Polycab Posts Robust Q3 FY23 Financials: QoQ Profits Grow by 33.41%
Polycab India Ltd. [NSE: POLYCAB, BOM: 542652], a prominent player in the Indian wire and cable industry, has released its financial results for the third quarter of the 2022-23 financial year.
Polycab’s Standalone Revenue and Profits for Q3 of FY-23
Polycab’s standalone revenue from operations stood at Rs. 3,664.90 crore for the quarter ended 31st December 2022.
Profit After Tax (PAT) for this period earned by the company was Rs. 357.60 crore.
Polycab’s Q3 FY-23 Consolidated Financial Performance
Steady YoY Growth in Polycab’s Q3 Financials: Q3 FY-23 vs. Q3 FY-22
For the quarter ended 31st December 2022, Polycab reported Rs. 3,715.18 crore as its revenue from operations. This reflects a stable 10.18% growth in the company’s revenue on a Year-over-Year (YoY) basis, from the Rs. 3,372 crore revenue clocked during Q3 of the previous fiscal.
PAT resonated the same trend as the company’s revenue and grew to Rs. 360.83 crore in Q3 of FY-23 from Rs. 316.16 crore in Q3 of FY-22, thereby exhibiting a 14.13% YoY growth.
Polycab Exhibits Robust QoQ Performance: Q3 FY-23 vs. Q2 FY-23
On comparing Polycab’s numbers on a Quarter-over-Quarter (QoQ) basis, a resilient 11.49% growth from the company’s Q2 FY-23 revenue of Rs. 3,332.36 crore is evident.
Polycab’s PAT grew impressively by 33.41% from Rs. 270.46 crore clocked during the quarter ended 30th September 2022.
Polycab’s Segment-wise Consolidated Financial Results
Wires and Cables: For the third quarter of the current financial year, this segment contributed Rs. 3,341.79 crore to Polycab’s revenue. This figure stood at Rs. 2,998.76 crore for the same period during FY-22. Therefore, there has been a YoY 11.43% growth in Polycab’s revenue from the Wires and Cables segment.
Comparing the company’s revenue from this segment on a QoQ basis, a healthy 13.22% growth is evident from Rs. 2,951.72 crore clocked during the quarter ended 30th September 2022.
Polycab stated its press release dated 19th January 2023 that the growth in total revenue can be attributed to the growth in volume of the company’s wires and cables business. As per the company, Q3 FY-23 saw the highest volume of wires and cables produced as compared to any quarter.
Despite low commodity prices and high inflation, this increase in volume helped Polycab register healthy growth.
FMEG: Polycab’s revenue from its Fast Moving Electrical Goods (FMEG) portfolio also registered growth on a QoQ basis.
The company reported an FMEG revenue of Rs. 342.01 crore for Q3 of FY-23, which is almost unchanged on a YoY basis, reflecting a negligible growth of 0.48%. Polycab’s revenue from its FMEG business stood at Rs. 340.36 crore during the quarter ended 31st December 2021.
However, on a QoQ basis, this figure grew by a healthy 12% from the Rs. 305.36 crore FMEG revenue reported by the company for the second quarter of the ongoing fiscal. The company has attributed this to increase in demand during October-November of 2022. Moreover, Polycab stated that demand for its FMEG products was also good during December 2022.
The company’s fans business saw a good growth, as distributors resumed stocking of fans after the enforcement of new Bureau of Energy Efficiency (BEE) norms. Several FMEG manufacturers had reported losses due to de-stocking of fans in the previous quarter on account of the change in BEE norms.
Others: This segment consists of Polycab’s EPC portfolio.
Revenue from the EPC segment recorded a YoY growth of 27.35%, rising to Rs. 126.01 crore during Q3 of FY-23 from Rs. 98.95 crore in Q3 of FY-22.
On a QoQ basis, the company’s EPC business showed a growth of 19.94% from the Rs. 105.06 crore revenue that the company reported for the quarter ended 30th September 2022.
Polycab’s Outlook on its Financial Performance
Commenting on the company’s financial performance during Q3 of the current fiscal, Mr. Inder T. Jaisinghani, Chairman and Managing Director of Polycab India Ltd. said, “We continued our strong quarterly performance, registering highest ever 3rd quarterly revenues in Q3FY23. Moreover, we achieved the highest ever quarterly PAT”.
He further stated that Polycab’s financial performance reflects the company’s ability to take advantage of its strong market presence, extensive distribution network and conducive market environment.
About Polycab India Limited: Polycab India Limited was established in 1996. The company’s wire and cable portfolio includes power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, flexible/single multi-core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signalling cables, speciality cables and green wires. Polycab has 25 manufacturing facilities, out of which 3 cater to its FMEG business.