Bengaluru, October 18, 2024: Polycab India Limited (BSE: 542652, NSE: POLYCAB) today announced its results for the second quarter and six months ended September 30, 2024.
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We have concluded the first half of the financial year on a strong note, delivering our highest-ever second quarter and half yearly revenues and profit, driven by robust market demand. Further, CRISIL has upgraded its rating on our long-term bank facilities to “CRISIL AAA/Stable” reflecting our strong financial performance, market leadership position, and sustained growth prospects. Looking ahead, we expect the demand momentum to continue, supported by increased government spendings, continued investment by private players and robust real estate offtake. With a strong focus on operational excellence, we stand well positioned to capitalise on the emerging opportunities and drive steady growth.”
Key Highlights (Q2 FY25)
- The Company’s revenues grew by 30% YoY to register its highest ever second quarterly revenue, on the back of robust growth across business segments
- W&C business revenue grew by 23% YoY to ₹ 46,067 Mn, driven by favorable movement in commodity prices and continued strong demand environment. Domestically, the institutional business outpaced the distribution business, while growth in wires outperformed that in cables. The international business too posted remarkable results, growing by 36% QoQ and contributing 6.1% to our overall top-line. EBIT margins for the quarter were at 12.3%, adversely impacted by higher competitive intensity and lower contribution from the higher margin domestic distribution business.
- FMEG business registered a growth of 18% YoY, fueled by initiatives such as channel expansion, product architecture improvements, and robust execution of the influencer management program. Our Fan segment has performed well, with notable growth in online sales. The Switchgear segment too has seen strong growth, benefiting from healthy real estate demand. Although the light and luminaries segment saw a decline in revenue due to pricing erosion, it achieved considerable volume growth. EBIT margins declined during the quarter due to higher A&P spends and employee expenditures.
- Other businesses, largely comprising of the EPC business, registered a strong growth of 241% YoY during the quarter to ₹ 5,488 Mn, on the back of robust execution of the EPC order book. Contribution from this business is expected to be in mid-to-high single digits to the Company’s consolidated revenue going forward.
- The EBITDA margin for the quarter stood at 11.5%, impacted by heightened competitive intensity in the W&C business. Margin pressure was further exacerbated by the faster growth of the lower-margin institutional business compared to the distribution business, along with increased A&P and employee expenses in the FMEG segment
- PAT grew by 4% YoY to ₹ 4,452 Mn in Q2FY25. PAT margin stood at 8.1% for the quarter.
- As of 30th September 2024, net cash position stood at ₹ 24.3 Bn, against ₹ 15.3 Bn in the same quarter previous year.
Key Highlights (H1 FY25)
- The Company achieved a significant milestone, with half-year revenues surpassing ₹100 billion for the first time in its history. Revenue grew by 26% YoY to ₹101,965 Mn from ₹81,071 Mn in H1 FY24.
- W&C business revenues grew 17% YoY to ₹ 84,639 Mn from ₹ 72,274 Mn in H1 FY24 with healthy growth across both distribution and institutional businesses. The International business contributed 5.7% of the consolidated revenue.
- FMEG business grew 20% YoY to ₹ 7,675 Mn in H1FY25 from ₹ 6,409 Mn in H1 FY24. The North and West regions have exhibited robust growth.
- Other businesses, largely comprising of the EPC business, registered a strong growth of 263% YoY to ₹ 10,304 Mn from ₹ 2,835 Mn, on the back of robust execution of the EPC order book.
- EBITDA grew 5% YoY to ₹ 12,149 Mn in H1FY25 from ₹ 11,575 Mn in H1 FY24. EBITDA margins stood at 11.9%.
- PAT increased by 2% YoY to ₹ 8,468 Mn from ₹ 8,329 Mn, to register highest ever half-yearly PAT. PAT margin stood at 8.3%.
