Polycab Revenue Jumps 42% At ₹38,894 Million, PAT Grows 81%

Polycab India Limited on Tuesday announced its consolidated results for the first quarter ended June 30, 2023 through an exchange filing.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “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. 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.”

Key Highlights (Q1 FY24)

• Revenue grew 42 per cent Year-on-Year to ₹ 38,894 Million in spite of lower commodity prices on the back of strong volume growth in the wires and cables business.

• Wires and Cables business revenue grew 46 per cent YoY basis to ₹ 34,874 Million on the back of strong volume growth 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. Segmental margins improved by ~330 bps YoY led by judicious price revisions, better operating leverage and strong growth in international business.

• Revenue from international business grew by 88 per cent YoY, contributing to 8.9 per cent of the consolidated revenue. The Company expanded its global footprint to 72 countries.

• FMEG business was muted during the quarter as weak consumer sentiment weighed down on sales. However, the segment showed 3 per cent year-on-year and sequential growth as benefits of channel realignment started to play-out. Fans business exhibited healthy growth sequentially as older non-BEE compliant inventory with channel partners was sold off, leading to fresh sales of newer BEE compliant inventory during the quarter. Switchgears and 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.

• EBITDA margin improved by ~280 bps YoY to 14.1 per cent driven by judicious price revisions, better operating leverage and favourable business mix.

• PAT grew by 81 per cent YoY to ₹ 4,028 Million, registering the highest ever first quarterly profits in the history of the Company. PAT margin stood at 10.4 per cent for the quarter.