RR Kabel Q3 Results Review - Soft Revenue Growth, Margins Contracted: Prabhudas Lilladher

Prabhudas Lilladher Report

RR Kabel Ltd. reported soft revenue growth of 10.4% YoY in Q3 FY24 mainly with wire and cable revenue growth of 9.2% driven by export business (+36.7% YoY) while domestic wire and cable revenue was flat YoY.

The company reported ~19.4% volume growth in 9M FY24 and expects healthy growth (20%+) in coming quarter, as strong momentum started in Dec-23 will continue in domestic W&C segment.

Ebitda margin at 6.9% was mainly from change in product mix and increase in export revenue. We continue our positive view on RR Kabel on account of-

1. strong brand with diverse product portfolio,

2. well-structured capacity expansion plans,

3. focus of increasing sales per dealers /distribution and

4. healthy growth in fast moving electrical good segment.

We downward revised our FY25E/FY26E earnings estimates by 2.4%/0.8% and estimate revenue/Ebitda/profit after tax compound annual growth rate of 20.7%/40.1%/46.0%.

Maintain ‘Buy’ with revised target price of Rs 1,857 (Rs 1872 earlier) given strong guidance for coming years.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.