Polycab’s Q1 FY23 Financial Results: Highest-Ever Q1 Revenue, PAT Rockets 195.7% YoY
Polycab India Limited, one of the leading companies in the wire & cable business in India, released its financials for the first quarter of 2022-23 fiscal on 19th July 2022.
Comparison of Polycab India’s Q1 FY23 Financial Results
Polycab’s Consolidated Financial Results’ YoY Comparison Shows an Upward Trend
Comparing the Q1 results of FY-23 with FY-22, Revenue from Operations showed a 47.5% increase to Rs. 2,736.56 crore from Rs. 1,855.23 crore.
Further, the Profit After Tax (PAT) for the quarter ended on 30th June 2022 was Rs. 222.55 crore, which is a massive 195.7% jump from the Rs. 75.26 crore PAT clocked during the same period in the previous fiscal.
It is important to note that Q1 FY22 was mired by the severe effects of the dearly 2nd wave of Covid in India. Consumption was badly hit, and even day-to-day activities were heavily curtailed.
QoQ Comparison of Polycab’s Financials
Polycab’s Revenue from Operations exhibited a 31.06% slump from Rs. 3,969.98 crore recorded during the last quarter of FY-22. The company’s PAT also fell by 31.59% from Rs. 325.34 crore stated for the quarter ended 31st March 2022.
Historically Q4 is the best performing quarter for cables companies, as several projects tend to aim for completion and generation of additional revenue.
Polycab’s Q1 FY-23 Segment-wise Financials
Revenue in Rs. Cr.
Wires & Cables: Polycab is the leader in the Indian wires & cables market, especially the distribution / channel-sales market, and this segment comprises the bulk of Polycab’s revenue. During the quarter ended 30th June 2022, the company clocked revenue of Rs. 2,405.70 crore from its wires and cables business. This is a 47.86% Y-o-Y increase from Polycab’s wire and cable revenue during Q1 of FY-22, which was Rs. 1,626,95 crore.
As per Polycab, though this growth was sustained by its domestic distribution business, the company’s institutional business in this segment performed better with respect to Q1 of the previous fiscal.
Fast Moving Electrical Goods (FMEG): Polycab’s FMEG business also exhibited an exceptional 60% Y-o-Y growth. Revenue from this segment during Q1 of FY-23 was Rs. 308.15 crore against Rs. 191.88 crore for Q1 of the previous fiscal year.
Within the FMEG segment, Polycab’s revenue from fans, conduit, lighting and switchgear business exhibited growth. Polycab’s solar business also showed an upward trajectory. However, the demand for Polycab’s switches declined as compared to Q1 of FY-22 owing to supply challenges.
Polycab also stated that it has increased its focus on rural markets for its FMEG products.
Others: This segment mainly consists of the company’s EPC business. Revenue from this segment grew by a healthy 39.17% to Rs. 99.87 crore in the first quarter of the 2022-23 fiscal from Rs. 71.76 crore during Q1 of 2021-22.
Polycab’s Outlook on its Q1 FY-23 Financial Performance
Speaking of the company’s results, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said that Polycab has started the new fiscal year in a strong position. He further stated that the company has exhibited a 48% growth propelled by its performance across B2B and B2C categories.
Mr. Jaisinghani further said, “We recorded the highest 1st quarter top-line in the history of the company which underlines our strategy to be agile, focus on robust execution and consistently deliver the best quality of products to our customers. Profitability was supported by better operating leverage and various strategic initiatives implemented over the past few quarters. We will strive to continue the path of profitable and sustainable growth and contribute to the success of all our stakeholders”.
In an interview given to ET Now, Mr. Gandharv Tongia, Polycab’s CFO, stated that until about 5 years ago, the contribution of exports to the company’s top-line (revenue) was about 2-3%. In the quarter ended 30th June 2022, this number has increased to 6.59%. The company, which has its presence in Australia and the US, is looking forward to entering markets of Africa and the European Union.
Polycab has also set a target of increasing its revenue to Rs. 20,000 crore by FY-26.
About Polycab India Limited: Polycab India Limited is one of India’s major wire and cable companies. Polycab’s turnover in the 2021-22 fiscal was over Rs. 12,000 crore. 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.