R R Kabel (RRKABEL) Q4 23/24 earnings summary

Executive summary

• FY24 delivered record revenue, operating EBITDA and PAT, with growth led by Wires & Cables and stronger FMEG sales; gross margin and operating efficiency improved.

• Wires & Cables accounted for 88% of revenue and FMEG 12%; exports reached 26.45% of revenue across 67 countries.

Financial highlights

• Consolidated revenue from operations rose 17.8% YoY to ₹6,594.6 crore; gross profit increased 21.7% to ₹1,245.7 crore and gross margin rose to 18.9% from 18.3%.

• EBITDA increased 43.2% to ₹462.8 crore; EBITDA margin expanded to 7.0% from 5.8%. EBIT rose 54.3% to ₹459.9 crore.

• PBT grew 58.6% to ₹406.1 crore; PAT rose 57.0% to ₹298.1 crore, with PAT margin at 4.5% versus 3.4%. Consolidated EPS was ₹26.62 basic and ₹26.57 diluted.

• Operating cash flow was ₹338.99 crore; cash and cash equivalents closed at ₹81.49 crore, versus ₹31.03 crore a year earlier.

Outlook and guidance

• Self-funded capex of ~₹500 crore, planned across FY24 and FY25, is expected to expand capacity and support revenue from FY26 onward; additional projects are under consideration for the next two years.

• Wires & Cables plans moderate growth and higher EBIT margins in FY25 through cost efficiencies and improved product mix; export reach is to expand through certifications and electrification projects.

• FMEG aims for breakeven through distribution expansion, procurement efficiency and premium product launches; lighting structural changes and price erosion may persist through FY25, with reversal expected by FY26.

• FMEG market growth is forecast at 7–8% over the next 3–5 years; appliances and switchgear are projected to grow 8–10% annually.