Polycab stock tanks 4% after PAT declines 36% yoy to Rs75cr in Q1FY22

The company’s revenue grew 93% yoy to Rs1,880.5cr in Q1FY22 amidst challenges.

Jul 22, 2021 03:07 IST India Infoline News Service

Polycab India Limited announced its consolidated results for the first quarter ended June 30, 2021. The company’s revenue grew 93% yoy to Rs1,880.5cr in Q1FY22 despite a challenging business environment, the company said in a filing.

Profit Before Tax (PBT) grew 151% yoy to Rs98.2cr in Q1FY22 from Rs39.1cr Q1FY21 reflecting improved profitability. PAT declined 36% yoy to Rs75.3cr in Q1FY22 from Rs117.6cr in Q1FY21 on account of one-off gains in the base quarter. PAT margin stood at 4.0% in Q1FY22.

The company said, Wires and cables business doubled on yoy basis to Rs1,586.2cr in Q1FY22 from Rs793.5cr in Q1FY21. In Domestic business, Cables outperformed Wires in Q1 partly on account of relatively favourable base. Distribution as well as Institutional business was >2x of last year. Exports contribution to overall revenue stood at 6% in Q1FY22 vs 4.5% in Q4FY21.

It further said, FMEG business grew 39% yoy to Rs191.9cr in Q1FY22 from Rs137.8cr in Q1FY21 despite closure of retail shops across many large states. Distribution expansion continued with greater thrust on digital marketing campaigns. Innovation driven product development remains a key focus area. As of 30 June 2021, net cash position at Rs671.6cr was 3.3x of same period last year.

“First quarter performance has been encouraging. Despite challenges posed by lockdowns in many states, we were able to record much better business compared to last year. We remain diligent in managing costs and navigating the volatile demand environment. More importantly, we are progressing well on our strategic agenda and achieving new milestones which will drive transformation over mid to long term. We continue to serve the communities and fulfil our purpose in meaningful ways,” Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said.

Towards end of trade on Thursday, Polycab India Ltd was trading at Rs1910.45 per piece down Rs81.90 or 4.11% from its previous closing of Rs1,992.35 per piece on the BSE.

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