Polycab India rises after Q3 PAT climbs 45% YoY to Rs 361 cr

Polycab India gained 2.79% to Rs 2,829.55 after the company's consolidated net profit (from continuing operations) jumped 45.28% to Rs 360.83 crore on 10.18% rise in revenue from operations to Rs 3,715.18 crore in Q3 FY23 over Q3 FY22.

The company said that it witnessed growth in the revenue in spite of high base, lower commodity prices and higher inflation on the back of healthy volume growth in cables & wires business.

Consolidated profit before tax stood at Rs 481 crore in the quarter ended 31 December 2022, registering a growth of 48.15% from Rs 324.68 crore posted in Q3 FY22.

EBITDA was at Rs 503 crore in Q3 FY23, recording a growth of 39% year on year. EBITDA margin continued to improve, increasing by 73 bps QoQ to 13.5% on the back of better operating leverage despite input cost pressures and almost 4x increase in A&P spends

Wires and Cables business revenue grew 11% on YoY basis to Rs 3,287.8 crore, which was largely driven by domestic distribution business. The outperformance was primarily on account of benefits realized through the merger of HDC and LDC verticals last year. The company also registered highest ever quarterly production volume in Q3 FY23.

FMEG business was almost flat YoY and grew 12% QoQ despite challenging business environment. While October and November were stronger compared to the months of Q2 FY23, demand picked up considerable pace in December.

As of 31 December 2022, net cash position improved to Rs 1,870 crore against Rs 670 crore net cash during the same period last year.

Inder T. Jaisinghani, chairman and managing director, Polycab India, said, We continued our strong quarterly performance, registering highest ever 3rd quarterly revenues in Q3FY23. Moreover, we achieved the highest ever quarterly PAT as well as the highest ever nine-months revenues and PAT in the history of the company. Our excellent performance demonstrates the strength of our executional capabilities effectively leveraging our strong market position, robust distribution network and favourable market conditions.

The company's board has approved the appointment of Gandharv Tongia as an additional (whole-time) director for a period of 5 years commencing from 19 January 2023 to 18 January 2028, subject to approval of the shareholders through postal ballot and further designated him as 'executive director & CFO' of the company.

Further, the firm's board has also approved the appointment of Manju Agarwal as an additional (non-executive independent) director of the company for a term of 3 consecutive years commencing from 19 January 2023 to 18 January 2026.

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.

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