In a remarkable display of financial strength, RR Kabel witnessed a surge of more than 8% in its stock value on November 7 after the company’s Q2 FY24 net profit more than doubled, reaching an impressive Rs 74.09 crore for the quarter ending in September. This significant growth is a testament to the company’s robust operational strategies and market resilience.
During the second quarter, RR Kabel’s revenue experienced a substantial 17.7% YoY increase, soaring to Rs 1609.7 crore. The company’s EBITDA also showcased remarkable growth, surging by 92.7% from the previous year to Rs 121.1 crore. Additionally, the EBITDA margin expanded by 293 basis points, reaching 7.5% in the quarter.
The wires and cables segment, constituting 90% of the company’s revenue mix, exhibited substantial growth, rising from Rs 1218.45 crore in the previous year to an impressive Rs 1450.38 crore in the current fiscal.
RR Kabel, a leading provider of wires, cables, and fast-moving electrical goods (FMEG) services, commands approximately 7% market share by value in FY23. The company operates five manufacturing units, including cable and wires units in Waghodia (Gujarat) and Silvassa (Union Territory of Dadra and Nagar Haveli), a commercial lightings plant in Bengaluru, and FMEG units in Roorkee (Uttarakhand) and Gagret (Himachal Pradesh).
At 12:48 pm, RR Kabel’s stock was trading at Rs 1,525.45, reflecting investor confidence and optimism following the outstanding Q2 performance.
