Last Updated on October 28, 2023 by BFSLTeam BFSLTeam
Polycab India Limited (PIL) stands as the leading manufacturer of Wires and Cables in India, and it’s among the fastest-growing FMEG companies. Let’s have an overlook on their Q2 results.
Table of Content
Key Highlights –
Revenue Growth
- Revenue grew by 27% YoY in Q2 FY24, driven by strong volume growth in the wires & cables business.
Wires & Cables Business
- Q2 FY24 revenue increased by 27% YoY due to strong volume growth.
- Strong demand was supported by government capex and robust real-estate take-off.
- Both distribution-driven and institutional businesses performed well domestically.
- Broad-based geographical growth, with the highest growth in the North region.
- Cables outperformed wires in terms of growth.
- International business contributed 9.3% of consolidated revenue, expanding to 76 countries.
Additional Read: Q2 Results Dashboard
FMEG Business
- Marginal 8% YoY growth in Q2 FY24.
- Fans and Lights showed de-growth due to weak consumer demand.
- The Switchgears, Conduit Pipes & Fittings business exhibited remarkable growth.
- The Switches business grew ~2x YoY.
- The Luminaires business benefited from Project LEAP.
- Geographical growth in the West and South regions, with sequential growth in the North.
- Margin improvement despite higher A&P spends.
Other Segment (EPC Business)
- The “Other” segment primarily comprises of EPC (Engineering, Procurement, and Construction) business.
- In H1 FY24, the total income for this segment reached ₹2,835 Mn, showing an impressive 80% year-on-year (YoY) growth.
- Quarterly revenue in this segment increased significantly, with a 95% YoY growth and a 31% quarter-on-quarter (QoQ) growth.
- Segmental EBIT (Earnings Before Interest and Taxes) during H1 FY24 and Q2 FY24 witnessed substantial YoY growth, with increases of 35% and 26% respectively.
- The half-yearly margin for this segment was recorded at 11.7%.
- Looking forward, there is an expectation of an annual sustainable operating margin in this business to be in the high single digits over the mid-to-long term.
Financial Metrics
- EBITDA margin improved by ~160 bps YoY to 14.4%.
- Highest ever quarterly PAT of ₹4,298 Mn in Q2 FY24, a 59% YoY growth with a margin improvement of ~210 bps.
- Net cash position increased to ₹15.3 Bn as of 30th September 2023 from ₹10.1 Bn in the last quarter.
Additional Read: Polycab India Share Price
Six Months Ended September 30, 2023 (H1 FY24)
- Total revenue reached ₹81,071 Mn, marking a substantial 34% year-on-year (YoY) growth.
- Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the same period stood at ₹11,575 Mn, showing a robust 57% YoY increase.
- Profit After Tax (PAT) for H1 FY24 amounted to ₹8,329 Mn, reflecting an impressive 69% YoY growth.
Second Quarter Ended September 30, 2023 (Q2 FY24)
- In Q2 FY24, the revenue totalled ₹42,177 Mn, demonstrating a noteworthy 27% YoY increase.
- EBITDA for the same quarter reached ₹6,089 Mn, indicating a substantial 43% YoY growth.
- The Profit After Tax (PAT) for Q2 FY24 amounted to ₹4,298 Mn, showing a commendable 59% YoY growth.
Polycab India: Record Profits and Visionary Brand Refresh
On October 18, 2023, Polycab India Limited (BSE: 542652, NSE: POLYCAB) revealed their Q2 and first-half fiscal year results, marking the highest-ever revenue and profitability in the company’s history. Chairman and Managing Director, Mr. Inder T. Jaisinghani, attributed this success to strong business momentum and a favourable demand landscape. The company also unveiled a new brand identity emphasising innovation, technology, safety, and sustainability, along with a fresh tagline, “Ideas. Connected,” signifying their commitment to simplifying lives through innovative products. This rebranding is set to propel their journey toward a brighter future.
Consolidated Cash Flow Statement
| Quarter | Year To Date | ||||
| Particulars (₹ Mn) | Q2 FY24 | Q1 FY24 | Q2 FY23 | H1 FY24 | H1 FY23 |
| Net cash flow from operating accounts | 7,010 | -4,080 | 11,628 | 2,930 | 9,576 |
| Net cash Flow/ (used in) investing activities | -5,200 | 6,823 | -11,265 | 1,623 | -7,723 |
| Net cash Flow/ (used in) financial activities | -788 | -2,717 | -36 | -3,504 | -2,131 |
| Net Increase/ (Decrease) in cash and cash equivalents | 1,022 | 26 | 328 | 1,048 | -279 |
| Shareholder | Percentage |
| Promoters | 65.9% |
| FII | 12.4% |
| DII | 6.1% |
| QIB + AIF | 2.0% |
| Others | 13.6% |
Note: As of 30th September, 2023; DII (Domestic Institutional Investors) includes “Mutual Funds”. FII ( Foreign Institutional Investors) includes “Foreign Portfolio – Corp” and “Foreign Corporate Bodies”. QIB/AIF stands for “Qualified Institutional Buyer”/”Alternative Investment Fund”
About Polycab India
Polycab India Limited (PIL) stands as the leading manufacturer of Wires and Cables in India, and it’s among the fastest-growing FMEG companies. Their consolidated turnover in FY23 exceeded ₹141 billion. PIL is committed to delivering innovative, safe, and energy-efficient products to a diverse clientele through a robust network of 4,300+ authorised dealers and 205,000+ retail outlets. Their extensive operations encompass 25 manufacturing facilities, 14 offices, and 23 warehouses, serving customers in 76 countries worldwide. With a team of over 4,400 dedicated employees, PIL upholds strong governance, customer-centric values, community service, and a deep commitment to ecological awareness.
Source-
- https://www.bseindia.com/corporates/anndet_new.aspx?newsid=4931ca14-3811-4849-a611-5a601d9ec6c1
- https://www.bseindia.com/corporates/anndet_new.aspx?newsid=001f656e-9877-4640-b9fe-6022163fcad3
- https://www.bseindia.com/corporates/anndet_new.aspx?newsid=4cde0026-2e7d-4d64-87ba-27b16fd4fc40
