RR Kabel (RRK), the leading consumer electricals player & strong presence in Fast Moving Electrical Goods (FMEG) has announced its Unaudited Financial Results for the quarter and half year ended on September 30, 2024.
Revenue from the W&C segment saw 11% growth in Q2 FY25 compared to Q2 FY24, driven by volume expansion along with increased in average realization. Segment margin decreased by 4% in Q2 FY25 compared to Q2 FY24 mainly due to a reduction in contribution margin on account of high volatility in metal prices
Revenue grew by 25% in Q2FY25 over Q2FY24, driven by strong volume growth mainly in Fans, Appliances and Switches. Segment margins improved by 6.6% in Q2 FY25 compared to Q2 FY24, primarily due to increase in contribution margins on higher sales and product mix.
Commenting on the Results, Shreegopal Kabra, MD said, “RR Kabel has delivered its highest-ever quarterly and half-yearly revenues, despite overall moderate volume growth. The Wires & Cables business in the domestic market achieved strong double-digit volume growth, while the FMEG segment recorded solid revenue performance, driven by robust volume growth and an improved product mix, maintaining its position as the fastest-growing among peers. Despite challenges like global shipment delays and higher commodity prices, demand has remained stable. Looking ahead, we expect margin improvements in the second half of the year, with our capex plans progressing as scheduled and set for completion by the fiscal year-end. We are also focused on our long-term vision of achieving double-digit EBITDA margins, breakeven in the FMEG segment, capacity expansion, and diversifying into newer and emerging market opportunities”.
