The shares of the prominent cable manufacturer gained up to 17 percent in today’s trading session after the company’s net profit and revenue increased by 87 percent and 25 percent QoQ, respectively, in Q4.
With a market capitalization of Rs 13,228.40 crore, the shares of R R Kabel Ltd were trading at Rs 1,169.90 per share, increasing around 14.07 percent as compared to the previous closing price of Rs 1,025.60 apiece.
Matter Explanation
The shares of R R Kabel Ltd have seen positive movement after reporting positive results in Q4FY25, Revenue increased by 25 percent on a quarter-on-quarter basis from Rs 1,782 crore in Q3FY25 to Rs 2,218 crore in Q4FY25. Further, revenue increased by 27 percent year on year, from Rs 1,754 crore in Q4FY24 to Rs 2,218 crore in Q4FY25.
The company’s net profit increased by 87 percent on a quarter-on-quarter basis, from Rs. 69 crore in Q3FY25 to Rs. 129 crore in Q4FY25. Further, net profit magnified significantly by 63 percent year on year from Rs 79 crore in Q4FY24 to Rs 129 crore in Q4FY25.
The company posted a strong FY24-25 performance, with revenue surging 15 percent from Rs 6,595 crore to Rs 7,618 crore. Net profit jumped 5 percent, from Rs 298 crore to Rs 312 crore, reflecting growth and improved profitability over the previous financial year. The board also announced a final Dividend of Rs. 3.50 per share on the equity shares of face value of Rs. 5 each.
Also read: AI stock skyrockets 18% after announcing strong Q4 results; Recommends 125% dividend
Future Outlook
RR Kabel plans to add 36,000 MT of capacity for wires and cables at its Waghodia plant in Gujarat by March 2028 in phases, with an investment of Rs 1,050 crore, which will be funded through a mix of internal accruals and debt.
The company also plans to expand its upcoming units with an investment of Rs 400 crore in Silvassa and Daman & Diu by adding 6,000 MT capacity by December 2026. This is over and above the already initiated 12,000 MT, which is scheduled to become operational in phases by March 2026.
RR Kabel, under its three-year roadmap “Project R Rise,” aims to grow its wires and cables business at an 18% CAGR, expand exports to 1.8 times the current level, and increase manufacturing capacity to 1.7 times its existing scale.
R R Kabel Limited is an India-based consumer electrical company, engaged in manufacturing and selling wires and cables, including house wires, industrial wires, power cables, and special cables, and fast-moving electric goods (FMEG), including fans, lighting, switches, and appliances.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
