Polycab India Limited has announced its consolidated results for the third quarter and nine months ended December 31, 2020.

Commenting on the performance, Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said, “We saw a great all-round performance in Q3 amidst lingering challenges. Business trends continue to improve and demand for B2C products remains buoyant with improving consumer sentiment. Accordingly, our top line has bounced back to growth along with considerable progress in return ratios, cashflow, financial position, distribution expansion and strategic initiatives. The results demonstrate the durability of our business model as well as our strong execution capability. Our relentless focus on providing quality solutions to customers along with strong organisation capabilities will augment Polycabs stature in the ‘Electricals’ ecosystem and provide a long pathway for profitable growth “

Highlights on consolidated performance for the third quarter ended December 31, 2020

  • Revenue grew 12 per cent YoY to Rs 27,988 million, as against a decline of 6 per cent YoY seen in Q2, with healthy underlying growth across segments and rising share of B2C business.
    • Wires and cables business grew 6 per cent YoY to Rs 22,703 million in Q3FY21 from Rs 21,502 million in Q3FY20 despite a high base. Construction activities are progressing, albeit at a slower pace. Consumer demand remains strong with improving sentiment. Wires saw strong traction.
    • FMEG business grew 41 per cent YoY to Rs 3,055 million in Q3FY21 from Rs 2,166 million in Q3FY20 on the back of buoyant consumer demand, distribution expansion, better product mix and pricing actions. Growth was broad based across most categories and regions. Profitability in Q3 improved despite higher A&P spends and input cost pressures due to improved product mix and calibrated pricing actions.
  • PBT grew 22 per cent YoY to Rs 3,541 million in Q3FY21 from Rs 2,900 million in Q3FY20 reflecting improved profitability.
  • PAT grew 19 per cent YoY to Rs 2,636 million in Q3FY21 from Rs 2,214 million in PAT margin at 9.4 per cent in Q3FY21, was up 59bps YoY.
  • As of 31 December 2020, net cash position doubled to Rs 13,335 million. ROCE stood at 30.6 per cent in Q3FY21. 

Highlights on consolidated performance for the nine months ended December 31, 2020

  • Revenue declined 12 per cent YoY to Rs 58,891 million largely reflecting the impact of pandemic on earlier periods.
    • Wires and cables business declined 15 per cent YoY to Rs 48,046 million in 9MFY21 from Rs 56,759 million in 9MFY20 hurt by severe impact of pandemic and lockdowns in first half of FY21.
    • FMEG business grew 5 per cent YoY to Rs 6,873 million in 9MFY21 from Rs 6,523 million in 9MFY20.
  • PBT declined 6 per cent YoY to Rs 6,812 million in 9MFY21 from Rs 7,268 million in 9MFY20 on account of adverse operating leverage.
  • PAT was up 9 per cent YoY at Rs 6,027 million in 9MFY21 from Rs 5,505 million in 9MFY20. PAT margin at 10.2 per cent in 9MFY21, was up 202bps YoY partly reflecting few one off gains.