Polycab India Limited (BSE: 542652, NSE: POLYCAB) today announced its results for the first quarter ended June 30, 2024.
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We have started the financial year on a strong footing, achieving our highest-ever first-quarter revenues, despite significant commodity price volatility affecting channel sales in the later part of the quarter, which underscores our exceptional execution capabilities and adaptability in a changing market environment. The strong domestic economy, bolstered by structural reforms aimed at infrastructure development, provides an advantageous backdrop for the growth of our various product categories. As we anticipate continued robust demand, we are fully prepared to leverage these significant opportunities and drive sustained growth.”
Key Highlights (Q1 FY25)
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The Company’s revenues grew by 21% YoY to register its highest ever first quarterly revenue, on the back of steady growth in W&C business, supported by strong growth in the EPC business and a seasonally robust performance in the FMEG business.
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W&C business revenue for Q1 FY25 grew by 11% YoY to ₹ 38,572 Mn. Significant fluctuations in commodity prices sharply impacted demand dynamics in channel sales in later part of the quarter, thereby mitigating the potential benefits derived from elevated average commodity prices. With commodity prices having stabilized and channel inventory at normalized levels, we foresee uptick in sales in the forthcoming quarters. Domestically, the institutional business outpaced the distribution business, while growth in cables continued to outperform that in wires. Revenue from international operations de-grew during the quarter, contributing 5.3% of the Company’s consolidated revenue for the quarter. EBIT margins for the quarter were 12.6%, adversely impacted by lower contributions from the higher-margin international and the domestic distribution businesses.
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FMEG business registered a growth of 21% YoY, driven by strong sales in fans amid heatwave in several parts of the country. While our switches & switchgears and conduit pipes & fittings segments demonstrated robust growth, bolstered by strong real estate demand, challenges persisted in the
lights & luminaires segment, which continued to see pricing erosion at an industry level. EBIT margins improved during the quarter due to lower A&P expenditures, coupled with enhanced contributions from switchgears and conduit pipes & fittings.
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Other businesses, largely comprising of the EPC business, registered a strong growth of 292% YoY during the quarter to ₹ 4,815 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.
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EBITDA margin for the quarter stood at 12.4%, adversely impacted by a shift in our business mix towards segments with lower margins. Specifically, the contribution from our higher-margin international business and domestic distribution business declined, while that from lower-margin EPC business increased.
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PAT de-grew by 0.4% YoY to ₹ 4,016 Mn in Q1FY25. PAT margin stood at 8.5% for the quarter.
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As of 30th June 2024, net cash position stood at ₹ 16.4 Bn, against ₹ 10.1 Bn in the same quarter previous year.
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Post receiving shareholder’s approval in the Company’s 28th AGM on 16th July 2024, the Company processed dividend pay-out of ₹ 30 per share to its shareholders on the same day.
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The Company has reconstituted its Audit Committee and Nomination & Remuneration Committee with immediate effect. Both the committees will fully comprise of Independent Directors.
