India's R R Kabel posts lower quarterly profit on high copper prices (updated)

R R Kabel

29/01/2024 15:18

(Adds details on results in paragraph 6)
       BENGALURU, Jan 29 (Reuters) - Wires and cables maker R R
Kabel  RRKA.NS  reported a lower third-quarter profit on Monday
as high copper prices offset strong demand from the real estate
sector.
    The company's consolidated profit fell 0.7% to 709.6 million
Indian rupees ($8.5 million) in the quarter, according to an
exchange filing.
    R R Kabel listed its shares in September last year.
    Prices of copper, a key raw material for the company, rose
5% during the third quarter, increasing R R Kabel's total
expenses by nearly 12%.
    Cables and wires makers in India are benefiting from a surge
in demand from the housing and construction sectors, helped by
the government's infrastructure push ahead of national polls
this year.
    R R Kabel's core profit margins fell 119 basis points to
6.9% in the third quarter. 
    Rivals Havells  HVEL.NS  and Polycab India  POLC.NS 
reported higher profits in the December quarter. Finolex Cables
 FNXC.NS  will report its results next month. 
    Shares of R R Kabel, which have fallen about 6% so far this
year, closed 0.8% higher ahead of the results. 
    
 ($1 = 83.1230 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank
Dhaniwala and Shounak Dasgupta)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam))