Polycab India Q1 FY24 sees highest ever first quarterly profits
Polycab India Limited (PIL), an Indian manufacturer of wires and cables, has released its consolidated results for the first quarter ending June 30, 2023.
The company has registered an increase of 42% in revenue, 77% in EBITDA, and 81% in PAT compared to the same period last year.
Despite lower commodity prices, the company achieved a revenue of ₹ 38,894 Mn, driven primarily by significant volume growth in the wires and cables business. This segment saw a year-on-year increase of 46% amounting to ₹ 34,874 Mn. The company attributes this growth to strong domestic and international sales, with the highest regional growth coming from the North. Cable sales outperformed wire sales and the margins in this segment improved by about 330 basis points year on year.
Polycab’s international business demonstrated robust growth, with revenues increasing by 88% and accounting for 8.9% of the total consolidated revenue. The company expanded its reach to 72 countries, marking an increase in its global footprint.
However, the FMEG business showed muted growth due to weak consumer sentiment. Despite this, the segment saw a 3% year-on-year growth, with fans, switchgears, and conduit pipes & fittings businesses showing sequential growth. Switches business also experienced substantial growth, with sales growing 3.8x over the same quarter last year. Lights & luminaires business saw a marginal decline sequentially due to ongoing pricing corrections in the LED segment.
The EBITDA margin increased by around 280 basis points to 14.1% year on year. PAT grew by 81% year on year to ₹ 4,028 Mn, representing the company’s highest ever first quarterly profits. The PAT margin for the quarter stood at 10.4%.
Polycab India Limited’s Chairman and Managing Director, Inder T. Jaisinghani, attributed the company’s exceptional quarterly performance to the government’s strategic focus on infrastructure development and structural reforms, improving private capital expenditure, and continued momentum in the real estate sector. He also credited the success to strategic initiatives implemented through Project LEAP, customer-centricity, a diverse array of high-quality products, and a robust distribution network.