Polycab’s Q2 FY23 Financials Exhibit Impressive Growth, PAT Up 36.73% YoY
Polycab India Ltd. [NSE: POLYCAB, BOM: 542652], an Indian wire and cable major, has announced its financial results for the second quarter of the 2022-23 financial year.
Polycab’s Q2 FY23 Standalone Financial Results
For the quarter ended 30th September 2022, Polycab’s standalone revenue from operations stood at Rs. 3,260.48 crore.
The company’s standalone net profit for Q2 of the current fiscal was recorded as Rs. 262.74 crore.
Polycab’s Consolidated Q2 FY23 Financial Results
YoY Comparison of Polycab’s Financials: Q2 FY-23 vs Q2 FY-22
Polycab India Ltd. (PIL) reported Rs. 3,332.36 crore as its revenue from operation for the quarter ended 30th September 2022. This reflects a strong Year-over-Year (YoY) growth of 10.84% from the Rs. 3,006.56 crore revenue registered by the company for the corresponding quarter of the previous fiscal.
Polycab’s Q2 Profit After Tax (PAT) showed an impressive YoY growth to Rs. 270.46 crore from Rs. 197.81 crore. This reflects a healthy 36.73% growth.
QoQ Comparison of Polycab’s Financial Performance: Q2 FY-23 vs. Q1 FY-23
PIL’s revenue from operations for Q2 of FY-23 shot up by 21.77% from Rs. 2,736.56 crore which was clocked in the first quarter of the current fiscal.
PAT of the company also showed an upward trajectory on a Quarter-over-Quarter (QoQ) basis, increasing by 21.53% from the Rs. 222.55 crore profit recorded for Q1 of FY-23.
Polycab’s Segment-Wise Financial Performance
Revenue in Rs. Cr.
Wires and Cables: Being primarily a wire and cable manufacturer, revenue from this segment comprises the bulk of Polycab’s top line.
PIL’s revenue from its wire and cable business was Rs. 2,951.72 crore during Q2 of the current fiscal. This is a 12.31% YoY increase from Rs. 2,628.08 crore revenue clocked through this segment in Q2 of FY-22.
Further, QoQ comparison of revenue from this segment shows a 22.7% increase from Rs. 2,405.7 crore, which was recorded for Q1 of the current fiscal.
As per Polycab, the domestic distribution business in this segment has remained strong. The company’s wire and cable business saw the maximum growth in Western India, followed by the north, south and east regions of the country.
Exports contributed 13% to the company’s Q2 FY-23 revenue from Cables segment. Major overseas markets for Polycab’s wires and cables included those in USA, Europe and Asia.
Fast Moving Electrical Goods (FMEG): On a YoY basis, Polycab’s Q2 revenue from its FMEG business slumped by 10.96% to Rs. 305.36 crore in FY-23 from Rs. 342.93 crore in FY-22.
A QoQ comparison also shows a downward trend in revenue from this segment, dropping by 0.91% from Rs. 308.15 crore clocked during Q1 of FY-23.
Polycab stated that this drop in its FMEG revenue has been due to a decrease in demand. The company’s fans business went down on account of inflation and new BEE regulations, while its switch business showed an upward trend since Q1 of FY-23.
Others: This segment mainly comprises Polycab’s EPC business.
YoY, Q2 revenue from this segment increased by 10.55% to Rs. 105.06 crore in FY-23 from Rs. 95.03 crore in FY-22.
Further, this segment recorded a 5.2% QoQ increase in revenue from Rs. 99.87 crore, which was recorded for the quarter ended 30th June 2022.
Polycab’s Outlook on its Financial Performance
Commenting on the company’s financial performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said, “We continued with our strong business performance in Q2, posting highest ever 2nd quarter revenue in the history of the Company. Combined with the stand-out performance of Q1, our top line for first half of the year grew by 25% YoY”.
Mr. jaisinghani further stated that the company’s margins were healthier owing to robust growth in exports.
He added, “We remain committed to achieving ₹ 200 billion sales by FY 2026 and make Polycab a future-ready organization”.
About Polycab India Limited: Polycab India Limited was established in 1996. The company’s wire and cable portfolio include 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.