(Reuters) -India’s R R Kabel reported a 64% rise in fourth-quarter profit on Friday, buoyed by strong demand in its core wires and cables segment.
The company’s consolidated profit climbed to 1.29 billion rupees ($15.31 million) in the three months ended March 31 from 787 million rupees a year earlier.
Revenue from operations rose 26.4% year-on-year to 22.18 billion rupees.
Its wires and cables segment, which contributes 88% to the total revenue, grew about 28% from a year ago.
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KEY CONTEXT
Favorable weather in the January-to-March period can drive up construction activity.
Demand surged for the high-margin cables and wires during the quarter, the company said. Favorable prices of copper, a key raw material, and capacity expansion also aided profit growth, it said.
In the company’s electrical goods segment, which sells appliances and makes up about 12% of overall sales, revenue grew by 13% in the fourth quarter, led by fans and switches.
Rival Polycab India will report its results next week.
PEER COMPARISON
Valuation (next 12 months) Estimates (next 12 months) Analysts’ rating
RIC PE EV/EBITD Price/Sa Revenue growth Profit Mean # of Stock to price Div yield
A les (%) growth(%) rating* analysts target** (%)
R R Kabel Ltd 30.24 18.93 — 15.75 46.65 Strong Buy 8 0.72 0.48
Polycab India Ltd 35.48 24.11 2.87 17.42 21.07 Buy 24 0.83 0.54
Havells India Ltd 54.81 36.28 4.00 14.16 21.28 Buy 25 0.89 0.62
V Guard Industries Ltd 38.04 24.23 — 13.72 25.20 Buy 15 0.82 0.39
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 84.2780 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Sahal Muhammed)
