Cable NewsFMEGLatest NewsSpotlight

Polycab’s Q3 FY-24 Financials: Revenue Grows 17%, PAT up 15% YoY

Polycab India Limited Logo

Polycab India Limited [NSE: POLYCAB, BOM: 542652], a major Indian cable & wire manufacturer, has announced its financial results for Q3 of FY-24.

Polycab’s Q3 FY-24 Standalone Financial Figures

On a standalone basis, the company reported a top-line of Rs. 4,512.92 crore and a corresponding Profit After Tax (PAT) of Rs. 459.28 crore for Q3 of FY-24.

Moreover, Earnings Per Share (EPS) of the company were reported as Rs. 30.59 for the quarter ended 31st December 2023.

Polycab’s Consolidated Financial Performance for Q3 FY-24

YoY Comparison of Polycab’s Financials: Q3 FY-24 vs. Q3 FY-23

Comparison of Polycab’s Financials: Q3 FY23 vs Q3 FY24 vs Q2 FY24

For Q3 of FY-24, Polycab’s consolidated revenue from operations stood at Rs. 4,340.47 crore against Rs. 3,715.18 crore for Q3 of FY-23. This reflects a Year-over-Year (YoY) growth of 16.83% in the company’s Q3 revenue.

Considering PAT of the company, a YoY 15.35% increase is evident. PAT rose to Rs. 416.51 crore in Q3 of FY-24 in comparison to Rs. 361.07 crore achieved during Q3 of FY-23.

Correspondingly, Polycab’s consolidated EPS also soared to Rs. 27.50 in Q3 of FY-24 from Rs. 23.91 in Q3 of FY-23.

QoQ Comparison of Polycab India’s Financial Numbers: Q3 FY-24 vs. Q2 FY-24

On a Quarter-over-Quarter (QoQ) basis, Polycab’s revenue exhibited a meagre increase by 2.91% from Rs. 4,217.70 crore, which was clocked in Q2 of FY-24.

However, there was visible margin pressure as the company’s PAT witnessed a 3.09% drop from Rs. 429.77 crore reported for Q2 of FY-24.

Polycab’s Segment-Wise Revenue Comparison

Polycab’s Segment-wise Revenue: Q3 FY23 vs Q3 FY24

Wires and Cables: Being predominantly a manufacturer of cables and wires, this segment forms the largest chunk of Polycab’s revenue. In Q3 of FY-24, the company’s wire & cable segment revenue brought in 87.78% of the company’s gross consolidated revenue*.

Comparing the YoY trend in Q3 top-line from this segment, a jump of 16.83% is evident to Rs. 3,904.10 crore in FY-24 from Rs. 3,341.79 crore in FY-23.

Polycab attributed this increase in revenue to robust demand backed by infrastructure projects from the public sector, as well as ‘a pickup in private capital expenditure’. Further, the share of International business in the company’s Q3 FY-24 revenue stood at 6.2%, which Polycab expects to increase in Q4 of FY-24 onwards.

*Gross revenue refers to the sum of segmental revenues without deducting any inter-segmental income.

Fast Moving Electrical Goods (FMEG): Revenue from this segment witnessed a 13.40% YoY slump to Rs. 296.18 crore in Q3 of FY-24 from Rs. 342.01 crore, which was reported during Q3 of FY-23.

This drop in revenue has been attributed to weak consumer demand. There was a shrinkage in the fans sub-segment, while switchgear and switches sub-segments grew YoY.

Others: This segment mostly comprises Polycab’s EPC business.

Revenue from this segment almost doubled to Rs. 247.50 crore in Q3 of FY-24 from Rs. 126.01 crore logged during Q3 of FY-23. This shows a drastic increase of 96.41% in Polycab’s EPC revenue.

“Highest-ever Quarterly Revenues in the History of the Company” – Polycab CMD

Speaking about the company’s Q3 FY-24 results, Mr. Inder T. Jaisinghani, Chairman & Managing Director, Polycab India, said, “Our robust business momentum continued in the third quarter, leading to highest-ever quarterly revenues in the history of the Company”. Mr. Jaisinghani attributed this achievement to the company’s operational deftness, diverse product line-up, and elaborate network of distributors. “With a keen eye on emerging trends, Polycab aims to continue its upward trajectory, creating long-term value for our stakeholders”, he added.

Further, in its official statement for Q3 FY-24 financials, the company stated that revenue grew on account of increase in the volume of sales, especially in Polycab’s wires and cables segment.

Polycab’s Share Price Recovers slightly after January 11 Crash, Volume of Trades Picks Up

Polycab’s share price dwindled by 20% on 11th January 2024, after reports of alleged tax evasion by the company surfaced in media channels.

The stock has since recovered slightly, and while there was not much effect on Polycab’s share price due to announcement of Q3 FY-24 financial results, the volume of shares traded has increased. On 18th January 2024, volume of trades stood at 39,40,000 trades, while the number of trades stood at 19,29,000 trades a day earlier.

About Polycab India Ltd.: 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 signaling cables, specialty cables and green wires.