Polycab India Q2 net profit up 14.32% at Rs221.55cr

Polycab India reported fall of 5.72% in top line sales for the Sep-20 quarter at Rs2,113.68cr. The operating profits for the quarter ended Sep-20 was higher by 14.94% at Rs266.87cr

Oct 24, 2020 02:10 IST India Infoline News Service

Polycab
Polycab India reported fall of 5.72% in top line sales for the Sep-20 quarter at Rs2,113.68cr. The operating profits for the quarter ended Sep-20 was higher by 14.94% at Rs266.87cr while the net profits were up by 14.32% at Rs221.55cr on a yoy basis.


This had significant impact on the margins of the company too. For the Sep-20 quarter, the operating profit margins or OPM expanded by 227 basis points at 12.63% while the net profit margins or NPM for the quarter also expanded by 184 bps at 10.48% on the back of sharply lower input costs in the Sep-20 quarter.


Financial highlights for Sep-20 compared yoy and sequentially


Particulars Sep-20 Quarter Growth (yoy) Growth (qoq)
Total Revenues Rs2113.68cr -5.72% +116.43%
Operating Profit Rs266.87cr +14.94% +1920.21%
Net Profits Rs221.55cr +14.32% +88.46%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs14.75 Rs12.90 Rs7.87
Operating Margins 12.63% 10.36% 1.35%
Net Profit Margin 10.48% 8.64% 12.04%



Key takeaways from the Sep-20 quarter results

  • The sequential numbers of Polycab are not exactly comparable as they reflect the quarter when the sales were substantially impacted by the COVID-19 impact. The net profit may appear relatively smaller due to the huge deferred tax write back in Jun-20.
  • In terms of product segmentation, wires and cables continued to be the mainstay of the business model accounting for 80% of the total revenues of the company. Interestingly, the wire and cables business also enjoys the best margins in its product portfolio.
  • The net cash flows were operating activities were up more than 3-fold at Rs779cr in the first half of FY21. This was largely on the back of favourable movement in trade receivables and also in inventories, adding substantially to the cash flows.

Related Story