India's R R Kabel profit slips as higher costs weigh

R R Kabel

29/01/2024 14:00

BENGALURU, Jan 29 (Reuters) - India's wires and cables
maker R R Kabel  RRKA.NS  reported a third-quarter profit slide
on Monday, as higher costs dented the impact of strong demand
from the real estate sector. 
    The company's consolidated profit slipped 0.7% to 709.6
million rupees ($8.5 million) in the quarter ended December,
according to an exchange filing. 
    The profit drop comes after R R Kabel's bottomline
more-than-doubled in the second quarter. The company listed its
shares in September 2023. 
    A 5% year-on-year rise in copper prices, a key raw material,
spiked total expenses by nearly 12%, eclipsing a 10% rise in
revenue from operations. 
    India's cables and wires makers are benefitting from a
demand surge in housing and construction sectors, helped by the
government's infrastructure push ahead of national polls this
year. 
    Rivals Havells  HVEL.NS  and Polycab India  POLC.NS  have
posted 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)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))