R R Kabel Ltd (NSE: RRKABEL) Q4 2025 Earnings Call dated May. 05, 2025
Corporate Participants:
Unidentified Speaker
Shreegopal Kabra — Managing Director, Executive Director
Rajesh Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Darshani Desai — Analyst
Naushad Chaudhary — Analyst
Charanjit Singh — Analyst
Praveen Sahay — Analyst
Rahul Agarwal — Analyst
Natasha Jain — Analyst
Shrinidhi Karlekar — Analyst
Vidit Trivedi — Analyst
Aryan Jain — Analyst
Nikhil Purohit — Analyst
Naman Parmar — Analyst
Presentation:
operator
SA. It’S. Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of RR Cable Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing STAR and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Darshani Desai from MUFGN Time, the investor relations. Thank you. Over to you, Ms. Darshani.
Darshani Desai — Analyst
Thank you. Good afternoon everyone. On behalf of Ara Travel Ltd. I extend a very warm welcome to all participants on Q4 and FY25 earnings conference call or of RR Carbon Limited today. On this call we have Mr. Shrigopal Kabra, Managing Director and Mr. Rajesh Jain, Chief Financial Officer. Before we begin this call, I would. Like to give a short disclaimer. This call may contain some of the forward looking statements which are completely based. Upon our beliefs, opinions and expectations. As of today, these statements are not guarantees of our future performance and involve. Unforeseen risks and uncertainties. With this, I hand over the call. To Sri Rupal Kabaraji. Over to you sir. Thank you.
Shreegopal Kabra — Managing Director, Executive Director
Thank you. Hello everyone and good afternoon. On behalf of our company Limited I extend a very warm welcome to all participants on our Q4 and FY25 financial results discussion call. On this call I have with me our CFO Mr. Rajesh Jai. FY21 FY25 has been a dynamic year filled with both challenges and meaningful achievements that have strengthened our resilience and positioned us for continuous growth. With revenue from operation and dead ETA margins reaching its highest level among all quarters of FY25, we have made a strong recovery from the previous quarter and an improved YOY numbers making a significant upward trajectory.
This momentum has been driven by substantial volume growth in both wires and cable and smog segments, solidifying our position as a leading player in the industry. Looking ahead, we see strong potential for continued growth in wires and cable segments driven by expansion, targeting new markets, the launch of new products and optimized product mix, all of which we are expected to contribute to achieve revenue growth and sustained margin expansion. We are equally focused on growth and profitability of our ecommerce segment and have made continuous initiatives in expanding our presence in this segment through enhanced advertising efforts and focused brand transition strategy.
This past quarter we significantly enhanced our brand visibility through a high impact sponsorship including a multi year principal partnership with Kolkata Knight Risers kkr. In addition, Alta Signature proudly became the principal sponsor of UP Media for the Women’s Premier League WPF 2025. This resolution underscored our belief in growth, progress and pushing boundaries, amplifying brand recall and asserting our reach across key markets. In line with our history of creating value for our shareholders and constantly paying dividends, it pleased me to announce that the Board of Directors of the company have approved a dividend of rupees 3.5 per share, 70% of their salute.
With this, I would like to hand over the call to Mr. Rajesh Jain to take this call further.
Rajesh Jain — Chief Financial Officer
Thanks Shri Gopaljee as we look ahead, we are optimistic about the broader economic environment. With India’s GDP projected to grow at a healthy 6.5% for FY25 26, the wires and cables industry, which typically outpaces GDP growth, is poised for robust expansion. Currently valued at Rupees 90,000 crore, the industry is expected to grow at a CAGR of 15% and reach approximately Rupees 2 lakh corrodes by FY31. The wire and cable industry continue to experience dynamic expansion reflecting the substantial growth potential inherent in this sector. With the industry growing at nearly twice the rate of gdp, the increasing participation of new intrents signals robust demand and a promising future in this evolving landscape.
Every brand including RR Kabel, brings a distinct value proposition and we believe there is ample room for all the players to grow and succeed together. Now let’s discuss the financial and operational highlights of Q4 and FY25. The Wire and cable segment continues to be the cornerstone of our business, delivering strong performance and driving substantial growth in Q4. This segment recorded the highest volume growth of the quarter and at 24% sequentially and approximately 14% year on year reflecting strong market demand. Wires and cables demand was robust in both domestic and export market. After 2/4 of relatively subdued demand for FY25, this segment contributed a remarkable 88% of our revenue from operations.
Our revenue for Q4 FY25 stood at Rupees 2,218 crore reflecting a growth of approximately 26.4% year on year. We have posted a consolidated revenue of rupees 7618 crores for FY25 marking a 15.5% annual growth. EBITDA for the quarter grew by 69.4% year on year reaching rupees 196 crore with a margin of 8.8%, the highest margin during the year and amongst the highest in our company history. The margin expansion was supported by a favorable operating device and contained operational expenses. Aligning with our earlier guidance of achieving double digit EBITDA margin, PET stands at rupees 129 crore, an increase of 64% year on year and at its 8.3% quarter on quarter with margin expansion of 133 and 197 basis points respectively.
For the full financial year our EBITDA reached rupees 488 crore and PET reached rupees 312 crore reflecting growth of 5.4% and 4.5% respectively. Overall, a strong Q4 has significantly uplifted our XY25 performance compared to the first nine months. Let me now turn to our segment wise performance. Our wire and cable business recorded a revenue of rupees 1956 crore in Q4FY25 compared to rupees15.23 crores in Q4 of FY24 a growth of 28.4% year on year. For the full year revenue stood at Rupees6,689 crores versus 5,830 crores last year up by 14.7% quarterly. An annual growth in the wire cable segment was driven by a balanced contribution from volume and value growth on a sequential basis.
Growth was purely volume led. Segment profit grew 47.1% year on year and 80.6% quarter on quarter reaching rupees 194 crore. Our export business contributed 26% to our total revenue in FY25, stable compared to FY24 in absolute terms exports grew by 11% year on year despite global uncertainty, a testament to our strong international Strategy. In the Smeg segment, revenue reached rupees 262 crores in Q4 and 929 crores in FY25 marking 13.3% and 21.5% growth respectively. As highlighted earlier, this segment has shown clear progress in both profitability and growth. We reduced losses in SLG by approximately 33% down by Rs.
23 crores from FY24 up, a strong sign of improving operational efficiency and effective strategy execution. We remain committed to achieving breakeven in FY26. The company has also been consistently improving its working capital cycle from 88 days in FY22 to 56 days in FY25. This was achieved through reduction in inventory and receivables and an increase in payables even by our long term efforts to enhance efficiency. Now I would like to talk about our Strategic Vision for the next three years RR Kabel is embarking on a focused three year growth journey under the strategic initiative Project Rise.
This vision is anchored on accelerating growth in both the YSM cables and SMEG segments with the goal of transforming our revenue and profitability profile over the next three years. We aim to deliver a wide cable revenue figure of 18% and SMG revenue CAGR of 25% together driving a 2.5x growth in EBITDA. This will be achieved through a multi pronged approach balancing organic expansion, export leadership, margin improvement and capacity enhancement. A key part of our strategy is to grow our domestic wire and cable business to 1.6x by leveraging the resurgence in real estate, increasing demand from the data center, renewables and industrial capex.
We aim to scale our cable business while maintaining a high quality value focused portfolio. Simultaneously, our SMH segment will maintain its fastest growth position supported by a shift towards premium products and better channel efficiency. We are also strengthening our export business targeting 1x growth by leveraging our strong brand equity in India’s favorable trade dynamics. Entry into new markets and categories will further enhance our global competitive edge. To support this trajectory, we are investing in manufacturing with a 1.7x increase in capacity at Silvaka and Wagodia. This will help us to meet rising demand efficiently while ensuring quality and scale Margin improvement will be a critical driver of sustainable growth in iron cable.
This will be achieved through a rebalanced product mix and scale efficiency in smeg. Our focus remains on higher margin products and efficiencies across procurement, factory operations and supply chain. Project life represents a more focused strategy to accelerate our cabin’s growth trajectory. By driving strong revenue, global presence and operational excellence, the company is laying the foundation for long term value creation. With clearly defined initiatives and measurable targets, RR Kabez is poised to emerge stronger, more competitive and future ready. We have already Begun executing our 1,200 crore capex plan in FY26 to FY28 primary aimed to increase cable capacity to support a 15 to 20% volume growth and margin improvement.
These initiatives reflect our commitment to delivering high quality environmentally competent product while building a robust scalable platform for the future. Looking ahead, our long term growth will be supported by structural driver and expanding share to the organized market and government initiatives. We are focused on operational excellence, smart innovation and future ready products. At the same time we are strengthening our brand recall through target paid marketing and strategic visibility. Our commitment to distribution expansion and electrician engagement positions us well to capture emerging opportunities and sustain growth encouraging Macro signals combined with our internal strength give us confidence in our outlook for the years ahead.
With this I would request to open the floor for questions and answers. Thank you so much. Can we have questions and answers now?
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Praveen Shahi from PL Capital. Please go ahead sir, the current participant has been disconnected. We’ll move on to the next participant.
The next participant is Naushik Chaudhary from Aditya Birla Capital. Please proceed.
Naushad Chaudhary
Hi, thanks for the opportunity and congrats on a decent set of number. First on the capex announcement of 1050 crore with 36,000 ton capacity. So this despite being brownfield expansion and assuming in a best case we reached a full utilization of 36,000. Assuming thousand rupees per kilogram realization we get around three and a half thousand crore rupees of revenue. So looking at our historic number versus our peers the asset turnover of this investment looks very low. Sir, how should we look at it? Look at this if you can explain.
Rajesh Jain
So see you have to see our expansion plan in totality we have, you know statics at Silver as well as Magodia also and and which is combined of around 1200 crores new expansion apart from 500 capex what we have announced and it is on the verge of completion in this year majority part was already executed and with this capex we are targeting like top line growth of around 5,400. Sorry 4,500 crores which is around 3.5x. See if you see in within Vyan cable like wires have different asset turn and cable have lesser asset turn. So with the combination of this we are targeting to achieve 3.5x as a.
Naushad Chaudhary
Okay. Second was there any inventory gain in this quarter? Sir,
Rajesh Jain
I will not say inventory gain but since the copper prices or rather metal sizes were on upper trend always whenever there is upper trend we get like first it is always good and we see a very good upliftment in demand stroking of traders and sometimes since we have like capability or we need to pass on this tight impact so there is a little bit always the word command is always positive or helpful to us in improving margins but the majority of the margin improvement due to our volume growth only.
Naushad Chaudhary
Okay. And your staff cost also looks substantially improved. If I look at sequentially Also last quarter 90 crore run rate which has come down meaningfully despite such a big volume growth. How do you explain this sir? And should we look at this as a new normal for the company?
Rajesh Jain
So it’s just cost first we cannot compare in percentage terms because it depends on the like though my volume may increase and the fixed cost may remain the same. So at that level in percentage terms it may have come down but optimally it will be like on current levels only.
Naushad Chaudhary
Even in absolute term it has come down.
Rajesh Jain
So yeah, there may be some changes in some provisioning or something like that. Otherwise it is like normal norms only.
Naushad Chaudhary
Sure, I will come back in the queue. Thank you so much.
Rajesh Jain
Thank you.
operator
Ladies and gentlemen, in order to ensure that the management is able to address the questions from all the participants in the conference please limit your questions to two per participant. The next question is from the line of Charanjit Singh from from DSP Im. Please proceed sir.
Charanjit Singh
Hello sir. Yeah, good afternoon. Good afternoon sir. First of all congratulations on great set of numbers. First question from my side is in terms of the volume growth, you know when we are Talking about like 18% kind of CAGR going forward in the wires and cable segment if you can touch upon maybe for the next you know, year itself, you know how is the kind of volume growth expectation and what are the key drivers? Because we have more dependence on the wire side versus cables. That’s my first question. And second is on the cables we had started increasing our portfolio in terms of bringing in new SKUs and starting to penetrate further into the cable segment.
How is that journey going on especially for the cable segment. So these are the two questions from my side.
Shreegopal Kabra
Thanks Jarvanji. If you see our three year projections and our strategy of course we are targeting 18% giga growth and which will be largely driven by growth in cable. And the reason behind that if you see like this industry is like balanced at like around 65% market is for cable and 35% is for wire. And since we are a wire company so in our case it is like almost 70% we are getting revenue from wires and only 30% from cable. And this give us natural like opportunities to grow at a much higher pace than market also.
And in cable we can grow at a higher pace. And if you see even our expansion plan like we are targeting major expansion in cable only. And already you have seen that whatever capex we have done this will Give additional capacity in this year and we are quite confident to getting this growth of 18% year on year in our wire cable segment. But it will be measured by cable growth only.
Charanjit Singh
Okay and sir the second question in terms of the SKUs and the cables, you know what all new products we are introducing what we were lagging in terms of the product gaps we had.
Shreegopal Kabra
So as of now like we are very small in LV HP board but in particularly in HP we have seen a very good demand but like we were having manufacturing capacity constraint and this we are in the process of removing and we have already enhanced our capacity. So major within cable majority of the growth will come from export SKU as well as MV cables in domestic market also which ranges from 11kv to.
Charanjit Singh
Okay sir and just if you can touch upon the exports market, you know how has been the, you know your discussions with the customers because you have like 26% of revenue mix coming from exports. How is the outlook specifically and which geographies are driving, you know the exports market and do you see that in the near term there could be you know some weakness in the export market because of all these, you know tariff related issues or any kind of you know issues related to freight or those kind of factors.
Shreegopal Kabra
So now things are already get normal. Whatever disturbance we had in the first two quarters of previous year and since we are the largest exporters and have seen a very good demand in this year also like we are getting good demand from our Europe market and even though things are not certain in US market lot of uncertainty. But what we believe that whatever things happen it will be more favorable to Indian particularly wire and cable industry and our majority of the export is like distributed driven where we have set up our market in last 20 years to a great extent and we have seen a very positive improvement in demand supply chain situation and we see a very positive growth in coming years.
Charanjit Singh
All right sir, so thanks for taking my questions. All the best for the future. Thank you.
operator
Thank you. The next question is from the line of Praveen Shai from PL Capital. Please go ahead sir.
Praveen Sahay
Yeah, thank you for opportunity and consideration on good set of numbers. So my first question is related to the capacity. If you can give the in metric terms how much of the capacity you have right now and at what utilization you are operating at and also the Capex for yearly basis FY26 and 27.
Rajesh Jain
So if you see like already we are at around 75% capacity utilization on overall level and that’s like around 70% in wires and almost 90 94% in so fairly very good utilization of capacities. And already now we are what capex we did in last year that will give me full capacity this year. At the same time we have already announced our next three years expansion plan which will give us almost 1.7x of our capacities what already we have and this will be like majorly driven by expansion in cable segment of course supported by wire. We are targeting good growth.
So this capacity what we are enhancing will make a good base to meet our year on year growth targets. And this will suffice our proposals.
Praveen Sahay
26:27 Capex number if you can how you are dividing this 1200 odd crore of capex.
Rajesh Jain
See what happens since this is a very big expansion plan. So out of this in first year whatever will invest will we get given the capacity Maybe after the mid of the FY27 onwards only. But for this this year growth plan we already we have like extra capacity what we built in us year or the completion of our previous capacity and what we will complete in this year.
Praveen Sahay
Okay and the last question is related to the EBITDA margin guidance of or the ebitda guidance of two two and a half times you are expecting that leading to around 300 basis points improvement. So how you are expecting to achieve these numbers if you can drill down some benefits out of that which we are initiating to reach to next.
Shreegopal Kabra
We are targeting our EBITDA margins to improve and get double digit margins by FY28 in the range of 10.5%. And this will achieve by like yearly sequential growth of almost 100 basis points year on year. And this will be like achieved by higher volumes, better product mix and even improvement in our profitability in FMEG segment also where we have seen a good improvement like almost 400 bits improvement. Like our losses were reduced by almost 400bps in this year. So in the way we are targeting to achieve a higher and better margin improvement in this year and even next three years or so.
Praveen Sahay
Okay, thank you sir and all the best.
Shreegopal Kabra
Okay, thank you.
operator
Thank you. The next question is from the line of Rahul Agarwal from Ikkikai Assets. Please go ahead.
Rahul Agarwal
Hi, thank you so much. Very good afternoon. Congratulations on a good set of results. Two questions and then maybe I’ll get back in the queue. Firstly on the three year vision I just wanted to know along with this these are more hard financial targets. But any gaps that you would have noticed to achieve these targets over the next three years. Let’s say hiring in the team technology, maybe R and D Investments for new product development, anything like that which you want to fill up as you achieve these targets. Question number one, sir.
Rajesh Jain
Thanks. So other than challenges, we see as opportunity, based on our last so many years of experience in domestic and international market, we have identified our growth opportunity in terms of geography as well as product segment also. And now it is a matter of scaling up our capabilities and capacities and getting higher margin improvement as well as market share also. So of course this is a continuous process where we keep adding our work on R and D side and at the same time we have very clear vision that how to get and from where to get the higher growth in sales as well as profitability.
Also.
Rahul Agarwal
I just wanted to be more specific. Maybe I’ll flip the question what would be risk in terms of achieving these targets? I understand volatility in raw material in general industry risk but from a company perspective I was referring to more gaps that we need to address to achieve due. Correct. So if you could help me with some specific points that will be helpful.
Rajesh Jain
So like in this scenario we have to focus and achieve for achieving this growth targets. Of course we have to be like our presence in market should be increased and noticeable by way of our brand expansion and covering more and more areas and at the same time getting more market share in cable segment as I explained in last session. Also since we are very small and there is a lot of opportunity. So how I structured my business in such a way that I can capture each and every business at higher pace and make my growth higher than industrial risk.
So our growth will be. Our focus will be on the making more robust market and production capabilities also at the same time.
Rahul Agarwal
All right sir, I get it. Secondly on balance sheet, that’s my last question. This increase in payables, it’s been pretty consistent since last three years. The 760 crores of creditors at end of March 2025 doesn’t appear to be very normal. Any changes to credit terms or should we expect this to stay here? Is it sustainable? Any comments on that please?
Shreegopal Kabra
Yeah, so at least on table system it will be like on a stable basis because whatever we have done with our supplier and this are working good and we have seen good improvement in our working capital based on this. On this. So it will remain stable on this side.
Rahul Agarwal
So there is no one off sitting there in the 760 crore number, right?
Shreegopal Kabra
No, no, no, nothing one off. It’s like our regular trend though since we were at a very high volume at the year end for figure it seems large but if you See in like days count, it is like normal on this.
Rahul Agarwal
Okay fine sir, I’ll get back in with you. Thank you so much and all the best for your three year vision.
Shreegopal Kabra
Thank you very much.
operator
Thank you. The next question is from the line of Natasha Jain from Philip Capital. Please go ahead.
Natasha Jain
Thank you. Good afternoon gentlemen and congratulations on a good set of numbers. So one clarification, you mentioned in your opening remark that your sequential growth for wires and cables is completely volume, right?
Shreegopal Kabra
Yes, yes there is some balance between value and volume but yeah it was majorly by volume basically.
Natasha Jain
Okay. And so I heard you earlier today in a TV interview you had said that for FY26 you were planning a volume growth of 18% and your VR plan per year, your CAGR is 18%. So is it fair to understand, is it fair to rather deduce that in this industry it will mainly be a volume led growth and pricing advantage won’t be there especially given the competition coming in.
Shreegopal Kabra
So Natasha, whenever we talk about our growth in future it is like based on volume growth only. Like if I AM Talking about 18% growth it means we are assuming that this metal prices will remain the same while making the production. So we know things are very uncertain but we measure our growth in terms of volume only. So whatever we are guiding, it’s based on volume growth only.
Natasha Jain
Understood sir. So my second question is on smeg. Now your numbers have been very very strong on that side as we head into the. You also mentioned today morning in your interview that you will probably break even in the first half of this year itself, this financial year. So when I listen to your peers commentary they mentioned that the season has been quite tepid and in fact 4Q numbers were not that great because offtake of cooling profits has not been strong. When I see your numbers you’ve outperformed both on top line as well as margins.
So sir, I wanted to know what is it different that we are doing from peers? If I benchmark you on aggressive marketing, digital physical marketing, geographical indexation, everybody else is also doing that aggressively. So where are we really outperforming our field?
Shreegopal Kabra
So like what best what we have done in our previous years it is now like we are getting execution and getting good results and good thing like we have seen a very good acceptance in market of our new products and like premium and premium category like earlier whatever contribution you are getting now we are getting almost, almost 20% of our revenue from premium and mid premium category which gives you brand presence also and improvement in profitability also. So in that Front Whatever strategy we made in previous years, it is like giving good results now.
Natasha Jain
That’S fair. So just one last quick question. So if I ask a very near term question, we’ve seen copper price again beginning to fall now first quarter usually or other first half is seasonally a weaker period in terms of cables. And plus there is a copper price fall that’s happening. Last year we were sitting at a low base because of not so much great execution on the on account of elections. So how do we see this first half panning? Will we get benefit of a low base here?
Shreegopal Kabra
See it will be too early to create now though. Like 35 days of this quarter is already over. But it’s still things keep, get keep changing also of course historically also whenever in this industry you see Q1 is always like very light when you compare with our other three quarters. So it seems that this quarter may remain like subdued or stable kind of demand. But it is like in routine basis only. Nothing abnormal in growth or reduction in growth also.
Natasha Jain
Understood sir. Thank you very much and congratulations once again.
Shreegopal Kabra
Thank you.
operator
Participants who wish to ask a question may press star and 1. The next question is from the line of Srinidhi Karlekar from hsbc. Please go ahead.
Shrinidhi Karlekar
Hi. Thank you for the opportunity and congratulations and great set of numbers. A couple of questions for my end. Firstly, given some capacity constraints that you have in the cable business, may I ask how much volume growth you can achieve in the cable business over the next two years?
Shreegopal Kabra
Yes, so we are targeting almost 25% growth in our cable business on a year on year basis. And this will be like balancing between my capacity also and having favorable market share also.
Shrinidhi Karlekar
You mean the capacity allows you to grow 25% in volume term?
Shreegopal Kabra
Yes.
Shrinidhi Karlekar
For both. F26. F27. Okay, great. And so second question is on the. Profitability of your business across domestic and international business export business. Would it be possible to give us color how are the margin differences between your domestic business and export business in cable and waas segment?
Rajesh Jain
So of course like we have seen a good improvement in margins in export business also driven by a very good like now our focus is more on getting good businesses in cable where we have higher margins. So if we see sequentially in coming years our margins will even from export market are getting better. Of course there is some difference between domestic and export margins. But with this product rebalancing we hope and expected to get a very good improvement in margins in both domestic as well as export markets.
Shrinidhi Karlekar
Last one Nikhani. So you have a very strong Aspirations targets in terms of improvement in the margins. And this you are guiding in the context that your export business which is typically lower margin growing at a faster clip than domestic and second within the domestic also your relatively subscale cable business growing faster than the fitness. So are you assuming sir like a substantial relative price hikes in your portfolio as in your currently pricing is lower compared to peers and you plan to bridge some gap.
Shreegopal Kabra
Well, these are mixed with two things. One as I was there also we had informed that in our export market we have comparatively very higher margin than I compared with wire. But since we were wired with company so in earlier our export wire was contributing more. But now as my cable share is increasing in export my margins will improve. Same way in India since our scale was way less earlier I was not having sufficient capacity waiting period or to my customer was very long compared to peers. So once I improve at supply side or and at the same time if I get the skills also so I will improve my sales margin.
Sales prices also and margins is also improved. So combined level this is like very favorable and positive progress towards margin improvement.
Shrinidhi Karlekar
Great. Thank you for answering your question sir and all the very best.
Shreegopal Kabra
Okay, thank you.
operator
Thank you. The next question is from the line of lithel porohealth from Fident Asset Management. Please proceed.
Unidentified Participant
Hi, thanks for taking my question. Sorry if I missed this question earlier. But what was our volume growth for. The full year and this quarter?
Rajesh Jain
So like our volume growth for the year was 7% but for the quarter it is like 14% on Y O I think.
Unidentified Participant
Okay. And could you give me the volume. Growth for both the segments separately?
Rajesh Jain
Wire and cable is Almost same like almost 13% in WAN, 15% in cable.
operator
Ladies and gentlemen, the participants line got disconnected. We’ll proceed to the next participant. The next participant is Vidit Tivedi from Asian Market Ltd. Please proceed.
Vidit Trivedi
Yeah. Hi sir, thank you for the opportunity and congratulations on great set of numbers. My first question is with respect to the channel activity. Any channel activity during the quarter and any price action during the quarter and. Second is that if you could please. Give me a breakup of the margin profiling in terms of wires and cables both on the domestic front and on the exports front.
Rajesh Jain
This channel activity is continuous process. We have like continuous program for engaging our electricians and retail partners. And since in this quarter we have done a very good activity in IPL by sponsoring AKR and WPL for fmg. So we have seen seen a good improvement and enhancement in our channel activity. But these are on similar lines of what we do continuously.
Vidit Trivedi
Any price action during the quarter. Sorry, any price action during the quarter. Price hike or price cuts?
Shreegopal Kabra
Price hike or price cut? Since these are based on your metal prices. So these are in similar lines.
Vidit Trivedi
And could you please give me a breakup of the margins both in the cables and the wire segment on the domestic and the exports front.
Shreegopal Kabra
Like as you see in India we have very good margins in wire in compared to cable and in export markets it is other way around. But these are like whatever we have historically margins along those lines only the only thing product mix is it changes favorably. Like we get more exposure of cable in export then our margins will keep improving.
Vidit Trivedi
Actually I was asking in terms of any ballpark number like for the wires, let’s say 1213 kind of a number if any number would be helpful.
Shreegopal Kabra
Oh, it’s like almost 12% in wire while in domestic wire, 5 to 6% in export wire. The reason being there we have distribution led business and we do not have marketing any kind of expenses. And there we have very stable business in export wire. And then cable. Export cable market is very highly profitable in the range of 12, 13% while domestic cable is in the range of 6 to 7% for me only though on normalized basis it will be in the range of 9 to 10% once I get the scale and availability.
Vidit Trivedi
Thank you sir, that’s helpful. All the best.
operator
Thank you. The next question is from the line of Aryan Jain from Grow Mutual Funds. Please proceed.
Aryan Jain
Yeah, hi. Thank you for the opportunity and congratulations on a great set of numbers. So my first question is a follow up on one of the previous participants question. So this reduction in the working capital cycle, is it sustainable and also how will it change going forward with the growth in cable exports and SME business?
Shreegopal Kabra
So like though on this quarter basis we have achieved 56 days but normally our working capital date cycle is around 60 days and we expect to remain maybe plus or minus 12 days but in this kind of way.
Aryan Jain
Okay, and second question is can you highlight what would be the mix of domestic wires? So as you mentioned that the breakup was 70, 30, 70% wires and 30% cable. So of the 70% what would be the share of domestic wires?
Rajesh Jain
So in export and domestic both we have like similar rationally like 70% is wire and 30% is cable in both the segments and be domestic or export almost.
Aryan Jain
Okay, okay, thank you. That was a question.
operator
Thank you. The next question is from the line of Nikhil Puroit from Fident Asset Management. Please proceed.
Nikhil Purohit
Yeah, hi, sorry, I got disconnected back then. I wanted to confirm what was the volume growth in absolute number for wires. And cables for this quarter and for the whole year. Could you please help me with that? Thanks.
Shreegopal Kabra
So for this quarter our volume growth was 14%.
Nikhil Purohit
No, no. Absolute number
Shreegopal Kabra
13% in wire and 15% in cable. While on a yearly basis our volume growth was around 7% only where wire was like almost 1 or 2% growth while cable grew by almost 19% on yearly basis. I hope this answers your question.
Nikhil Purohit
No, I understand that. Thanks for that. I was asking more on the lines. Of on the absolute number amount. I mean the quantity absolute number.
Shreegopal Kabra
No, I think I do not have that figure handy. But this will give you a fair idea about our growth.
Nikhil Purohit
Okay, good. Okay, thanks.
operator
Thank you. The next question is from the line of Naman Parma from Navista Investment. Please proceed.
Naman Parmar
Yeah. Good afternoon sir. Thank you so much for the opportunity. First I wanted to understand on the capacity that is getting build up in the field water. So it will be for a cable or majorly it will be for wire only. And how much KV of cable will be producing in that facility.
Shreegopal Kabra
So at Silver we are coming with capacity expansion in wire only. And since cable facility is completely we have at our plant only.
Naman Parmar
Okay. Okay. And so currently what would be your GROSS Block for FY25?
Shreegopal Kabra
It’s around maybe 900 crores. I. We need to refer our relationship but that is available our balance sheet now.
Naman Parmar
Yeah, just I just wanted to know means how much total revenue potential you can do with this cross block. And with the new capacity coming in it would be around 8,500 to 9,000 crore.
Shreegopal Kabra
Yes, we have enough capacity to cater the demand of 18% volume growth. What we are targeting on year on year basis. So we have sufficient capacity with this coming expansion. And even the new capacity have announced.
Naman Parmar
Means the asset turn of 3.5. You’re talking right now
Shreegopal Kabra
four years for new expansion. But already in our old capex itself that was wireless heavy so we have higher acceptance in our wire till now.
Naman Parmar
Okay. And lastly how would be your margin will be the previous because big competition is coming in in this segment. So how you think the margin will be going? Even though 80% is the raw material aluminum and copper which is majorly pass on. Then also what margin you are expecting that.
Shreegopal Kabra
So like as I explained there also that based on our increased capacity getting more scale and getting more efficiency and getting better product mix we are expecting to improve our margins by 100 basis points in coming year. And like this is a quite achievable.
Naman Parmar
Yeah. That’s it. Thank you so much for answering all the questions.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Rahul Agarwal from Ikkikai Acid. Please go ahead.
Rahul Agarwal
Thanks for the follow up. Just one question sir. On the sponsorship for IPL and wpl. Anything, any cost which was booked in fourth quarter.
Shreegopal Kabra
Yes. Like for WPL it was completely booked in previous year. Since event was over for IPL it will be on Pro databases as per accounting.
Rahul Agarwal
Okay. Would you mind sharing how much the cost is booked?
Shreegopal Kabra
We cannot disclose. But it is absolutely in agreement with whatever accounting notes are there. And it is completely on PRO databases.
Rahul Agarwal
All right sir. Not a worry. Thank you so much.
operator
Thank you. The next question is from the line of Naushik Chaudhry from Aditya Birla. Please proceed.
Naushad Chaudhary
Yeah. Hi. Two clarifications. First with the new investment of if I had it correctly capacity would expand by 1.7x. This is on the VARG area not on the blended capacity, right? Or will this be on blended?
Shreegopal Kabra
It’s on blended. When we talk about our capacity and everything it is on a company level. Because we cannot be that much excessive. About plant by plant
Naushad Chaudhary
but thousand crore is adding only 3,36,000 ton capacity, right?
Shreegopal Kabra
Yeah.
Naushad Chaudhary
But if we calculate reverse today FF25 we closed with 6,700 crore rupees of turnover. Assuming roughly 9,9 50 rupees of realization. And we are running at 75 of utilization. This would bring roughly 1 lakh 10 capacity. Rough calculation on which if you expanding 36,000 it would be 36% only. How would it be 70%?
Rajesh Jain
So you have to take care the weightage between Y and table. Also there is different product mix also at Y and table segment. And at the same time we have capacity expansion at silvers also. It is not only 36 but it is a combination of 36 plus 18,000.
Naushad Chaudhary
Okay. 18,000 at Silvasa. Okay. And second just curious on the outlook point of view. Historically if I see last three years, five years despite the industry had you had a low base. Industry had a capacity constraint. We have been able to grow at 13% 15% our volume CAGR of 3 years 5 years. And now though a lot of capacity is coming in industry and we have a high base. What you know give us so much confidence that we will achieve better than what we have achieved in past. Despite highways.
Rajesh Jain
There are two things. One of course we were also having capacity constraint in cable which lowered our crop to some extent at the same time, whatever work we are doing in our export market by entering into new geography and new products. And India also, we have done a very good work in last three, four years to enhance our dealer network and our electrician network. So this will give us good results in coming years.
Naushad Chaudhary
Okay? Okay. All the best. Thank you so much.
operator
Thank you. In the interest of time. That was the last question. I would now like to hand the conference over to the management for closing comments. Thank you. And over to you, sir.
Shreegopal Kabra
Thank you everyone, for joining this call. We appreciate your participation. If you have any questions, feel free to reach out to us. Thank you.
operator
On behalf of RR Cable Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.