Polycab India Limited (BSE: 542652, NSE: POLYCAB) today announced its consolidated results for the third quarter and nine months ended December 31, 2021.
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We saw the momentum continue in 3Q despite a challenging business environment. We recorded the highest quarterly top-line in the history of the company for the second consecutive quarter which substantiates our strategy to be agile, focus on robust execution and consistently deliver the best quality of products to our customers. We have revitalised our demand generation capabilities and Go-To-Market strategy with greater emphasis on Emerging India clusters and new age channels. We have also commenced work on developing a robust ESG framework that will align us to the best of global standards and serve as guiding principles for sustainable business practices.”
· Revenue grew 23% YoY to Rs. 33,720 mn with healthy growth across categories.
§ Wires and cables business grew 24% on YoY basis to Rs. 29,679 mn in Q3FY22 from Rs. 24,023 mn in Q3FY21. Domestic distribution driven business continued to remain healthy, Institutional business bounced back strongly led by good uptick in private investments across industries. This coupled with, impacted trade sentiments due to volatility in copper prices and fears of lockdown in latter half of the quarter led to Cables growing faster than Wires in 3Q. Normalised exports portfolio posted a healthy 24% YoY growth led by Africa, Asia and Australia. Overall, this business contributed 8.1% to consolidated revenue. Profitability continued to improve on a sequential basis led by calibrated price hikes and better operating leverage.
§ FMEG business grew 11% YoY to Rs. 3,404 mn in Q3FY22 from Rs. 3,055 mn in Q3FY21 enduring the challenging market environment and a stronger base. October saw a robust momentum however December was impacted by weaker trade and consumer sentiments arising out of third wave. On a biennial basis growth remained healthy at 57%. Fans business was subdued; Lights, Pumps and Conduit Pipes business continued healthy growth momentum. Switchgears and Solar were about 1.5x on last years base.
· EBITDA margin continued to improve sequentially by 100bps to 10.7% led by price hikes and better operating leverage, partly offset by input cost pressures and higher A&P spends. PAT margin improved to 7.4% against previous quarter. PAT grew 1% YoY.
· As of 31 December 2021, Net Cash position stood at Rs. 6.7 bn. Debt to Equity decreased to 0.02x.
Key Highlights (9M FY22)
§ Wires and cables business grew 42% YoY to Rs. 71,843 mn in 9M FY22 from Rs. 50,502 mn in 9M FY21 led by improving demand environment and strong execution.
§ FMEG business grew 27% YoY to Rs. 8,752 mn in 9M FY22 from Rs. 6,873 mn in 9M FY21 with healthy growth across product categories.
· PBT grew 9% YoY to Rs. 6,858 mn in 9M FY22 from Rs. 6,271 mn in 9M FY21 despite adverse operating leverage seen in first quarter.
· Adjusted PAT at Rs. 5,199 mn in 9M FY22 from Rs. 4,704 mn in 9M FY21 grew 11% YoY. PAT margin stood at 6.3%.