R R Kabel Limited — Investor Meet, 01-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** R R Kabel reported Q3 FY '25 revenue of ₹1,782 crore, up 9.1% year-on-year, marking their highest ever revenue for the nine-month period at ₹5,400 crore, reflecting a 12% increase. The wire and cable segment grew revenue by ₹1,543 crore (8% YoY), while the FMEG segment saw impressive growth of around 25%. Operating EBITDA was ₹111 crore, with a PAT of ₹68.6 crore, indicating slight margin compression due to volatile commodity prices earlier in the fiscal year. Nevertheless, a sequential margin increase suggests stabilization.

**Future Outlook and Growth Drivers:** Management remains focused on attaining double-digit EBITDA margins in future years through operational efficiencies and an improved product mix. They also plan to boost the share of cables in total revenue from 30% to 35%, while working towards breakeven in the FMEG segment by early FY '26.

**Order Book and Operational Updates:** Capacity expansion initiatives are ongoing, with a capex plan of ₹1,200 crore over the next three years aimed at achieving an additional revenue boost of ₹4,000-4,500 crore annually. The domestic market showed resilience with 6% YoY growth in Q3, while exports grew by 11%.

**Analyst Q&A Insights:** Analysts expressed concerns over wire segment growth amid price volatility and economic conditions. Management anticipates a 10-12% volume growth for FY '25, particularly in Q4, with a focus on strengthening market presence despite existing challenges.

**Market or Regulatory Updates:** The geopolitical situation has affected exports, but management expects recovery as freight charges decline. Additionally, with increasing government expenditure anticipated in infrastructure, a resurgence in cable demand is expected.

**Strategic Focus Areas:** Key themes include enhancing product offerings and increasing distribution efficiency. Management's tone reflects confidence in recovering volumes and stabilizing margins.

**Investor Insight:** Financial metrics and growth strategies suggest the outlook is aligned with a ‘buy’ position. Investors should monitor market dynamics, particularly in commodities and government spending, as these will impact future performance.