R R Kabel Q4 FY25 Earnings Analysis

- Q4 FY25 volume growth guidance is approximately 15%, aiming for full-year volume growth of 10-12%. (Page 6) - Nine-month volume growth currently around 6%, supported by improving demand in wire and cable segments. (Page 6) - Capex of INR 500 crores over two years underway to expand capacity, with potential to add INR 2,500 crores in top-line by FY26-FY27. (Pages 8-9,16) - Revenue contribution from cable segment targeted to increase from 30% to 35%. (Page 5) - Export growth expected to normalize and improve with new certifications and global market expansion, including U.S. and Europe. (Pages 7,10) - Long-term focus on doubling EBITDA margins by FY28, backed by product mix improvement and scale benefits. (Pages 14,13) - Continuous growth expected in FMEG segment (fans, lights, appliances) with breakeven expected by Q1 FY26 (June 2025). (Page 16) - Capacity utilization: Wire at 65-70%, Cable at 90-95%, implying room for volume growth with upcoming capacity additions. (Page 17)

- Q4 FY '25 volume growth guided at 15%, aiming for overall FY '25 volume growth of 10-12%. - Capex in progress to add potential top-line growth of INR 2,500 crores, supporting FY '26 and '27 expansion. - Target to reach double-digit EBITDA margins by FY '28 at both cable/wire segment and company level. - FMEG segment expected to break even at EBITDA level by Q1 FY '26 (June '25 quarter). - Improved margin outlook with cable EBIT margin expected to rise from 7% in Q3 to ~8% in Q4 FY '25. - Copper price volatility impact is transient; margins projected to improve with stable commodity prices. - Strategic focus on product mix, exports, and premium products to drive margin expansion and growth. - Detailed long-term growth vision and financial guidance to be provided by next quarter.

- Current capex plan of INR 500 crores till FY '25, nearing completion by March 2025, with some capacity additions in Q3 FY '25, especially in power cable. - Future capex of approximately INR 1,200 crores planned over next three years (FY '26 to FY '28), focused mainly on brownfield expansion at Waghodia near Vadodara. - Around 80% of this future capex will be directed toward cable capacity expansion. - The new capex is expected to support incremental revenue of INR 4,000 to INR 4,500 crores, with a typical capex return multiple of 3x to 3.5x in cables. - Capex will enable a potential top-line growth of around INR 2,500 crores in FY '26 and FY '27. - No major capex planned in FMEG; limited to INR 20-25 crores as majority of FMEG revenues are sourced via third party. - Strategic focus on increasing export share in cable segment aided by certification pursuits in Europe and USA.

- The transcript does not explicitly mention any current or planned fundraising through debt or equity. - Discussion focused mainly on capex plans totaling INR 1,200 crores over the next three years (FY '26 to FY '28), primarily for brownfield expansion in cable capacity. - Capex is expected to be funded through internal accruals or existing financial resources; no mention of raising fresh funds. - No direct comments or guidance related to new debt or equity issuance were provided in this earning call transcript.

- R R Kabel Limited does not maintain a long-term order book typical for 1-3 years due to a significant portion of its business being B2C. - The order inflow for the company is more continuous and project-based rather than being tied to long-duration contracts. - Because of the B2C nature and ongoing projects, there is no sizable or fixed order backlog. - The company focuses on fulfilling orders as they come, implying that the order book is dynamic and not fixed. - Detailed guidance on future order book or revenue projections is expected to be shared in the next quarter as part of their detailed vision and growth plan.