Polycab India Limited on Wednesday posted its second quarter earnings for the financial year 2023-24. It recorded Q2 profit at Rs 425.57 crore, up 58.8 per cent as against Rs 267.97 crore during the same quarter last year, surpassing estimates. The company posted revenue from operations for Q2FY24 at Rs 4217.70 crore, up 26.6 per cent in comparison to Rs 3332.36 crore during the second quarter of FY23, on the back of strong volume growth in wires & cables business.
According to a CNBC TV18 poll, Polycab India was expected to post Q2 profit at Rs 388 crore and revenue at Rs 4068.3 crore. The company EBITDA stood at Rs 609 crore. EBITDA margin, it said, improved by ~160 bps YoY to 14.4 per cent. “Better operating leverage and favourable product mix contributed to margin improvement,” it added. While the company posted total income of Rs 4253.02 crore during the second quarter of FY24, it posted total expenses at Rs 3695.87 crore during the same period. As of September 30, 2023, net cash position at Polycab India improved to Rs 1530 crore against ₹ 1010 crore net cash during the last quarter.
In terms of H1FY24 performance, Polycab India’s revenue grew 34 per cent on-year to Rs 8107.10 crore from Rs 6068.90 crore in H1FY23. Wires and cables business revenue grew by 36 per cent YoY to Rs 7227.40 crore in H1FY24 with healthy growth across both distribution and institutional businesses. Revenue from International business contributed 9.1 per cent of the consolidated revenue, it said. Meanwhile, FMEG business grew 5 per cent YoY to Rs 640.90 crore during the period. It also added that the West region, which is the Company’s stronghold, exhibited reasonable growth.
“We continued our strong business performance in Q2, enabling the half yearly revenue and profitability to be the highest ever in the Company’s history. Favourable demand environment with multiple avenues of growth along with our strong focus on execution has laid the foundation for the current year to be a remarkable chapter in the history of our organization,” said Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited.
“During the quarter, we unveiled our new brand identity, symbolizing our commitment to innovation, technology, safety, and sustainability with a vision of ‘Connecting all to a brighter future’. Our new visual identity, inspired by the colours of dawn, embodies our commitment to a brighter future and reaching new heights. We’ve also updated our brand tagline from the existing positioning of ‘Connection Zindagi Ka’ to ‘Ideas. Connected.’ which reflects our vision for a future where innovative products simplify lives, and it all begins with a thoughtful idea. The Company is on an exciting journey towards a more promising future, and I believe the brand refresh will act as a catalyst in accelerating this favourable advancement,” Inder T Jaisinghani added.