Polycab India Ltd on Wednesday released its fiscal third quarter earnings with profit at Rs 464.35 crore, recording a growth of 11.49 per cent in comparison to Rs 416.51 crore during the corresponding quarter of FY24, surpassing estimates. It posted revenue from operations at Rs 5226.06 crore, up 20.40 per cent as against Rs 4340.47 crore during the same period of previous financial year, on the back of robust growth across all business segments. The company EBITDA stood at Rs 721 crore. According to a CNBC TV18 poll, the company was expected to post Q3 profit at Rs 450 crore and revenue for the quarter was estimated at Rs 5,369 crore.
For the nine month period, Polycab India reported revenue at Rs 15,422.50 crore, up 24 per cent YoY and PAT was posted at Rs 1311.20 crore, up 5 per cent YoY.
Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited, said, “We are thrilled to announce that we have concluded 2024 on a robust note, achieving our highest ever revenues for both the third quarter and the nine-month period. This outstanding performance was driven by strong growth across all segments, underscoring our strategic execution and unwavering commitment to excellence. Notably, we have achieved a remarkable milestone of successfully surpassing our first five-year guidance of reaching a Rs 200 Bn top-line by FY26 ahead of time — delivering Rs 210 Bn in revenue for calendar year 2024.”
Polycab India’s Q3 performance across business verticals
The Wires and Cables (W&C) segment recorded a growth of 12 per cent YoY for the quarter. “Demand for cables was healthy, however, a downward trend in copper prices and high channel inventory of wires at the beginning of the quarter led to slowdown in the wires business,” the company said. The international business delivered 62 per cent YoY growth and contributed 8.3 per cent to our overall top-line revenue. EBIT margins for the quarter expanded by ~120 basis points QoQ to 13.5 per cent, driven by the normalization of margins in the wires business and increased contribution from the international business.
The FMEG business registered a 45 per cent YoY growth, albeit on a lower base. Polycab India said, “Robust growth was witnessed across all major product categories. The fan segment maintained its growth trajectory, as premiumization strategy continued to deliver successful outcomes. After several quarters of degrowth, the lights and luminaires segment achieved significant volume and value growth despite ongoing pricing pressures. Additionally, the switchgears, conduit pipes & fittings and switches categories also posted healthy growth, driven by sustained demand from the real estate sector.”
Other businesses, largely comprising the EPC business, registered a growth of 111 per cent YoY during the quarter to Rs 475.30 crore, on the back of robust execution of the EPC order book.