Polycab India improving growth momentum

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Polycab India improving growth momentum

Polycab India Limited (BSE: 542652, NSE: POLYCAB) today announced its consolidated results for the second quarter and half year ended September 30, 2021.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We had a healthy Q2. Robust sales growth was underpinned by market share gains across categories. Given the strengthening macroeconomic fundamentals, we see a massive opportunity to spread our wings across B2B as well as B2C categories by leveraging on our strong brand equity and increased consumers affinity for our products. Structural reforms focussed on infrastructure development augurs well for most of our product categories. We are also in the process of building Polycab of the future. A company with robust governance practices, top talent, a strong business model, a customer centric culture and a purpose to serve the communities. We will strive to continue the path of profitable and sustainable growth and contribute to the success of all our stakeholders.”

Key Highlights (Q2 FY22)

·         Revenue grew 48% YoY to Rs. 31,288 mn with broad based growth across segments and markets.

§  Wires and cables business grew 46% on YoY basis to Rs. 25,481 mn in Q2FY22 from Rs. 17,408 mn in Q2FY21. Overall demand environment continued to stage a sequential recovery. Growth was broadly uniform across cables and wires. Domestic distribution driven business sustained its healthy growth momentum while Institutional business remained subdued. Exports business grew 12% YoY contributing 8% to overall revenue in Q2FY22.

§  FMEG business grew 41% YoY to Rs. 3,429 mn in Q2FY22 from Rs. 2,440 mn in Q2FY21 underpinned by strategic interventions, distribution expansion and improving demand environment. Fans business was affected during the quarter  on account of delayed monsoon. Lights, Switches, Conduit Pipes and Pumps business posted healthy growth while other businesses including Switchgears, Solar and Water heaters were about 2x on last years base.

·         PBT declined 8% YoY to Rs. 2,663 mn in Q2FY22 from Rs. 2,880 mn in Q2FY21. PAT margin stood at 6.4% in Q2FY22.

·         As of 30 September 2021, net cash position at Rs 8,773 mn was 27% higher than same period last year.

Key Highlights (1H FY22)

·         Revenue grew 62% YoY to Rs. 50,093 mn enduring the impact of second wave.

§  Wires and cables business grew 63% YoY to Rs. 41,343 mn in 1H FY22 from Rs. 25,343 mn in 1H FY21 led by improving demand environment and strong execution.

§  FMEG business grew 40% YoY to Rs. 5,348 mn in 1H FY22 from Rs. 3,818 mn in 1H FY21 with healthy growth across product categories.

·         PBT grew 11% YoY to Rs. 3,645 mn in 1H FY22 from Rs. 3,271 mn in 1H FY21 despite adverse operating leverage seen in first quarter.

·         Reported PAT was down -19% YoY at Rs. 2,758 mn in 1H FY22 from Rs. 3,391 mn in 1H FY21 reflecting few one off gains in base period. PAT margin stood at 5.5%.

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