,808.11 crore earned during Q1 of FY-25. RR Kabel’s Q2 FY-25 PAT, however, tumbled QoQ by 23.07% from Rs. 64.38 crore, which was reported for Q1 of FY-25.

Segment-Wise Revenue Comparison of RR Kabel

RR Kable’s Segmental Revenue: Q2 FY-24 vs. Q2 FY-25

Wires & Cables: This segment of the company brought in a revenue of Rs. 1,611.82 crore during Q2 of FY-25 from Rs. 1,450.39 crore, reported for Q2 of FY-24. This reflects an YoY increase of 11.13% in the company’s quarterly segmental revenue.

RR Kabel mentioned in its press release that during Q2 of FY-25, revenue from its Wires & Cables segment grew due to an increase in sales volume as compared to that in Q2 of FY-24. However, the company noted that margins in this segment decreased by 4% in Q2 of FY-25 compared to Q2 of FY-24, primarily due to high volatility in metal prices.

FMEG: RR Kabel’s quarterly revenue from Fast Moving Electrical Goods (FMEG) segment jumped by 24.12% YoY to Rs. 198.36 crore during Q2 of FY-25 against Rs. 159.81 crore during Q2 of FY-24. This growth in segmental revenue was driven by higher sales volume of fans, appliances, and switches.

RR Kabel’s Ongoing CapEx for FY-25

During the company’s earnings call for Q2 of FY-25, Mr. Rajesh Jain, Chief Financial Officer of RR Kabel, said that the company has an ongoing capital expenditure (CapEx) plan of Rs. 500 crore for FY-24 to FY-25. This plan includes doubling the power cable capacity and increasing wire manufacturing capacity by 20% to 25%.

Mr. Jain added that these expansion plans are expected to be completed by March 2025. He added “Our strategic and initiatives remain firmly on track and we are on course to complete the current CapEx cycle, which will enable us to achieve our future growth”.

About RR Kabel Ltd.: Mumbai-headquartered RR Kabel is a part of RR Global and is a manufacturer of wires, cables, and Fast Moving Electrical Goods (FMEG) in India. The company has manufacturing plants at Silvassa and Waghodia.