The shares of one of India’s largest exporters of wires and cables rose 6 percent to Rs 1,490 per share after the company board approved the opening of a branch office in Dubai, followed by strong Q2 results.
With a market capitalization of Rs 16,550 crores, On Tuesday, R R Kabel Ltd shares were trading at Rs 1,466.95 a share, up 4.60 percent from the previous close price.
In a recent board meeting, the company board Approved the proposal to open a branch office in Dubai, United Arab Emirates.
According to the company’s exchange filing. R R Kabel Ltd reported a 17.7 percent increase in revenue year on year, from Rs 1,367.2 crore in Q2FY23 to Rs 1,609.2 crore in Q2FY24. During the same period, net profit increased by 111 percent from Rs 35 crore to Rs 74 crore.
In comparison to the previous quarter, operational revenue increased by 0.8 percent from Rs 735 crore in Q1FY24 to Rs 774 crore in Q2FY24, Further net profit has marginally reduced from Rs 74.3 crore to Rs 74.1 crore.
Revenue from the Wires and Cables segment registered around 24 percent growth in H1 FY24 compared to H1 FY23.
The company’s FMEG business segment continues to remain negative, due to higher fixed cost and lower capacity utilisation and EBIT improved due to an increase in the gross margin which is partly offset by indirect expenses.
According to the recent shareholding pattern, the company promoters hold a 62.76 percent stake in the company, while Domestic Institutional Investors hold an 8.66 percent stake. And retail investors have a 23.58 percent stake in the company.
R R Kabel Ltd is one of the leading companies in India’s consumer electrical industry (comprising wires and cables and FMEG). The company is the fifth largest player in the branded wires and cables market in India, representing approximately 7% market share by value as of FY23 (vs. 5% in FY15).
Written by Omkar Chitnis
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