Any current/future capex/capital investment/strategic investment?

The overall CAPEX plan is Rs.500 crores spread over FY'24 and FY'25, expected to be completed by March 2025. Current CAPEX execution is part of this master plan; no separate CAPEX plans specifically for Q3 or H2 FY'25. The company is doubling power cable capacity and increasing wire capacity by 20-25%, with major parts of this CAPEX cycle to be completed by end of FY'25. Some capacity expansion has already started; major power cable capacity enhancement will begin from April 2025. A next CAPEX cycle for the coming three years is in planning stages, with updates to be shared as progress

Future growth expectations in sales/revenue/volumes?

Wire and cable business volume growth guidance: - Expecting approx. 15% growth in H2 FY'25. - Yearly volume growth of 10-12% anticipated for FY'25. - Domestic cable growth projected at 25%, wire growth at 10% in H2. FMEG business revenue growth guidance: - Targeting 20-25% revenue growth in FMEG for next half-year. - Sustained volume increase across fans, appliances, and switches. Export market: - Short-term challenges due to shipment delays, but ongoing efforts to secure product approvals in Europe and U.S. - Export market contributes ~27% of revenue; expected to improve with n

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects 20-25% revenue growth in the FMEG business over the next half-year (Page 19). Wire and cable business guidance: 15% volume growth in H2 FY'25, aiming for 10-12% volume growth for full FY'25 (Pages 6, 12). EBIT margin improvement targeted to 8-8.5% in the wire and cable segment for H2 FY'25, recovering from a 6% margin in H1 (Page 7, 11). The FMEG business aims for breakeven by early FY'26, with expectations of cash flow breakeven at an annual run rate of Rs 1,500 crores (Pages 14, 19). Ongoing CAPEX of Rs 500 crores spread over FY'24 and FY'25 to support growth and capacity

IN US

Sale is live|00:00:00left today

R R Kabel LtdQ3 FY24Industrial Products

R R Kabel Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,488P/E: 43.6Market Cap: ₹22.1K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Wire and cable business volume growth guidance:
→ - Expecting approx. 15% growth in H2 FY'25.
→ - Yearly volume growth of 10-12% anticipated for FY'25.
→ - Domestic cable growth projected at 25%, wire growth at 10% in H2.
→FMEG business revenue growth guidance:
→ - Targeting 20-25% revenue growth in FMEG for next half-year.
→ - Sustained volume increase across fans, appliances, and switches.
→Export market:
→ - Short-term challenges due to shipment delays, but ongoing efforts to secure product approvals in Europe and U.S.
→ - Export market contributes ~27% of revenue; expected to improve with new product approvals.
→Overall revenue:
→ - Highest ever quarterly and half-yearly revenues reported in Q2 FY'25 with 13% YoY growth.
→CAPEX:
→ - Rs. 500 crore ongoing CAPEX plan spread over FY'24 and FY'25 to support growth.

Margin guidance

Category 3

→The company expects 20-25% revenue growth in the FMEG business over the next half-year (Page 19).
→Wire and cable business guidance: 15% volume growth in H2 FY'25, aiming for 10-12% volume growth for full FY'25 (Pages 6, 12).
→EBIT margin improvement targeted to 8-8.5% in the wire and cable segment for H2 FY'25, recovering from a 6% margin in H1 (Page 7, 11).
→The FMEG business aims for breakeven by early FY'26, with expectations of cash flow breakeven at an annual run rate of Rs 1,500 crores (Pages 14, 19).
→Ongoing CAPEX of Rs 500 crores spread over FY'24 and FY'25 to support growth and capacity expansion, particularly for power cables launching from April 2025 (Pages 14, 19).
→Domestic market growth and volume expansion are core drivers, with export challenges being addressed (Pages 4, 12).

3 more insights locked — sign up free to unlock

Fundraise plans

The transcript provided does not explicitly mention any current or future plans for fundraising through debt or equity. Key points related to financial plans include: - The company is executing an ongoing CAPEX plan of Rs. 500 crores spread over FY'24 and FY'25, expected to be completed by March 2025. - They are also actively working on their next CAPEX cycle for the coming three years but no details on funding methods were shared. - Focus is on capacity expansion and operational efficiency to drive growth and profitability. - No specific mention of new debt or equity issuance in the current earnings call. Therefore, as per the available information, there is no disclosed plan for new fundraising through debt or equity at this time.

Order book

The transcript provided does not explicitly mention the current or expected order book or pending orders for R R Kabel Limited. However, relevant supply chain and demand insights can be summarized: - Export shipments to Europe are experiencing delays, increasing transit from 25 to 35-40 days. - Some export orders shifted to nearby suppliers (e.g., Turkey) due to shipment delays. - No specific figures on order book or pending orders shared. - Domestic demand remains solid with continuous volume growth. - The company has sufficient demand from government and private sectors for cable products but has limited capacity to bid for large tenders like BharatNet currently. - Ongoing efforts to strengthen domestic sales, increase distribution depth, and secure new international product approvals (US market). If you require exact order book details, that information is not disclosed in this transcript.

Capex plans

Yes

→The overall CAPEX plan is Rs.500 crores spread over FY'24 and FY'25, expected to be completed by March 2025.
→Current CAPEX execution is part of this master plan; no separate CAPEX plans specifically for Q3 or H2 FY'25.
→The company is doubling power cable capacity and increasing wire capacity by 20-25%, with major parts of this CAPEX cycle to be completed by end of FY'25.
→Some capacity expansion has already started; major power cable capacity enhancement will begin from April 2025.
→A next CAPEX cycle for the coming three years is in planning stages, with updates to be shared as progress is marked.
→Strategic initiatives include new product launches, investments in brand transition, increased advertising, and obtaining product approvals in Europe and the U.S. to introduce higher margin products internationally.

How does R R Kabel Ltd rank vs peers in Industrial Products?

Pro feature

1R R Kabel Ltd

Rev 3Mar 3

See full Industrial Products sector rankings

Want more stocks like R R Kabel Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio