RR Kabel Limited reported a 33% drop in profit for the second quarter, attributed to rising copper prices and a decline in demand for electrical goods. The company’s consolidated profit for the quarter ending September 30 fell to ₹49.53 crore ($5.9 million), down from ₹74.1 crore the previous year. Despite this decline, revenue increased by 12.5% to ₹1,810 crore, while expenses surged to ₹1,757 crore from ₹1,520 crore, primarily due to a 7% rise in raw material costs.
The demand for cables and wires remains strong, particularly in real estate and infrastructure projects, supported by government initiatives aimed at stimulating the economy and promoting affordable housing. However, the sharp increase in key raw material prices, especially copper, has negatively impacted the earnings of consumer goods manufacturers. Copper prices, which reached record highs earlier in the year, have increased over 10% in 2024.
RR Kabel also experienced a decline in profit during the first quarter as expenses continued to rise. Analysts have observed that the demand for fast-moving electrical goods, such as fans and coolers, has weakened due to inflation and a seasonal slowdown after the summer months.
Commenting on the results, Managing Director Mr Shreegopal Kabra stated, “RR Kabel has achieved its highest-ever quarterly and half-yearly revenues, despite moderate volume growth overall. Our Wires & Cables segment in the domestic market demonstrated strong double-digit volume growth, while the FMEG sector showed solid revenue performance, driven by robust volume growth and an improved product mix, maintaining its position as the fastest-growing in its category. Despite challenges like global shipment delays and rising commodity prices, demand remains stable. Looking ahead, we anticipate margin improvements in the second half of the year, and our capital expenditure plans are on track for completion by the fiscal year-end. We are committed to achieving double-digit EBITDA margins, breakeven in the FMEG segment, expanding our capacity, and diversifying into new and emerging markets.”
RR Kabel Limited is a leading consumer electrical company in India with over 25 years of operational history. It stands as the largest exporter of wires and cables in the country, providing a diverse range of electrical products, including wires and cables, fans, lighting, and electrical accessories for residential, commercial, industrial, and infrastructural applications.
Committed to quality and innovation, the company’s products adhere to global standards, ensuring safety and reliability. RR Kabel continues to focus on creating high-quality products utilizing the latest advancements in wire design and engineering, with its offerings certified for compliance with national and international standards, including REACH and RoHS directives. Extensive research and development efforts ensure that its products meet global safety guidelines.
