Polycab India Q3 PAT up 1.16% at Rs247cr as 38.5% spike in raw material costs dent profit growth

23 Jan 2022 , 07:03 PM

Polycab India Ltd reported 22.78% growth yoy in total revenues for the Dec-21 quarter on consolidated basis at Rs3,372cr. On a sequential basis, the revenues were higher for the quarter by 12.15%.

During the quarter, sales of wires and cables were up 24.6% at Rs2,999cr while the sales of FMEG products were up 11% at Rs340cr.

During the quarter, Polycab divested its 100% stake in Ryker Base for Rs178cr while the exceptional gains of Rs82cr from discontinued operations were not included in the operational results calculation.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 1.16% at Rs247cr as the spike in sales revenues was largely offset by a 38.5% spike in raw material costs due to supply chain constraints.

However, on a sequential basis, the net profits were up 26.39%. While the operating profits on the wires and cables business were flat, the operating profits on the FMEG business were down yoy.

Net margins tapered from 8.88% in the Dec-20 quarter to 7.32% in the Dec-21 quarter. Net margins were higher sequentially by 83 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	Polycab India
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 3,372	₹ 2,746	22.78%	₹ 3,007	12.15%
Net Profit (Rs cr)	₹ 247	₹ 244	1.16%	₹ 195	26.39%
Diluted EPS (Rs)	₹ 16.50	₹ 16.30		₹ 13.01
Net Margins	7.32%	8.88%		6.49%