On January 18, 2024, Polycab India Limited (BSE, NSE: POLYCAB) announced its Q3 2023-24 results, clocking strong Revenue growth (the highest in any quarter of the Company) along with a rise in PAT and EBITDA.
General Result Takeaways
Here are the overall highlights of Q3 results (including financial results):
- Overall Q3 FY24 Revenue stood at ₹43,405 Mn (₹4340.5 Cr), a rise of 17% YoY.
- For Q3 FY24, the Revenue of the Company witnessed growth of 17% YoY led by robust volume growth in the wires & cables business.
- The Revenue from the Wires & Cables business for Q3 FY24 rose by 18% YoY, due to healthy volume growth.
- The demand for the Company’s products remained encouraging due to the Indian government’s consistent focus on infrastructure development and an uptick in private capital expenditure.
- On the domestic front, institutional and distribution businesses registered strong performances.
- Regarding the Company’s international business, there was a 6.2% Revenue contribution to the overall consolidated Revenue of the Company in Q3 FY24. Going ahead, the Company estimates a robust global business.
- The EBIT margin for Q3 FY24 was recorded at 14.0%, a YoY improvement of 20 bps.
- The EBITDA margin for Q3 FY24 declined 13.1%, by ~130 bps QoQ, primarily due to higher A&P spending.
- In Q3 FY24, the Company clocked the highest-ever PAT of ₹4,165 Mn (₹416.5 Cr) in any quarter, marking a growth of 15% YoY.
- The PAT margin was 9.6% for the quarter.
- At the end of Q3 FY24, the Company’s net cash position improved to ₹18.4 Bn against ₹15.3 Bn in the previous quarter.
- In Q3 FY24, the FMEG business witnessed a de-growth of 15% YoY, mainly led by sustained weakness in demand from consumers.
- The segment of Fans grew on a sequential basis but experienced a de-growth on a YoY basis. This was the result of a higher base in the previous year because of stock liquidation activities before the BEE transition.
- The segment of Lights declined, adversely affected by pricing erosion. This was witnessed in the last quarter as well.
- The Switches and Switchgear segments showed healthy growth during Q3 FY24.
- In Q3 FY24, the Company merged the Power and FMEG businesses.
Additional Read: Q3 Results Dashboard
Q3 Result Details from the Management Commentary
The Chairman and MD of Polycab India Limited had some key details of the results to share and these are mentioned below:
- The Company’s strong business momentum in Q3 FY24 has boosted the Company’s Revenue to reach its highest-ever quarterly Revenue.
- Nine-monthly profit and revenues are also at new Company highs.
- The success of the Q3 FY24 result is largely due to a resilient business model and proficient business operations.
- In Q3 FY24, the Company boasts an innovative and diverse product portfolio, teamed with an extensive distribution network catering to different segments of the market with efficiency.
Q3 FY24 Result Summary
The largest manufacturer of cables and wires, Polycab India Limited (PIL) is also one of the fastest-growing companies in the FMEG segment with a turnover (consolidated) of more than ₹141 billion recorded in the previous financial year. The Company has the distinction of offering innovative yet safe and efficient products to a diverse client base. nover of INR 141+ Bn in FY23. Via its widespread distribution network of 4,300+ authorised dealers, not to mention 205,000+ retail outlets, the business operations of the Company span the gamut of India with 25 manufacturing plants and 23 warehouses, along with several offices. The Company had over 4,400 employees at the end of Q3 FY24 and boasts a global footprint in 76 countries.
Additional Check: Polycab India Limited Share Price
As the Company releases its Q3 FY24 results, it displays its highest-ever quarterly Revenue and its highest Revenue in 9 months. Apart from this, with EBITDA and PAT up, the Company continues to hold a leadership position in its sector and industry in the Indian market.
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Source: BSE Polycab India Limited Press Release
