Polycab India Limited announced its consolidated results for the Q2 and first half ended September 30, 2020.
Commenting on the performance, Inder T. Jaisinghani, chairman and managing director (CMD), Polycab India Limited, said, “I am delighted with our Q2 performance given the context of current challenging business environment. Overall demand trends are encouraging and many of our consumer facing businesses have started seeing growth compared to last year. At the same time, we have tightened our belts to improve profitability without bargaining on long term brand development and innovation initiatives. While we remain optimistic of robust economic potential over mid to long term, government initiatives and reviving consumer sentiment should support demand in months to come. We remain focussed on augmenting our brand positioning in the Electricals space and creating long term shareholder value. “
Highlights on consolidated performance for the second quarter ended September 30, 2020
- Revenue declined 6 per cent YoY to Rs 21,137 million as against 50 per cent YoY decline seen in Q1. Improving overall business environment with staggered unlocking led to better performance sequentially.
- Wires and cables business declined 7 per cent YoY to Rs 17,408 million in Q2FY21 from Rs 18,811 million in The business saw improving momentum with resumption of economic activities. B2C wires and exports sustained the strong traction.
- FMEG business grew 25 per cent YoY to Rs 2,440 million in Q2FY21 from Rs 1,956 million in Q2FY20. Growth was resilient across most categories and regions. Profitability in Q2 improved sharply despite rising input costs on account of calibrated pricing actions, premiumisation and working capital interventions.
- PBT grew 25 per cent YoY to Rs 2,880 million in Q2FY21 from Rs 2,303 million in Q2FY20 reflecting improved profitability.
- PAT grew 14 per cent YoY toRs 2,216 million in Q2FY21 from Rs 1,938 million in PAT margin at 10.5 per cent in Q2FY21, was up 184bps YoY vs Q2FY20.
- As of 30 September 2020, net cash position increased to Rs 6,276 ROCE stood at 26.6 per cent in Q2FY21.
Highlights on consolidated performance for the first half ended September 30, 2020
- Revenue declined 26 per cent YoY to Rs 30,903 million.
- Wires and cables business declined 27 per cent YoY to Rs 25,343 million in 1HFY21 from Rs 34,916 million in 1HFY20 hurt by severe impact of pandemic and lockdowns.
- FMEG business declined 12 per cent YoY to Rs 3,818 million in 1HFY21 from Rs 4,357 million in 1HFY20.
- PBT declined 25 per cent YoY to Rs 3,271 million in 1HFY21 from Rs 4,369 million in 1HFY20 on account of adverse operating leverage seen in Q1.
- PAT was up 3 per cent YoY at Rs 3,391 million in 1HFY21 from Rs 3,291 million in 1HFY20. PAT margin at 11.0 per cent in 1HFY21, was up 313bps YoY partly reflecting few one off gains.