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Results
19-Oct-23
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Analysis
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Polycab India
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Net up 59% on strong operating show
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Consolidated net sales (including other operating income) of Polycab India for the quarter ended Sep 2023 has increased 26.57% to Rs 4217.7 crore. Operating profit margin has jumped from 12.83% to 14.44%, leading to 42.39% rise in operating profit to Rs 608.93 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 67.39% to 71.00%. Purchase of finished goods cost fell from 4.65% to 3.16%. Employee cost decreased from 3.59% to 3.40%. Other expenses fell from 11.01% to 9.15%. Selling and administration expenses rose from 0.52% to 0.97%. Freight charges fell from 2.79% to 1.89%. Other direct service cost rose from 0.78% to 0.87%. PBIDT rose 51.43% to Rs 644.25 crore. Provision for interest rose 92.73% to Rs 26.79 crore. PBDT rose 50.04% to Rs 617.46 crore. Provision for depreciation rose 15.36% to Rs 60.3 crore. Profit before tax grew 55.08% to Rs 557.16 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 127.39 crore, compared to Rs 87.83 crore. Effective tax rate was 22.86% compared to 24.50%. Minority interest increased 57.89% to Rs 4.20 crore. Net profit attributable to owners of the company increased 58.81% to Rs 425.57 crore. - Sales of Wires and Cables segment has gone up 28.90% to Rs 3,804.70 crore (accounting for 87.74% of total sales) driven by strong volume growth. Sales of FMEG segment has gone up 8.06% to Rs 329.97 crore (accounting for 7.61% of total sales). FMEG business exhibited marginal growth of 8% YoY in Q2FY24, despite the larger businesses of Fans and Lights showing de-growth due to continued weakness in consumer demand. Sales of Others segment rose 91.81% to Rs 201.51 crore (accounting for 4.65% of total sales). Inter-segment sales rose Rs 50.45 crore to Rs 107.38 crore.
- Profit before interest, tax and other unallocable items (PBIT) has jumped 58.91% to Rs 571.16 crore. PBIT of Wires and Cables segment rose 60.20% to Rs 554.69 crore (accounting for 97.12% of total PBIT). PBIT of FMEG segment fell 124.35% to Rs -6.02 crore (accounting for -1.05% of total PBIT). PBIT of Others segment rose 41.80% to Rs 22.49 crore (accounting for 3.94% of total PBIT).
- PBIT margin of Wires and Cables segment rose from 11.73% to 14.58%. PBIT margin of FMEG segment fell from negative 0.88% to negative 1.82%. PBIT margin of Others segment fell from 15.09% to 11.16%. Overall PBIT margin rose from 10.69% to 13.17%.
- FMEG: Switchgears and Conduit Pipes & Fittings businesses showed
remarkable growth during the quarter, both on YoY and QoQ basis. Switches business
too exhibited excellent growth, with sales growing ~2x YoY, on a strong base.
Luminaires business had a strong quarter, benefitting from the set-up of its separate
GTM vertical, under Project LEAP. Geographically, both West and South regions
showed yearly as well as sequential growth during the quarter, while the North region
showed sequential growth. Improvement in mix towards higher margin products
contained bottom-line de-growth despite higher A&P spends during the quarter.
- W&C : Continued strong demand supported by government capex and
robust real-estate off-take enabled sustenance of growth momentum. Domestically, both distribution driven business and institutional business exhibited strong
performance. Geographically, growth was broad based, with highest growth coming
from North region. Cables growth continued to outperform wires growth. Revenue
from international business contributed 9.3% of the consolidated revenue for the
quarter. The Company expanded its global footprint to 76 countries.
Half-yearly performance Net sales (including other operating income) of Polycab India has increased 33.58% to Rs 8107.08 crore. Operating profit margin has jumped from 12.17% to 14.28%, leading to 56.68% rise in operating profit to Rs 1,157.48 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 69.00% to 70.44%. Purchase of finished goods cost fell from 4.89% to 3.54%. Employee cost decreased from 3.66% to 3.37%. Other expenses fell from 10.45% to 9.23%. Selling and administration expenses rose from 0.59% to 0.82%. Freight charges fell from 2.35% to 1.92%. Other direct service cost fell from 0.85% to 0.80%. Other income rose 135.75% to Rs 99.32 crore. PBIDT rose 60.95% to Rs 1256.8 crore. Provision for interest rose 131.47% to Rs 51.71 crore. PBDT rose 58.87% to Rs 1205.09 crore. Provision for depreciation rose 13.74% to Rs 117.44 crore. Profit before tax grew 65.98% to Rs 1,087.65 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 254.72 crore, compared to Rs 159.88 crore. Effective tax rate was 23.42% compared to 24.48%. Minority interest increased 42.02% to Rs 7.74 crore. Net profit attributable to owners of the company increased 69.14% to Rs 825.19 crore. - Sales of Wires and Cables segment has gone up 36.98% to Rs 7,338.48 crore (accounting for 88.02% of total sales). Sales of FMEG segment has gone up 5.05% to Rs 644.51 crore (accounting for 7.73% of total sales). Sales of Others segment rose 72.91% to Rs 354.34 crore (accounting for 4.25% of total sales). Inter-segment sales rose Rs 95.42 crore to Rs 185.49 crore.
- Profit before interest, tax and other unallocable items (PBIT) has jumped 68.71% to Rs 1,106.08 crore. PBIT of Wires and Cables segment rose 72.72% to Rs 1,076.95 crore (accounting for 97.37% of total PBIT). PBIT of FMEG reported loss of Rs 11.69 crore compared to profit of Rs 3.76 crore. PBIT of Others segment rose 44.03% to Rs 40.82 crore (accounting for 3.69% of total PBIT).
- PBIT margin of Wires and Cables segment rose from 11.64% to 14.68%. PBIT margin of FMEG segment fell from 0.61% to 1.81%. PBIT margin of Others segment fell from 13.83% to 11.52%. Overall PBIT margin rose from 10.62% to 13.27%.
Management Comments :
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We continued our strong business performance in Q2, enabling the half yearly revenue and profitability to be the highest ever in the Company’s history. Favourable demand environment with multiple avenues of growth along with our strong focus on execution has laid the foundation for the current year to be a remarkable chapter in the history of our organization. During the quarter, we unveiled our new brand identity, symbolizing our commitment to innovation, technology, safety, and sustainability with a vision of "Connecting all to a brighter future." Our new visual identity, inspired by the colours of dawn, embodies our commitment to a brighter future and reaching new heights. We`ve also updated our brand tagline from the existing positioning of `Connection Zindagi Ka` to `Ideas. Connected.` which reflects our vision for a future where innovative products simplify lives, and it all begins with a thoughtful idea. The Company is on an exciting journey towards a more promising future, and I believe the brand refresh will act as a catalyst in accelerating this favourable advancement”.
Other developmentsEquity capital increased from Rs 149.65 crore as of 30 September 2022 to Rs 150.01 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00. Promoters’ stake was 65.99% as of 30 September 2023 ,compared to 67.97% as of 30 September 2022 . Loan funds rose to Rs 212.84 crore as of 30 September 2023 from Rs 112.23 crore as of 30 September 2022. Inventories rose to Rs 3,431.17 crore as of 30 September 2023 from Rs 2,412.93 crore as of 30 September 2022. Sundry debtors were higher at Rs 1,321.33 crore as of 30 September 2023 compared to Rs 960.40 crore as of 30 September 2022. Cash and bank balance declined from Rs 487.76 crore as of 30 September 2022 to Rs 408.88 crore as of 30 September 2023. Investments declined from Rs 1,287.05 crore as of 30 September 2022 to Rs 1,278.84 crore as of 30 September 2023. Fixed assets increased to Rs 2,468.43 crore as of 30 September 2023 from Rs 2,093.60 crore as of 30 September 2022. Intangible assets declined from Rs 21.47 crore to Rs 4.62 crore.
Cash flow from operating activities decreased to Rs 292.97 crore for YTD ended September 2023 from Rs 957.57 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 356.31 crore, compared to Rs 201.29 crore during the YTD ended September 2022. Polycab India : Consolidated Results | | Quarter ended | Year to Date | Year ended |
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Particulars | 202309 | 202209 | Var.(%) | 202309 | 202209 | Var.(%) | 202303 | 202203 | Var.(%) |
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Net Sales (including other operating income) | 4,217.70 | 3,332.36 | 26.57 | 8,107.08 | 6,068.92 | 33.58 | 14,107.78 | 12,203.76 | 15.60 | OPM (%) | 14.44 | 12.83 | 160 bps | 14.28 | 12.17 | 210 bps | 13.13 | 10.37 | 276 bps | OP | 608.93 | 427.66 | 42.39 | 1,157.48 | 738.75 | 56.68 | 1,852.10 | 1,265.22 | 46.39 | Other Inc. | 35.32 | -2.22 | LP | 99.32 | 42.13 | 135.75 | 133.33 | 89.92 | 48.28 | PBIDT | 644.25 | 425.44 | 51.43 | 1,256.80 | 780.88 | 60.95 | 1,985.43 | 1,355.14 | 46.51 | Interest | 26.79 | 13.90 | 92.73 | 51.71 | 22.34 | 131.47 | 59.76 | 35.19 | 69.82 | PBDT | 617.46 | 411.54 | 50.04 | 1,205.09 | 758.54 | 58.87 | 1,925.67 | 1,319.95 | 45.89 | Depreciation | 60.3 | 52.27 | 15.36 | 117.44 | 103.25 | 13.74 | 209.16 | 201.52 | 3.79 | PBT | 557.16 | 359.27 | 55.08 | 1087.65 | 655.29 | 65.98 | 1716.51 | 1118.43 | 53.47 | Share of Profit/(Loss) from Associates | 0 | -0.81 | - | 0 | -2.09 | - | -9.26 | -2.56 | -261.72 | PBT before EO | 557.16 | 358.46 | 55.43 | 1087.65 | 653.2 | 66.51 | 1707.25 | 1115.87 | 53.00 | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | PBT after EO | 557.16 | 358.46 | 55.43 | 1087.65 | 653.2 | 66.51 | 1707.25 | 1115.87 | 53.00 | Taxation | 127.39 | 87.83 | 45.04 | 254.72 | 159.88 | 59.32 | 424.17 | 270.63 | 56.73 | PAT | 429.77 | 270.63 | 58.80 | 832.93 | 493.32 | 68.84 | 1283.08 | 845.24 | 51.80 | Minority Interest (MI) | 4.2 | 2.66 | 57.89 | 7.74 | 5.45 | 42.02 | 12.3 | 8.71 | 41.22 | Net profit | 425.57 | 267.97 | 58.81 | 825.19 | 487.87 | 69.14 | 1270.78 | 836.53 | 51.91 | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 72.05 | - | Net profit after discontinued operations | 425.57 | 267.97 | 58.81 | 825.19 | 487.87 | 69.14 | 1270.78 | 908.58 | 39.86 | EPS (Rs)* | 28.35 | 17.85 | 58.81 | 54.98 | 32.51 | 69.14 | 84.67 | 55.73 | 51.91 | | * EPS is on current equity of Rs 150.09 crore, Face value of Rs 10, Excluding extraordinary items. | # EPS is not annualised | bps : Basis points | EO : Extraordinary items | Figures in Rs crore | Source: Capitaline Corporate Database |
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Polycab India : Consolidated Segment Results | | Quarter ended | Year to Date | Year ended |
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| % of (Total) | 202309 | 202209 | Var.(%) | % of (Total) | 202309 | 202209 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
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Sales | Wires and Cables | 87.74 | 3,804.70 | 2,951.72 | 28.90 | 88.02 | 7,338.48 | 5,357.42 | 36.98 | 88.10 | 12,777.50 | 10,793.81 | 18.38 | FMEG | 7.61 | 329.97 | 305.36 | 8.06 | 7.73 | 644.51 | 613.51 | 5.05 | 8.69 | 1,260.74 | 1,254.38 | 0.51 | Others | 4.65 | 201.51 | 105.06 | 91.81 | 4.25 | 354.34 | 204.92 | 72.91 | 3.20 | 464.71 | 370.18 | 25.54 | Copper | 0.00 | 0.00 | 0.00 | - | Total Reported Sales | 100.00 | 4,336.17 | 3,362.13 | 28.97 | 100.00 | 8,337.32 | 6,175.85 | 35.00 | 100.00 | 14,502.95 | 12,418.37 | 16.79 | Less: Inter segment revenues | | 107.38 | 50.45 | 112.82 | | 185.49 | 95.42 | 94.40 | | 356.47 | 174.38 | 104.42 | Net Sales | 100.00 | 4,228.79 | 3,311.68 | 27.69 | 100.00 | 8,151.83 | 6,080.43 | 34.07 | 100.00 | 14,146.48 | 12,243.99 | 15.54 | PBIT | Wires and Cables | 97.12 | 554.69 | 346.25 | 60.20 | 97.37 | 1,076.95 | 623.52 | 72.72 | 97.32 | 1,672.43 | 1,054.48 | 58.60 | FMEG | -1.05 | -6.02 | -2.68 | -124.35 | -1.06 | -11.69 | 3.76 | PL | -0.33 | -5.61 | 19.62 | PL | Others | 3.94 | 22.49 | 15.86 | 41.80 | 3.69 | 40.82 | 28.34 | 44.03 | 3.01 | 51.71 | 49.90 | 3.63 | Copper | 0.00 | 0.00 | 0.00 | - | Total PBIT | 100.00 | 571.16 | 359.43 | 58.91 | 100.00 | 1,106.08 | 655.63 | 68.71 | 100.00 | 1,718.54 | 1,124.00 | 52.89 | Less : Interest | | 26.79 | 13.90 | 92.71 | | 51.71 | 22.34 | 131.54 | | 59.76 | 35.19 | 69.81 | Add: Other un-allcoable | | 12.79 | 12.93 | -1.11 | | 33.27 | 19.90 | 67.18 | | 48.48 | 27.05 | 79.23 | PBIT Margin(%) | Wires and Cables | | 14.58 | 11.73 | 284.86 | | 14.68 | 11.64 | 303.69 | | 13.09 | 9.77 | 331.96 | FMEG | | -1.82 | -0.88 | -94.52 | | -1.81 | 0.61 | -242.62 | | -0.44 | 1.56 | -200.89 | Others | | 11.16 | 15.09 | -393.53 | | 11.52 | 13.83 | -231.05 | | 11.13 | 13.48 | -235.22 | Copper | | 0.00 | 0.00 | 0.00 | PBT | 100.00 | 557.15 | 358.45 | 55.43 | 100.00 | 1,087.64 | 653.20 | 66.51 | 100.00 | 1,707.26 | 1,115.86 | 53.00 |
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