
R R Kabel Q3 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
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 analysisRevenue 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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What R R Kabel's management said in earlier quarters
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