Polycab India Ltd. (PIL) [NSE: POLYCAB, BOM: 542652], a major Indian manufacturer of wires and cables, has announced its financials for the opening quarter of FY-24.
“Best-ever first quarterly revenues and profitability” – Polycab CMD
The company’s Q1 FY-24 financials reflect its highest Q1 revenue and profit till date. Speaking about the company’s Q1 FY-24 financials, Mr. Inder T. Jaisinghani, Chairman and Managing Director of Polycab India said, “We have commenced the financial year exceptionally well, registering our best-ever first quarterly revenues and profitability. The government’s strategic focus on infrastructure development and structural reforms, improving private capex and continued momentum in real estate has further fuelled our success, yielding us favorable results”.
Polycab India’s Q1 FY-24 Standalone Financials
For the quarter ended 30th June 2023, Polycab’s revenue from operations stood at Rs. 3,849 crore. Correspondingly, Polycab’s Profit After Tax (PAT) for the period was Rs. 403.47 crore on a standalone basis.
The company’s Earnings Per Share (EPS) were Rs. 26.94 during Q1 of the current fiscal.
Polycab’s Consolidated Financial Figures for Q1 of FY-24
YoY Comparison of Polycab’s Numbers: Q1 FY-24 vs. Q1 FY-23
On a Year-over-Year (YoY) basis, Polycab India’s revenue from operations grew remarkably by 42.13% to Rs. 3,889.38 crore in Q1 of FY-24 from Rs. 2,736.56 crore logged during Q1 of the previous fiscal.
Further, Q1 PAT of the company exhibited a massive increase of 81% to Rs. 402.81 crore in FY-24 from Rs. 222.55 crore reported in FY-23.
As for the EPS, Polycab reported this figure as Rs. 26.66 for Q1 of the current financial year against Rs. 14.70 for Q1 of FY-23.
QoQ Comparison of Polycab’s Financial Results: Q1 FY-24 vs. Q4 FY-23
Quarter-over-Quarter (QoQ), Polycab’s revenue from operations fell by 10.04% from Rs. 4,323.68 crore, which was earned during the quarter ended 31st March 2023. This fall in revenue is natural since usually, Q4 of any financial year is the highest-grossing quarter when considering the Indian cable industry.
This trend was echoed by PAT as well, and there was a QoQ drop of 5.98% from the company’s Rs. 428.42 crore profit which was logged for Q4 of FY-23.
Polycab’s Segment-Wise Revenue for Q1 of FY-23
Revenue in Rs. Cr.
Wires & Cables: Polycab India is the market leader when it comes to this business segment. Wires and cables contribute the most to the company’s revenue, and in Q1 of FY-23, this segment brought in 88.32% of Polycab’s consolidated gross top line (i.e., total revenue from all segments before deducting the inter-segmental revenue).
Comparing Q1 revenue from this segment on a YoY basis, there was a substantial increase of 46.89% to Rs. 3,533.78 crore in FY-24 from Rs. 2,405.70 crore in FY-23.
Further, revenue from Polycab’s wires and cables business slipped QoQ by 13.35% from Rs. 4,078.29 crore, which was reported for the closing quarter of FY-23.
Fast Moving Electrical Goods (FMEG): Polycab’s Q1 revenue from this segment showed little change on a YoY basis, increasing meagerly by 2.07% to Rs. 314.54 crore in FY-24 from Rs. 308.15 crore during FY-23.
The company’s FMEG revenue showed a similar QoQ trend, increasing marginally by 3.05% from Rs. 305.22 crore which had been reported for the quarter ended 31st March 2023.
Other: Polycab’s ‘Other’ business segment comprises its EPC business.
In Q1 of FY-24, the company logged a revenue of Rs. 152.84 crore against Rs. 99.87 crore for the quarter ended 30th June 2022. Therefore, there has been an increase of 53.04% in Polycab’s revenue from this section.
Comparing QoQ revenue from this segment, there was an increase of 14.25% in revenue from Polycab’s EPC revenue of Rs. 133.78 crore.
Polycab Share Prices Soar almost 5% After Announcement of Q1 FY-23 Results
Polycab India’s share prices saw an impressive jump of 4.77% the day after the company announced of its Q1 FY-24 financials.
This increase follows from the fact that Polycab India usually reports the highest top-line amongst Indian cable manufacturers, and has been doing well consistently over the past several quarters. As per the company’s July 2023 corporate presentation, Polycab’s Compound Annual Growth Rate (CAGR) in revenue has been 15%, and 27% in PAT from FY-19 to FY-23.
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, communication cables, and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signaling cables, specialty cables and green wires.