Share of wire and cable manufacturing companies rises to 13% as RR Kabel posted strong Q4 results and guidance, RR Kabel shares rise 13%, KEI Industries surges 3%, and Polycab shares also rise to 4% 

Q4 results of RR Kabel

RR Kabel reported a massive 64% surge in consolidated net profit to Rs 129.1 crore for Q4FY25. This was driven by strong demand in the cable and wire segment. RR Kabel's revenue rises by 26.4% YOY to Rs 2,218 crore, and RBITDA of the wire manufacturer rises by 69% to Rs 194 crore. EBITDA margins of the company also improved to 8.7% from 6.5% in Q4FY25, and the board approved a dividend of Rs 3.50 per equity share. 

Management commentary 

RR Kabel Shreegopa Kabra, the managing director of the company, noted the focus on scaling up cable and volumes and sustaining growth in wire and cable. 

Management further said:

• Strong demand for wires and cables: Increased demand in the core wires and cables segment and which contributed significantly to the revenue and profit growth
• Strategic capacity expansion: The company's focus on expanding production capacity allowed it to capitalize on the increased demand
• Favorable copper prices: Shreegopal Kabra mentioned that favorable copper prices also contributed to the improved profitability 

Effect on other wire and cable sector companies

Following this strong Q4 results and management commentary of RR Kabel, shares of KEI Industries and Polycab Limited surge 4% intraday,

KEI India shares surge by 4.30% and are trading at Rs 3,150 per share on NSE, and Polycab shares rise 3.40% and are trading at Rs 5,653 per share on NSE. Polycab will declare its March quarter results by tomorrow. 

Disclaimer: This article is only for educational and informational purposes