India's RR Kabel profit more than doubles on strong cables, wires demand

R R Kabel

06/11/2023 16:09

BENGALURU, Nov 6 (Reuters) - India's RR Kabel  RRKA.NS 
profit more than doubled in its first quarterly report since
going public, benefiting from a sustained demand for its wires
and cables from the housing and construction industry.
    The company's consolidated profit increased to 741 million
rupees ($8.91 million) in the July-September quarter, compared
with 350.1 million rupees a year earlier, according to its
statement on Monday.
    "The company's strong sales growth has been underpinned by
the thriving real estate sector, robust infrastructure
development and a flourishing export market," Managing Director
Shreegopal Kabra said in a statement.
    According to analysts, the country's infrastructure demand
swelled in the quarter with sustaining momentum of government
spending, aiding profits at companies that supply products and
appliances for housing and construction.
    RR Kabel's consolidated revenue from operations rose almost
20% to 16.10 billion rupees, offsetting a nearly 15% climb in
total expenses, led by a spike in raw material costs.
    Revenue from the wires and cables business, which
contributed to 90% of the company's total revenue, grew around
20% to 14.50 billion rupees.
    RR Kabel competes with Havells India  HVEL.NS  and Polycab
India  POLC.NS , which also reported a surge in their quarterly
profits.
    Shares of RR Kabel, which went public on Sept. 20, have
gained about 17% since then.


($1 = 83.2071 Indian rupees)

 (Reporting by Hritam Mukherjee and Manvi Pant in Bengaluru;
Editing by Shilpi Majumdar)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))