R R Kabel (RRKABEL) Q2 24/25 earnings summary

Executive summary

• Achieved highest ever quarterly and half-yearly revenue in Q2 FY25, driven by double-digit volume growth in domestic wires and cables and strong FMEG segment performance.

• FMEG segment maintained fastest growth among peers, with revenue up 24.5% year-over-year in Q2 FY25 and breakeven expected by early FY 2026.

• Wires & Cables (W&C) segment contributed 89% of revenue, while FMEG contributed 11%.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024.

• Interim dividend of ₹2.50 per share declared for FY 2024-25, with record date set for 1 November 2024.

Financial highlights

• Q2 FY25 revenue reached ₹1,810.1 Cr, up 13% year-over-year; H1 FY25 revenue was ₹3,618.2 Cr, up 12.8% year-over-year.

• Q2 FY25 EBITDA was ₹85.6 Cr (margin 4.7%); profit after tax stood at ₹49.5 Cr (margin 2.7%).

• FMEG segment revenue in Q2 FY25 was ₹198 crore, up 25% year-over-year; H1 FY25 FMEG revenue up 29%.

• Working capital days maintained at 63 as of September 30, 2024; net working capital days reduced to 29 as of Sep 2024.

• Basic EPS for Q2 FY25 was ₹4.39, compared to ₹6.66 in Q2 FY24.

Outlook and guidance

• Revised FY 2025 volume growth guidance to 10%-12%, with H2 FY25 expected to deliver 15% volume growth.

• EBIT margin for wire and cable segment expected to recover to 8%-8.5% in H2 FY25.

• FMEG segment expected to achieve breakeven at ₹1,100 crore topline, ahead of previous expectations.

• FMEG revenue growth guidance of 20%-25% for H2 FY25.

• Management does not anticipate any material adverse impact from ongoing income tax search proceedings.