R R KabelQ3 FY24

R R Kabel Q3 FY24 Earnings Call Analysis

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

Price: ₹2,518P/E: 46.8Market Cap: ₹28.6K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • RR Kabel aims for consistent volume growth of around 20% year-on-year, supported by capacity expansions planned in phases.
  • Power cable capacity is being doubled (to about 1,000 tons/month), enabling potential doubling of cable revenue by FY26, if demand remains steady.
  • Domestic wire and cable volumes grew 12% in the latest periods; exports grew at about 36%, with exports contributing around 30% of total revenue.
  • Exports are shifting towards higher-value-added cables and special wires, improving margins.
  • New capacities coming in September 2024 target 20% volume growth without capacity constraints.
  • FMEG segment’s revenue grew about 20% over nine months, expected to grow faster than industry average (8-10%).
  • CAPEX of approximately Rs. 500 crores over FY24 and FY25 focuses on capacity expansions, including power cable, copper wire, eBeam and PVC compound facilities, fueling future growth.
  • Overall, the company targets sustainable double-digit volume and revenue growth over the next 2-3 years.

See what R R Kabel management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • The company has outlined a comprehensive CAPEX plan of Rs. 500 crores over FY24 and FY25.
  • This CAPEX includes doubling power cable capacity, expanding copper wire production, introducing an eBeam facility, and setting up a PVC compound manufacturing facility.
  • The entire CAPEX plan is stated to be self-funded, indicating no immediate need for external debt or equity fundraising.
  • There is ongoing planning for CAPEX in FY26 and FY27, but no explicit mention of raising funds through debt or equity for these periods as of this call.
  • The company aims to support its growth and expansion primarily through internal accruals and sound financial management.

See what R R Kabel management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Committed CAPEX of Rs. 500 crores over FY24 and FY25.
  • Focus on doubling power cable capacity (from 1000 tons/month to 2000 tons/month over next year).
  • - 500 tons per month capacity to be operational by September 2024.
  • - Remaining capacity by March 2025.
  • Expansion of copper wire production capacity by approximately 20%-25%.
  • Introduction of an eBeam facility.
  • Establishment of PVC compound manufacturing facility.
  • Future CAPEX plans for FY26 and FY27 are under finalization, aligned with ongoing volume growth targets.
  • All CAPEX will be self-funded.
  • Strategic investments aim to support 20% year-on-year volume growth, improve product range, delivery timelines, and enhance margins.

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

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