RR Kabel soars 10% on strong Q2 performance; zooms 50% over its issue price

Shares of RR Kabel surged 10 per cent to a fresh high of Rs 1,550 on the BSE in Tuesday’s intra-day trade after the company reported a strong performance in September quarter (Q2FY24).

In Q2, its profit after tax (PAT) more-than-doubled to Rs 74.1 crore from Rs 35 crore in the year ago quarter. Revenue grew 17.7 per cent YoY at Rs 1,609.70 crore.

The stock surpassed its previous high of Rs 1,524.55 touched on October 5. Currently, it was quoting 50 per cent higher over its issue price of Rs 1,035 per share. The company made its stock market debut on September 20.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 92.7 per cent year-on-year (YoY) to Rs 121.1 crore in Q2; margin improved 293 bps to 7.5 per cent from 4.6 per cent in Q2FY23.

RR Kable is the leading consumer electricals player and 5th largest wires and cables (W&C) company in India with over 7 per cent market share (of the branded market) & strong presence in fast moving electrical goods (FMEG).

Throughout the past six months, RR Kabel has demonstrated a promising performance, marked by strong growth in its sales volume. This has been underpinned by the thriving real estate sector, robust infrastructure development, and a flourishing export market, the management said.

Meanwhile, the board has declared an interim dividend of Rs 3 per share (i.e at 60 per cent) on the equity shares of face value of Rs 5 each for FY24. The board also approved a proposal to open a branch office at Dubai, United Arab Emirates.