Polycab India Limited has announced its consolidated financial results for the third quarter (Q3) and nine months ended December 31, 2022. During the quarter ended (QE) December 31, 2022, the company registered a 10 per cent growth in revenues on year-on-year (Y-o-Y) basis to the tune of Rs 37.152 billion, on the back of healthy volume growth in cables and wires business. The wires and cables business revenue grew 11 per cent on Y-o-Y basis to Rs 32.87 billion, which was largely driven by domestic distribution business. Meanwhile, the company also registered highest ever quarterly production volume in Q3 FY’2022-23.
Besides, fast-moving electric goods (FMEG) business grew 12 per cent on quarter-on-quarter (Q-o-Q) basis despite challenging business environment. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin continued to improve, increasing by 73 basis points on Q-o-Q basis to 13.5 per cent on the back of better operating leverage despite input cost pressures and almost four-times increase in advertising and promotional spend (A&P) spends. Also, during the quarter, profit after tax (PAT) grew by 45 per cent on Y-o-Y basis to Rs 3.60 billion from Rs 2.48 billion in Q3 FY’2021-22. PAT margin stood at 9.7 per cent for the quarter. Also, as of December 31, 2022, net cash position improved to Rs 18.7 billion against Rs 6.7 billion net cash during the same period last year.
For the nine months ended December 31, 2022, revenue grew 19 per cent on Y-o-Y basis to Rs 97.84 billion from Rs 82.33 billion. Meanwhile, the wires and cables business revenue grew 20 per cent on Y-o-Y basis to Rs 86.02 billion from Rs 71.84 billion in nine months of FY’2022-23. During the period, domestic distribution driven business grew by 25 per cent on Y-o-Y basis on the back of strong volume growth of over 26 per cent. That said, the exports revenue grew by 32 per cent on Y-o-Y. Overall, exports business contributed to 8.6 per cent of consolidated revenue during the period.
Further, FMEG business grew 8 per cent Y-o-Y to Rs 9.48 billion from Rs 8.75 billion in nine months ended December 2022. EBITDA, on the other hand, grew 58 per cent Y-o-Y to Rs 12.39 billion from Rs 7.86 billion. Margins improved by 312 basis points to 12.7 per cent. Meanwhile, reported PAT increased by 64 per cent Y-o-Y to Rs 8.53 billion from Rs 5.19 billion during the period. PAT margin improved by 241 basis points to 8.7 per cent.
Commenting on the performance, Inder T. Jaisinghani, chairman and managing director, Polycab India Limited, said, “We continued our strong quarterly performance, registering highest ever third quarter revenues in Q3 FY’23. Moreover, we achieved the highest ever quarterly profit PAT as well as the highest ever nine-months revenues and PAT in the history of the company. Our excellent performance demonstrates the strength of our executional capabilities effectively leveraging our strong market position, robust distribution network and favourable market conditions. Being committed to the highest standards of corporate governance, we have strengthened our Board today through the induction of two more directors. The new board is more diverse, with 20 per cent representation of women directors, in-line with globally followed best-in-class corporate governance practices.”