Polycab India net profit jumps 202% yoy to Rs222 crore in Q1FY23; Stock rises

20 Jul 2022 , 09:19 AM

Polycab India Limited has announced its consolidated results for the first quarter ended June 30, 2022.

Commenting on the performance, 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.”

Key Highlights (Q1 FY23)

• 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 Rs3,052 million. 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.

At around 9:19 AM, Polycab India was trading at Rs2,260.40 per share up by Rs11 or 0.49% from its previous closing of Rs2,249.40 per share on the BSE.