BENGALURU (Reuters) – India’s RR Kabel profit more than doubled in its first quarterly report since going public, benefiting from a sustained demand for its wires and cables from the housing and construction industry.
The company’s consolidated profit increased to 741 million rupees ($8.91 million) in the July-September quarter, compared with 350.1 million rupees a year earlier, according to its statement on Monday.
“The company’s strong sales growth has been underpinned by the thriving real estate sector, robust infrastructure development and a flourishing export market,” Managing Director Shreegopal Kabra said in a statement.
According to analysts, the country’s infrastructure demand swelled in the quarter with sustaining momentum of government spending, aiding profits at companies that supply products and appliances for housing and construction.
RR Kabel’s consolidated revenue from operations rose almost 20% to 16.10 billion rupees, offsetting a nearly 15% climb in total expenses, led by a spike in raw material costs.
Revenue from the wires and cables business, which contributed to 90% of the company’s total revenue, grew around 20% to 14.50 billion rupees.
RR Kabel competes with Havells India and Polycab India, which also reported a surge in their quarterly profits.
Shares of RR Kabel, which went public on Sept. 20, have gained about 17% since then.
($1 = 83.2071 Indian rupees)
(Reporting by Hritam Mukherjee and Manvi Pant in Bengaluru; Editing by Shilpi Majumdar)