May 28, 2024

Polycab India announces its Q3 FY23 results – highest ever Q3 revenues

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Mumbai, January 21, 2023:  Polycab India Limited (BSE: 542652, NSE: POLYCAB) today announced its consolidated results for the third quarter and nine months ended December 31, 2022.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We continued our strong quarterly performance, registering highest ever 3rd quarterly revenues in Q3FY23. Moreover, we achieved the highest ever quarterly 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 2 more Directors. The new Board is more diverse, with 20% representation of women directors, in-line with globally followed best-in-class corporate governance practices

Key Highlights (Q3 FY23)

§  Revenue grew 10% YoY to ₹ 37,152 mn in spite of high base, lower commodity prices and higher inflation on the back of healthy volume growth in Cables & Wires business.

§  Wires and Cables business revenue grew 11% on YoY basis to  32,878 mn, which was largely driven by domestic distribution business. The outperformance was primarily on account of benefits realized through the merger of HDC and LDC verticals last year. The Company also registered highest ever quarterly production volume in Q3FY23.

§  FMEG business was almost flat YoY and grew 12% QoQ despite challenging business environment.

§  EBITDA margin continued to improve, increasing by 73 bps QoQ to 13.5% on the back of better operating leverage despite input cost pressures and almost 4x increase in A&P spends

§  PAT grew by 45% YoY to ₹ 3,608 mn from ₹ 2,484 mn in Q3 FY22. PAT margin stood at 9.7% for the quarter

§  As of 31st December 2022, net cash position improved to ₹ 18.7 bn against ₹ 6.7 bn net cash during the same period last year

Key Highlights (9M FY23)

§  Revenue grew 19% YoY to ₹ 97,841 mn from ₹ 82,338 mn in 9M FY22

§  Wires and cables business revenue grew 20% on YoY basis to  86,022 mn from  71,843 mn in 9M FY22. Domestic distribution driven business grew by 25% YoY on the back of strong volume growth of over 26%.

§  Exports revenue exports grew by 32% YoY. Overall, exports business contributed to 8.6% of consolidated revenue in 9MFY23.

§  FMEG business grew 8% YoY to  9,483 mn from  8,752 mn in 9M FY22. Work on realignment of distribution channel, brand building, new product development, premiumization of offerings and influencer management program are progressing well. These initiatives will help drive revenue growth and margin expansion for the FMEG business

§  EBITDA grew 58% YoY to ₹ 12,397 mn from ₹ 7,867 mn in 9MFY22. Margins improved by 312 bps to 12.7%.

§  Reported PAT increased by 64% YoY to  8,538 mn from  5,199 mn in 9MFY22. PAT margin improved by 241 bps to 8.7%