Polycab India Ltd share Price Today

Polycab is the largest manufacturer of wire & cable in India. The company also entered the fast moving electrical goods (FMEG) space in 2014 and has recorded strong segment revenue CAGR of 32% in the last five years.

• Polycab is the market leader in the wire & cable business with organised market share of 22-24%. In the FMEG segment, it is growing through new product launches and dealer addition across India. The company has ~4600 dealers, serving ~2 lakh retail outlets
• Robust b/s with RoE, RoCE of 18%, 22%, respectively, (three-year average)

Cables & Wires segment drives Q3FY23 performance

• Revenues were up ~10% YoY to ~₹ 3715 crore led by ~13% growth in the wires & cable segment. FMEG segment revenue remained flat on a YoY basis at ₹ 342 crore due to subdued demand conditions
• Gross margin increased ~309 bps YoY supported by better product mix, judicial price revisions and lower RM costs. As a result, EBITDA margin increased by 284 bps YoY to 13.6%
• PAT grew by ~14% YoY to ~₹ 361 crore YoY (up 33.4% QoQ) tracking strong topline growth and EBITDA margin expansion

Electrical Equipment/Products company Polycab India announced Q3FY24 & 9MFY24 results:

Financial Performance
- Total revenue for 9MFY24 reached Rs 1,24,475 million, marking a significant 27% growth compared to the same period last year.
- EBITDA for 9MFY24 rose to Rs 17,303 million, reflecting a noteworthy increase of 40% YoY.
- Profit After Tax (PAT) went up by 46% to Rs 12,494 million in the 9MFY24.
- Q3FY24 revenue stood at Rs 43,405 million, up by 17% YoY.
- Q3 EBITDA and PAT saw increments of 13% and 15%, respectively, with PAT amounting to Rs 4,165 million.

Business Segments
- Wires & Cables business observed an 18% YoY revenue growth in Q3 and 29% over 9MFY24, facilitated by strong volume growth.
- The FMEG sector experienced a decline of 15% in revenue during Q3 due to weaker consumer demand, with a slight 2% de-growth over 9 months.

Operational Highlights
- A unified Business Unit Head has been appointed to oversee the merger of the FMEG and Power businesses.
- International business contributed to 6.2% of the consolidated revenue for the quarter, with expectations of robust performance in the subsequent quarters.

Profitability and Cash Position
- Q3FY24 reported PAT margin of 9.6%.
- Net cash position saw improvement, reaching Rs 18.4 billion on December 31, 2023, from Rs 15.3 billion in the previous quarter.
- In 9MFY24, there was an improvement in margins by approximately 120 bps to 13.9%, and PAT margins enhanced by about 130 bps to 10%.

Commenting on the performance, Inder T. Jaisinghani, Chairman and Managing Director, Polycab India, 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."

Result PDF

Electrical Equipment/Products company Polycab India announced Q2FY24 & H1FY24 results:

1. Financial Performance:
- Highest-ever revenue for the second quarter and six months ended September 30, 2023.
- Revenue growth of 27% YoY to Rs 42,177 million in Q2FY24 and 34% YoY to Rs 81,071 million in H1FY24.
- EBITDA growth of 43% YoY to Rs 6,089 million in Q2FY24 and 57% YoY to Rs 11,575 million in H1FY24.
- PAT growth of 59% YoY to Rs 4,298 million in Q2FY24 and 69% YoY to Rs 8,329 million in H1FY24.

2. Business Performance:
- Strong volume growth in the wires & cables business driving revenue growth.
- Continued strong demand supported by government capex and robust real-estate off-take.
- Growth in both distribution-driven business and institutional business.
- Expansion of global footprint to 76 countries.

3. Brand Identity Update:
- Unveiling of new brand identity symbolizing innovation, technology, safety, and sustainability.
- New visual identity inspired by the colors of dawn.
- Updated brand tagline from "Connection Zindagi Ka" to "Ideas. Connected."

4. Segment Performance:
- Strong growth in switches, switchgear, conduit pipes & fittings, and luminaires businesses.
- Marginal growth in Fans and Lights businesses due to weak consumer demand.

Inder T. Jaisinghani, Chairman and Managing Director, Polycab India, said, "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.

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”.

Result PDF

Other Electrical Equipment/Products company Polycab India announced Q1FY24 results:

• Revenue at Rs 38,894 million; up 42% YoY
• EBITDA at Rs 5,486 million; up 77% YoY
• PAT at Rs 4,028 million; up 81% YoY

Commenting on the performance, Inder T. Jaisinghani, Chairman and Managing Director, Polycab India, 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.”

Result PDF

Electrical Equipment/Products company Polycab India announced Q4FY23 & FY23 results:

• Q4FY23:
  • Revenue at Rs 43,237 million; up 9% YoY
  • EBITDA at Rs 6,032 million; up 27% YoY
  • PAT at Rs 4,284 million; up 32% YoY
• FY23:
  • Revenue at Rs 1,41,078 million; up 16% YoY
  • EBITDA at Rs 18,429 million; up 46% YoY
  • PAT at Rs 12,823 million; up 52% YoY

Commenting on the performance, Inder T. Jaisinghani, Chairman and Managing Director, Polycab India, said: “FY23 was a remarkable year for the Company, as we surpassed revenues of Rs 140 billion and profitability threshold of Rs 10 billion, to record highest ever revenues and PAT in the history of the Company. With robust demand on the anvil, we are confident of exhibiting continued strong growth in the near-to-mid term as well.

Continuing to move forward towards adopting best corporate governance practices, we inducted another Independent Director on our Board today. We have also formulated our ESG Framework and Charter, aligned with International ESG protocols and guidelines, which will enable us to build resilience in the business, transform culture and create long-term value for all our stakeholders”

Result PDF

Other Electrical equipment firm Polycab India announced Q3FY23 results:

• Q3FY23:
  • Revenue at Rs 37,152 million; up 10% YoY
  • EBITDA at Rs 5,030 million; up 39% YoY
  • PAT at Rs 3,608 million; up 45% YoY
• 9MFY23:
  • Revenue at Rs 97,841 million; up 19% YoY
  • EBITDA at Rs 12,397 million; up 58% YoY
  • PAT at Rs 8,538 million; up 64% YoY

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We continued our strong quarterly performance, registering the highest ever 3rd quarterly revenues in Q3FY23. Moreover, we achieved the highest-ever quarterly PAT as well as the highest-ever nine-months revenues and PAT in the history of the Company. Our excellent performance demonstrates the strength of our execution capabilities effectively leveraging our strong market position, robust distribution network and favourable market conditions.

Being committed to the highest standards of corporate governance, we have strengthened our Board today through the induction of 2 more Directors. The new Board is more diverse, with 20% representation of women directors, in-line with globally followed best-in-class corporate governance practices”.

Result PDF

Electronic Equipment Manufacturing company Polycab India announced Q2FY23 results:

• (Q2 FY23)
  • Revenue grew 11% YoY to Rs 33,324 million in spite of high base, declining commodity prices and burgeoning inflation on the back of healthy volume growth in Cables and Wires business
    • Wires and cables business revenue grew 13% on YoY basis to Rs 29,259 million. Domestic distribution driven business continued to see strong momentum. Institutional business too saw healthy growth
    • Exports business exhibited strong growth of 75% YoY on a healthy base, contributing 13% to consolidated revenue in Q2 FY23
    • FMEG business de-grew 12% YoY to Rs 3,032 million
    • Switch business recovered from the lows of Q1FY23, posting 123% QoQ growth
  • PAT grew by 37% YoY to Rs 2,705 million from Rs 1,978 million in Q2FY22. PAT margin stood at 8.1% for the quarter
  • As of 30th September 2022, net cash position improved to Rs 16.7 billion against Rs 8.7 billion net cash during the same period last year
  • The Company merged Fans vertical with Lights & Luminaries vertical and Retail Wires vertical with Switches & Switchgears vertical.
• (H1 FY23)
  • Revenue grew 25% YoY to Rs 60,689 million from Rs 48,618 million in H1FY22
    • Wires and cables business revenue grew 26% on YoY basis to Rs 53,144 million from Rs 42,164 million in H1FY22 with healthy growth across both distribution and institutional business
    • FMEG business grew 14% YoY to Rs 6,084 million from Rs 5,348 million in H1FY22
  • EBITDA grew 73% YoY to Rs 7,367 million from RS 4,247 million in H1FY22. Margins improved by 340 bps to 12.1%. Strong growth in exports and judicious price revisions contributed to margin improvement
  • Reported PAT increased by 82% YoY to Rs 4,930 million from Rs 2,715 million in H1FY22. PAT margin improved by 254 bps to 8.1%

Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We continued with our strong business performance in Q2, posting highest ever 2nd quarter revenue in the history of the Company. Combined with the stand-out performance of Q1, our top-line for first half of the year grew by 25% YoY. Margin expansion was supported by strong growth in exports and judicious price revisions. We are also progressing well on our long-term strategic agenda of focusing on sustainable value creation across B2B and B2C businesses through Project LEAP. Strong domestic economy with structural reforms focused on infrastructure development augurs well for most of our product categories. We remain committed to achieving Rs 200 Bn sales by FY 2026 and make Polycab a future ready organization”

Result PDF

Polycab India Announced Q1FY23 Result :

• Q1FY23 Revenue at Rs. 27,366 mn; up 48% YoY
• Q1FY23 EBITDA at Rs. 3,098 mn; up 135% YoY
• Q1FY23 PAT at Rs. 2,225 mn; up 202% YoY
• Revenue grew by 48% YoY with broad based growth across segments and markets.
• EBITDA margin improved by 420 bps YoY to 11.3% led by calibrated price hikes and better operating leverage. PAT was up 202% YoY and PAT margin improved to 8.1%.
• Wires & Cables business saw a strong growth of 48% YoY. While domestic distribution driven business sustained its strong growth momentum, institutional business improved its performance compared to same quarter last year. Export contributed 6.7% to consolidated revenue & posted healthy revenue growth of 62% YoY.
• Distribution expansion continued with greater thrust on digital marketing campaigns. Innovation driven product development remains a key focus area.
• FMEG business grew by 59% YoY to Rs 3,052 Mn. Lighting, switchgears and pump continued their strong growth momentum, while Fans, Conduit Pipes and Solar business posted healthy growth. However, switches saw a decline due to supply challenges.
• The company made significant progress in its flagship transformation program - Project Leap. Several initiatives were undertaken including set up right organization enablers, improve Customer centricity, augment Go -To - Market and re-energize Product portfolio.
• We remain committed to achieving Rs 200 Bn sales by FY 2026 and make Polycab a future ready organization.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We have started the fiscal year 2023 on solid footing, with top line growth of 48% fuelled by strong performance across B2B and B2C categories. Furthermore, we recorded the highest 1st quarter top-line in the history of the company which underlines our strategy to be agile, focus on robust execution and consistently deliver the best quality of products to our customers. Profitability was supported by better operating leverage and various strategic initiatives implemented over the past few quarters. We will strive to continue the path of profitable and sustainable growth and contribute to the success of all our stakeholders.”

Result PDF

 Electrical Equipment/Products firm Polycab India declares Q4FY22 result:

• Q4FY22 Revenue at Rs. 39,700 mn; up 35% YoY
• Q4FY22 EBITDA at Rs. 4,760 mn; up 18% YoY
• Q4FY22 PAT at Rs. 3,253 mn; up 20% YoY
• FY22 Revenue at Rs. 1,22,038 mn; up 39% YoY
• FY22 EBITDA at Rs. 12,626 mn; up 14% YoY
• Revenue grew 35% YoY to Rs. 39,700 mn on the back of healthy demand environment despite sharp inflation coupled with strong execution.
• Wires and cables business grew 39% on YoY basis to Rs. 35,110 mn in Q4FY22 from Rs. 25,305 mn in Q4FY21. Demand environment continued to remain encouraging. Domestic distribution driven business continued to see strong traction. Housing wires posted strong growth led by continued momentum in real estate and renovation activities as well as demand generation initiatives. A new sub brand “Etira” was launched in the economy price segment. Trade sentiment in Cables was temporarily restrained by significant volatility in Aluminium prices. Exports business was 2x of last year led by strong demand from sectors like Oil & Gas, Renewables and Infrastructure globally. Segmental margins continued to improve sequentially led by judicious price hikes and improved operating leverage.
• FMEG business grew 9% YoY to Rs. 3,792 mn in Q4FY22 from Rs. 3,468 mn in Q4FY21. Overall demand momentum in Q4 was albeit subdued largely attributable to broader inflation. The business also underwent realignment exercise to improve sales force efficacy and achieve distribution synergies. Fans, lights and switchgears business posted healthy growth while Conduit Pipes continued the strong momentum. Switches saw a decline due to supply challenges. Transition to inhouse manufacturing of switches is in progress. Solar business was muted however for the full year it achieved over 50% YoY growth.
• EBITDA margin continued to improve sequentially by 125bps to 12.0% led by price hikes and better operating leverage, partly offset by persistent input cost pressures. PAT margin improved to 8.2% against previous quarter. PAT grew 20% YoY.
• As of 31 March 2022, Net Cash position stood at Rs. 11.0 bn as against Rs 9.6 bn last year. Debt to Equity decreased to 0.01x.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “Our strong performance in fiscal year 2022 was underpinned by the extraordinary efforts of our team to achieve new milestones even in one of the most uncertain environments. We delivered accelerated business growth, record free cash flow, healthy returns on capital and market-leading shareholder returns. We will champion our renewed purpose of innovating for a brighter living. Our “i-POWER” values will guide our thoughts and actions which will help us create long term sustainable value for all stakeholders and enrich the lives of everyone connected with Polycab.”

Result PDF

Electrical Equipment/Products company Polycab India Limited declares Q3FY22 result:

• Q3FY22 Revenue at Rs. 33,720 mn; up 23% YoY
• Q3FY22 EBITDA at Rs. 3,620 mn; up 3% YoY
• Q3FY22 PAT at Rs. 2,484 mn; up 1% YoY
• 9M FY22 Revenue at Rs. 82,338 mn; up 41% YoY
• 9M FY22 EBITDA at Rs. 7,867 mn; up 11% YoY
• Revenue grew 23% YoY to Rs. 33,720 mn with healthy growth across categories.
  • Wires and cables business grew 24% on YoY basis to Rs. 29,679 mn in Q3FY22 from Rs. 24,023 mn in Q3FY21. Domestic distribution driven business continued to remain healthy, Institutional business bounced back strongly led by good uptick in private investments across industries. This coupled with, impacted trade sentiments due to volatility in copper prices and fears of lockdown in latter half of the quarter led to Cables growing faster than Wires in 3Q. Normalised exports portfolio posted a healthy 24% YoY growth led by Africa, Asia and Australia. Overall, this business contributed 8.1% to consolidated revenue. Profitability continued to improve on a sequential basis led by calibrated price hikes and better operating leverage.
  • FMEG business grew 11% YoY to Rs. 3,404 mn in Q3FY22 from Rs. 3,055 mn in Q3FY21 enduring the challenging market environment and a stronger base. October saw a robust momentum however December was impacted by weaker trade and consumer sentiments arising out of third wave. On a biennial basis growth remained healthy at 57%. Fans business was subdued; Lights, Pumps and Conduit Pipes business continued healthy growth momentum. Switchgears and Solar were about 1.5x on last years base.
• EBITDA margin continued to improve sequentially by 100bps to 10.7% led by price hikes and better operating leverage, partly offset by input cost pressures and higher A&P spends. PAT margin improved to 7.4% against previous quarter. PAT grew 1% YoY.
• As of 31 December 2021, Net Cash position stood at Rs. 6.7 bn. Debt to Equity decreased to 0.02x.
• Revenue grew 41% YoY to Rs. 82,338 mn enduring the impact of second wave at the beginning of fiscal year.
  • Wires and cables business grew 42% YoY to Rs. 71,843 mn in 9M FY22 from Rs. 50,502 mn in 9M FY21 led by improving demand environment and strong execution.
  • FMEG business grew 27% YoY to Rs. 8,752 mn in 9M FY22 from Rs. 6,873 mn in 9M FY21 with healthy growth across product categories.
• PBT grew 9% YoY to Rs. 6,858 mn in 9M FY22 from Rs. 6,271 mn in 9M FY21 despite adverse operating leverage seen in first quarter.
• Adjusted PAT at Rs. 5,199 mn in 9M FY22 from Rs. 4,704 mn in 9M FY21 grew 11% YoY. PAT margin stood at 6.3%.

Result PDF

Highlights

• 1H FY22 Revenue at Rs. 50,093 mn; up 62% YoY
• 1H FY22 EBITDA at Rs. 4,397 mn; up 19% YoY
• Q2FY22 Revenue at Rs. 31,288 mn; up 48% YoY
• Q2FY22 EBITDA at Rs. 3,025 mn; down -3% YoY
• Q2FY22 PAT at Rs. 2,005 mn; down -9% YoY
• Revenue grew 48% YoY to Rs. 31,288 mn with broad based growth across segments and markets.
  • Wires and cables business grew 46% on YoY basis to Rs. 25,481 mn in Q2FY22 from Rs. 17,408 mn in Q2FY21. Overall demand environment continued to stage a sequential recovery. Growth was broadly uniform across cables and wires. Domestic distribution driven business sustained its healthy growth momentum while Institutional business remained subdued. Exports business grew 12% YoY contributing 8% to overall revenue in Q2FY22.
  • FMEG business grew 41% YoY to Rs. 3,429 mn in Q2FY22 from Rs. 2,440 mn in Q2FY21 underpinned by strategic interventions, distribution expansion and improving demand environment. Fans business was affected during the quarter on account of delayed monsoon. Lights, Switches, Conduit Pipes and Pumps business posted healthy growth while other businesses including Switchgears, Solar and Water heaters were about 2x on last years base.
  • PBT declined 8% YoY to Rs. 2,663 mn in Q2FY22 from Rs. 2,880 mn in Q2FY21. PAT margin stood at 6.4% in Q2FY22.
  • As of 30 September 2021, net cash position at Rs 8,773 mn was 27% higher than same period last year.
• Revenue grew 62% YoY to Rs. 50,093 mn enduring the impact of second wave.
  • Wires and cables business grew 63% YoY to Rs. 41,343 mn in 1H FY22 from Rs. 25,343 mn in 1H FY21 led by improving demand environment and strong execution.
  • FMEG business grew 40% YoY to Rs. 5,348 mn in 1H FY22 from Rs. 3,818 mn in 1H FY21 with healthy growth across product categories.
  • PBT grew 11% YoY to Rs. 3,645 mn in 1H FY22 from Rs. 3,271 mn in 1H FY21 despite adverse operating leverage seen in first quarter.
  • Reported PAT was down -19% YoY at Rs. 2,758 mn in 1H FY22 from Rs. 3,391 mn in 1H FY21 reflecting few one off gains in base period. PAT margin stood at 5.5%.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We had a healthy Q2. Robust sales growth was underpinned by market share gains across categories. Given the strengthening macroeconomic fundamentals, we see a massive opportunity to spread our wings across B2B as well as B2C categories by leveraging on our strong brand equity and increased consumers affinity for our products. Structural reforms focussed on infrastructure development augurs well for most of our product categories. We are also in the process of building Polycab of the future. A company with robust governance practices, top talent, a strong business model, a customer centric culture and a purpose to serve the communities. We will strive to continue the path of profitable and sustainable growth and contribute to the success of all our stakeholders.”

Result PDF