Private equity firm TPG Asia VII SF Pte Ltd may sell its entire 5% stake in leading cable company RR Kabel via block deals, CNBC Awaaz reported on Wednesday. The US-based equity firm is looking to sell 56.33 lakh shares worth Rs 1,000 crore in the company via the block deals. The price is at least 4-5% lower than the market value.
RR Kabel is the country’s fifth-largest manufacturer of wires and cables. The company is also involved in the manufacturing of fans, lighting, switches, and appliances.
In 2018, TPG Asia had bought around 21% stake in RR Kabel. The company launched its IPO in the late 2023. Since then, the PE firm has gradually cut its stake in the company. In 2018, TPG had sealed the acquisition deal at the price of Rs 270.08 per share. On Wednesday, RR Kabel shares ended trade nearly 5% lower at Rs 1,718.25 on BSE. RR Kabel’s revenue from operations and profit for FY23 stood at around Rs 5,600 crore and Rs 190 crore, respectively, at the time of the IPO launch.
RR Kabel posted a net profit of Rs 78.72 crore in the quarter ended March 2024, according to an exchange filing on May 28.
RR Kabel todau announced its highest-ever revenue, EBITDA, and Profit After Tax (PAT) for the fiscal year ended 31 March 2024. Key financial highlights for FY24 include revenues of Rs. 1,754.1 crores in Q4 FY24, up 15.7 per cent from Rs. 1,516.5 crores in Q4 FY23 and a 7.4 per cent increase from Rs. 1,633.5 crores in Q3 FY24, culminating in a total revenue of Rs. 6,594.6 crores for FY24, a 17.8 per cent rise from Rs. 5,599.2 crores in FY23.
Operating EBITDA for Q4 FY24 stood at Rs. 115.5 crores, a 14.3 per cent increase from Rs. 101.1 crores in Q4 FY23 and a 2.6 per cent increase from Rs. 112.6 crores in Q3 FY24, with a full-year figure of Rs. 462.8 crores, reflecting a significant 43.2 per cent increase from Rs. 323.3 crores in FY23. EBITDA margins were slightly lower at 6.6 per cent in Q4 FY24 compared to 6.7 per cent in Q4 FY23 and 6.9 per cent in Q3 FY24, but the overall FY24 margin improved to 7.0 per cent from 5.8 per cent in FY23.
Profit after tax was Rs. 78.7 crores in Q4 FY24, a 20.6 per cent increase from Rs. 65.3 crores in Q4 FY23 and a 10.9 per cent increase from Rs. 71.0 crores in Q3 FY24, with an annual figure of Rs. 298.1 crores, marking a 57.0 per cent increase from Rs. 189.9 crores in FY23.