Polycab India on Tuesday posted profit for the first quarter of financial year 2022-23 at Rs 402.81 crore, up 81 per cent in comparison to Rs 222.55 crore during the same quarter last year, beating estimates. The company registered the highest ever first quarterly profits in the history of the company. PAT margin stood at 10.4 per cent for the quarter. It posted revenue from operations at Rs 3889.38 crore, up 42.1 per cent as against Rs 2736.56 crore during the first quarter of FY22. According to CNBC TV18 estimates, Polycab India was expected to post first quarter profit at Rs 270 crore and revenue at Rs 3198.5 crore.
During the fiscal first quarter, the company’s total income stood at Rs 3953.38 crore, up 42.2 per cent in comparison to Rs 2780.90 crore in the corresponding quarter last year. Its total expenses during Q1FY24 was at Rs 3422.89 crore, up 37.7 per cent from Rs 2484.88 crore a year ago. The company’s EBITDA margin improved by ~280 bps on-year to 14.1 per cent, driven by “judicious price revisions, better operating leverage and favourable business mix”.
“We have commenced the financial year exceptionally well, registering our best-ever first quarterly revenues and profitability. The government’s strategic focus on infrastructure development and structural reforms, improving private capex and continued momentum in real estate has further fuelled our success, yielding us favourable results,” said Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited.
“The improved growth momentum is also a result of a combination of strategic initiatives implemented through Project LEAP, along with our unwavering dedication to customer-centricity, a diverse array of high quality products, and a robust distribution network. Our outstanding quarterly performance serves as a testament to the robustness of our business model,” he added.
Polycab India’s segment wise performance
Polycab India’s Wires and Cables business revenue grew 46.9 per cent on-year to Rs 3533.78 crore, on the back of strong volume both domestically and internationally. “Domestic distribution driven business sustained its strong growth momentum, while institutional business exhibited remarkable growth acceleration. Geographically, growth was broad based, with highest growth coming from the North region. Cables growth continued to outperform wires growth,” the company said.
Meanwhile, FMEG business was muted during the quarter as weak consumer sentiment weighed down on sales. It posted Q1 revenue at Rs 314.54 crore. Fans business exhibited healthy growth sequentially as older non-BEE compliant inventory with channel partners was sold off, leading to conduit pipes & fittings businesses too showed sequential growth, tapping on the continued strong momentum in the real estate sector. “Switches business continued with its impressive growth, with sales growing 3.8x over the same quarter last year, albeit on a lower base. Lights & luminaries business de-grew marginally, on a sequential basis, on account of the continued pricing corrections in the LED segment,” it said.
Furthermore, Polycab India stated that the revenue from international business grew by 88 per cent on-year, contributing to 8.9 per cent of the consolidated revenue. “The Company expanded its global footprint to 72 countries,” it said.