Polycab India Q4 PAT rises 20% to Rs 3253 cr

10 May 2022 , 03:22 PM

Polycab said increase in revenue was on the back of healthy demand environment despite sharp inflation coupled with strong execution. Profit before tax (PBT) rose 16.7% year on year to Rs 430.02 crore in the quarter ended 31 March 2022. EBITDA was up by 18% year on year to Rs 476 crore during the quarter. EBITDA margin declined to 12% in Q4 FY22 from 13.8% posted in the corresponding period last year. Margins saw minor decline on the back of price hikes and better operating leverage, partly offset by persistent input cost pressures. Wires and cables business grew 39% on YoY basis to Rs 3,511 crore in Q4 FY22 from Rs 2,530 crore in Q4 FY21. Demand environment continued to remain encouraging. Domestic distribution driven business continued to see strong traction. Polycab said housing wires posted strong growth led by continued momentum in real estate and renovation activities as well as demand generation initiatives. Trade sentiment in cables was temporarily restrained by significant volatility in aluminium prices. Exports business was twice as of last year led by strong demand from sectors like oil & gas, renewables and infrastructure globally. FMEG business grew 9% year on year to Rs 379.2 crore in Q4 FY22 from Rs 346.8 crore in Q4 FY21. Overall demand momentum in the quarter was albeit subdued largely attributable to broader inflation. 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. On full year basis, the wire maker reported a 14.5% rise in consolidated net profit to Rs 845.2 crore on a 39% increase in net sales to Rs 12,203.76 in the FY22 over FY21. As of 31 March 2022, net cash position stood at Rs 1100 crore as of 31 March 2022 as against Rs 960 crore 31 March 2021. Commenting on the performance, Inder T. Jaisinghani, chairman and managing director of Polycab India said, ?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.? Meanwhile, the board recommended a final dividend of Rs 14 per equity share for the financial year ended 31 March 2022. Polycab India is the largest manufacturer of wires and cables in India and fast growing player in the Fast Moving Electrical Goods (FMEG) space. The group is also in the business of engineering, procurement and construction (EPC) projects. Shares of Polycab India closed 1.66% lower at Rs 2,394.9 on BSE on Tuesday. Powered by Capital Market – Live News