India's R R Kabel Q1 profit falls as costs surge

R R Kabel

30/07/2024 13:03

BENGALURU, July 30 (Reuters) - India's R R Kabel  RRKA.NS  posted a 13.4% fall in first-quarter profit on
Tuesday as a rise in expenses hurt margins.
    The company's consolidated profit fell to 643.8 million rupees ($7.7 million) for the three months ended June
30, from 743.5 million rupees a year earlier.
    Total expenses surged about 15%, overshadowing a 13% rise in revenue from operations.
    For the full result highlights, click: [Full story]
    
KEY CONTEXT
    Wire and cable companies continue to see strong demand from the housing sector, which is in the middle of a
boom. This has helped offset a weakness in infrastructure due to slowdown in construction activities owing to
general elections, analysts have said.
    However, higher prices of key raw materials, including copper and aluminum, have taken a large bite off of the
consumer durable goods makers bottomline.
    Rival Polycab India  POLC.NS  reported a drop in first-quarter profit while Havells India  HVEL.NS  missed
quarterly profit estimates on higher expenses.
    Crompton Greaves Consumer Electricals  CROP.NS  is expected to report June-quarter results on Wednesday.
    
PEER COMPARISON

                                     Valuation      Estimates (next 12           Analysts' sentiment          
                                     (next 12            months)                                           
                                      months)                                                              
                           RIC      PE    EV/EBI   Revenue      Profit      Mean     # of      Stock to      Div
                                           TDA    growth (%)  growth (%)   rating*  analyst     price       yield
                                                                                       s       target**      (%)
       R R Kabel         RRKA.NS   44.42  29.65     19.09        36.64     Strong     10         0.91       0.34
                                                                             Buy                           
    Polycab India        POLC.NS   46.07  32.17     18.00        18.92       Buy      24         0.95       0.46
    Havells India        HVEL.NS   64.94  44.82     20.06        26.90       Buy      21         0.97       0.49
   Crompton Greaves      CROP.NS   44.20  29.41     12.20        30.91       Buy      31         1.03       0.68
 Consumer Electricals                                                                                      
 
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

* Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
APRIL-JUNE STOCK PERFORMANCE
    
 
   
    
-- All data from LSEG
-- $1 = 83.6990 rupees
    

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RRKA Q1 STX PERFORMANCE    https://tmsnrt.rs/3WopgCs
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 (Reporting by Dimpal Gulwani and Ashna Teresa Britto in Bengaluru)
 ((Dimpal.Gulwani@thomsonreuters.com;))