Electrical wires and cable maker RR Ltd cable on Thursday (July 31) reported a 39.5% year-on-year jump in net profit at ₹89.7 crore for the first quarter ended June on the back of better contribution margin and operational efficiency. In the corresponding quarter of the previous fiscal, RR Kabel had posted a net profit of ₹64.3 crore.
Revenue from operations increased 13.8% to ₹2,058 crore against ₹1,808 crore in the corresponding period of the preceding fiscal.At the operating level, EBITDA jumped 48.5% to ₹141.3 crore in the first quarter of this fiscal over ₹95.2 crore last year. The EBITDA margin improved to 6.8% compared to 5.2% year-on-year.
Also Read: RR Kabel CFO outlines three-year plan to drive growth and expand marginsRR Kabel’s wires and cables (W&C) segment reported approximately 16% YoY revenue growth, supported by improved demand and favourable copper prices. The segment’s profit also improved by around 23% compared to Q1FY25, aided by better realisations and enhanced operational efficiency.
The fast-moving electrical goods (FMEG) segment, however, recorded flat revenue during the quarter. Despite the stagnant topline, the segment’s loss reduced significantly, driven by operational cost savings and a marginal increase in contribution resulting from favourable product mix and volume growth.Mahendrakumar Kabra, MD, said, “Our wires and cables segment delivered strong growth, supported by infrastructure expansion, increased electrification, favourable copper prices and improved demand specially in the export market.”
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“The FMEG segment maintained stable revenues while significantly reducing losses, reflecting improved operational efficiency and continued progress toward profitability,” he added.
The results came after the close of the market hours. Shares of RR Kabel Ltd ended at ₹1,439.15, up by ₹25.15 or 1.78%, on the BSE today (July 31).
Also Read: RR Kabel Q4 results: Strong earnings show, profit surges 64%; final dividend declared
(Edited by : Shoma bhattacharjee)
