Polycab India Ltd on Thursday released its third quarter earnings for financial year 2023-24 wherein it posted profit at Rs 416.51 crore, up 15.4 per cent in comparison to Rs 361.07 crore during the corresponding quarter of previous year, missing estimates. It posted revenue from operations at Rs 4340.47 crore, up 16.8 per cent as against Rs 3715.18 crore during the third quarter of FY23, on the back of strong volume growth in the wires & cables business. According to a CNBC TV18 poll, Polycab India was expected to record profit for the third quarter of FY24 at Rs 434 crore and revenue was expected at Rs 4477 crore.
The company EBITDA margin for the quarter declined by ~130 bps QoQ to 13.1 per cent, mainly due to higher A&P spends. As of 31st December 2023, Polycab India said that the net cash position improved to Rs 1840.00 crore against Rs 1530.00 crore in the previous quarter.
Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited, said, “Our robust business momentum continued in the third quarter, leading to highest-ever quarterly revenues in the history of the Company. Nine-monthly revenues and profitability too created newer highs. This outstanding success is a testament to our resilient business model, characterized by robust operational efficiency, a diverse and innovative product portfolio, and the robustness of our extensive distribution network that effectively caters to diverse market segments. With a keen eye on emerging trends, Polycab aims to continue its upward trajectory, creating long-term value for our stakeholders.”
For the 9 month period in FY24, Polycab had registered a revenue of Rs 12447.50 crore and PAT during the period was at Rs 1249.40 crore
The company’s Wires & Cables business revenue for Q3FY24 grew by 18 per cent YoY, on the back of strong volume growth. The demand environment remained strong, supported by the government’s continuous focus on infrastructure development and a pickup in private capital expenditure. Domestically, both distribution and institutional businesses reported robust performances. Revenue from International business, it said, contributed 6.2 per cent to the consolidated revenue for the quarter. The Company anticipates a healthy performance in international business during Q4FY24 and beyond. EBIT margin for the quarter stood at 14.0 per cent, witnessing a YoY improvement of 20 bps.
FMEG business, meanwhile, registered a de-growth of 15 per cent YoY in Q3FY24, primarily due to sustained weakness in consumer demand. The fans segment grew sequentially, but registered YoY de-growth, on account of a higher base of the previous year due to stock liquidation activities prior to the BEE transition. The Lights segment continued to decline, adversely impacted by further pricing erosion. Both Switches & Switchgears segments exhibited robust growth during the quarter. The company further stated that higher Advertising and Promotion (A&P) spends and the absence of economies of scale resulted in accelerated bottom-line de-growth. During the quarter, the Company merged the FMEG and Power businesses under a unified Business Unit Head.
