Capitaline

Results 16-May-23

Analysis

Polycab India

Sales up 9%, net up 32%

Consolidated net sales (including other operating income) of Polycab India for the quarter ended Mar 2023 has increased 8.91% to Rs 4323.68 crore.

Operating profit margin has jumped from 12% to 14.10%, leading to 27.96% rise in operating profit to Rs 609.54 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 73.29% to 69.20%. Purchase of finished goods cost rose from 3.34% to 4.01%. Employee cost increased from 2.69% to 2.82%. Other expenses rose from 8.46% to 9.49%. Selling and administration expenses rose from 0.43% to 0.58%. Freight charges rose from 2.03% to 2.09%. Other direct service cost rose from 0.79% to 0.95%.

Other income rose 206.30% to Rs 51.52 crore. PBIDT rose 34.05% to Rs 661.06 crore. Provision for interest rose 124.92% to Rs 28.16 crore.

PBDT rose 31.68% to Rs 632.9 crore. Provision for depreciation rose 6.37% to Rs 53.46 crore.

Profit before tax grew 34.63% to Rs 579.44 crore. Share of profit/loss was 1,621.62% lower at Rs -6.37 crore. Provision for tax was expense of Rs 144.65 crore, compared to Rs 104.68 crore. Effective tax rate was 25.24% compared to 24.34%. Minority interest increased 15.41% to Rs 3.67 crore. Net profit attributable to owners of the company increased 31.85% to Rs 424.75 crore.

Sales of Wires and Cables segment has gone up 15.21% to Rs 4,078.29 crore (accounting for 90.28% of total sales). Sales of FMEG segment has gone down 19.51% to Rs 305.22 crore (accounting for 6.76% of total sales). Sales of Others segment rose 28.08% to Rs 133.78 crore (accounting for 2.96% of total sales). Inter-segment sales rose Rs 50.71 crore to Rs 178.37 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 35.83% to Rs 590.80 crore. PBIT of Wires and Cables segment rose 43.61% to Rs 589.59 crore (accounting for 99.80% of total PBIT). PBIT of FMEG reported loss of Rs 6.97 crore compared to profit of Rs 10.48 crore. PBIT of Others segment fell 41.17% to Rs 8.18 crore (accounting for 1.38% of total PBIT).

PBIT margin of Wires and Cables segment rose from 11.60% to 14.46%. PBIT margin of FMEG segment fell from 2.76% to 2.28%. PBIT margin of Others segment fell from 13.31% to 6.11%. Overall PBIT margin rose from 10.81% to 13.08%.

Full year results analysis.

Net sales (including other operating income) of Polycab India has increased 15.60% to Rs 14107.78 crore. Operating profit margin has jumped from 10.37% to 13.13%, leading to 46.39% rise in operating profit to Rs 1,852.10 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 72.49% to 69.43%. Purchase of finished goods cost fell from 5.06% to 4.05%. Employee cost increased from 3.20% to 3.25%. Other expenses rose from 9.28% to 10.11%. Selling and administration expenses rose from 0.65% to 0.88%. Freight charges rose from 2.16% to 2.24%. Other direct service cost rose from 0.88% to 0.96%. Other income rose 48.28% to Rs 133.33 crore. PBIDT rose 46.51% to Rs 1985.43 crore. Provision for interest rose 69.82% to Rs 59.76 crore. PBDT rose 45.89% to Rs 1925.67 crore. Provision for depreciation rose 3.79% to Rs 209.16 crore. Profit before tax grew 53.47% to Rs 1,716.51 crore. Share of profit/loss was 261.72% lower at Rs -9.26 crore. Provision for tax was expense of Rs 425 crore, compared to Rs 270.63 crore. Effective tax rate was 24.89% compared to 24.25%. Minority interest increased 41.22% to Rs 12.30 crore. Net profit attributable to owners of the company increased 51.81% to Rs 1,269.95 crore.

Sales of Wires and Cables segment has gone up 18.38% to Rs 12,777.50 crore (accounting for 88.10% of total sales). Sales of FMEG segment has gone up 0.51% to Rs 1,260.74 crore (accounting for 8.69% of total sales). Sales of Others segment rose 25.54% to Rs 464.71 crore (accounting for 3.20% of total sales). Inter-segment sales rose Rs 174.38 crore to Rs 356.47 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 52.89% to Rs 1,718.54 crore. PBIT of Wires and Cables segment rose 58.60% to Rs 1,672.43 crore (accounting for 97.32% of total PBIT). PBIT of FMEG reported loss of Rs 5.61 crore compared to profit of Rs 19.62 crore. PBIT of Others segment rose 3.63% to Rs 51.71 crore (accounting for 3.01% of total PBIT).

PBIT margin of Wires and Cables segment rose from 9.77% to 13.09%. PBIT margin of FMEG segment fell from 1.56% to 0.44%. PBIT margin of Others segment fell from 13.48% to 11.13%. Overall PBIT margin rose from 9.05% to 11.85%.

Others

Equity capital increased from Rs 149.44 crore as of 31 March 2022 to Rs 149.77 crore as of 31 March 2023. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 66.20% as of 31 March 2023 ,compared to 68.08% as of 31 March 2022 .

Loan funds rose to Rs 169.04 crore as of 31 March 2023 from Rs 93.67 crore as of 31 March 2022. Inventories rose to Rs 2,951.38 crore as of 31 March 2023 from Rs 2,199.65 crore as of 31 March 2022. Sundry debtors were lower at Rs 1,246.60 crore as of 31 March 2023 compared to Rs 1,296.39 crore as of 31 March 2022. Cash and bank balance rose to Rs 695.24 crore as of 31 March 2023 from Rs 407.12 crore as of 31 March 2022. Investments rose to Rs 1,350.50 crore as of 31 March 2023 from Rs 773.31 crore as of 31 March 2022 . Fixed assets increased to Rs 2,313.09 crore as of 31 March 2023 from Rs 2,045.95 crore as of 31 March 2022. Intangible assets stood at Rs 4.62 crore.

Cash flow from operating activities increased to Rs 1,427.52 crore for year ended March 2023 from Rs 511.61 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 479.45 crore, compared to Rs 526.69 crore during the year ended March 2022.

Management Comments :
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “FY23 was a remarkable year for the Company, as we surpassed revenues of ? 140 Bn and profitability threshold of ? 10 Bn, to record highest ever revenues and PAT in the history of the Company. With robust demand on the anvil, we are confident of exhibiting continued strong growth in the near-to-mid term as well. Continuing to move forward towards adopting best corporate governance practices, we inducted another Independent Director on our Board today. We have also formulated our ESG Framework and Charter, aligned with International ESG protocols and guidelines, which will enable us to build resilience in the business, transform culture and create long-term value for all our stakeholders”

Polycab India : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	4,323.68	3,969.98	8.91	14,107.78	12,203.76	15.60
OPM (%)	14.10	12.00	210 bps	13.13	10.37	276 bps
OP	609.54	476.34	27.96	1,852.10	1,265.22	46.39
Other Inc.	51.52	16.82	206.30	133.33	89.92	48.28
PBIDT	661.06	493.16	34.05	1,985.43	1,355.14	46.51
Interest	28.16	12.52	124.92	59.76	35.19	69.82
PBDT	632.90	480.64	31.68	1,925.67	1,319.95	45.89
Depreciation	53.46	50.26	6.37	209.16	201.52	3.79
PBT	579.44	430.38	34.63	1716.51	1118.43	53.47
Share of Profit/(Loss) from Associates	-6.37	-0.37	-1,621.62	-9.26	-2.56	-261.72
PBT before EO	573.07	430.01	33.27	1707.25	1115.87	53.00
EO Income	0	0	-	0	0	-
PBT after EO	573.07	430.01	33.27	1707.25	1115.87	53.00
Taxation	144.65	104.68	38.18	425	270.63	57.04
PAT	428.42	325.33	31.69	1282.25	845.24	51.70
Minority Interest (MI)	3.67	3.18	15.41	12.3	8.71	41.22
Net profit	424.75	322.15	31.85	1269.95	836.53	51.81
P/(L) from discontinued operations net of tax	0	0	-	0	72.05	-
Net profit after discontinued operations	424.75	322.15	31.85	1269.95	908.58	39.77
EPS (Rs)*	28.36	21.51	31.85	84.79	55.85	51.81

* EPS is on current equity of Rs 149.77 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

Polycab India : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202303	202203	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
Wires and Cables	90.28	4,078.29	3,540.02	15.21	88.10	12,777.50	10,793.81	18.38
FMEG	6.76	305.22	379.22	-19.51	8.69	1,260.74	1,254.38	0.51
Others	2.96	133.78	104.45	28.08	3.20	464.71	370.18	25.54
Copper	0.00	0.00	0.00	-
Total Reported Sales	100.00	4,517.28	4,023.69	12.27	100.00	14,502.95	12,418.37	16.79
Less: Inter segment revenues		178.37	50.71	251.75		356.47	174.38	104.42
Net Sales	100.00	4,338.91	3,972.98	9.21	100.00	14,146.48	12,243.99	15.54
PBIT
Wires and Cables	99.80	589.59	410.56	43.61	97.32	1,672.43	1,054.48	58.60
FMEG	-1.18	-6.97	10.48	PL	-0.33	-5.61	19.62	PL
Others	1.38	8.18	13.90	-41.17	3.01	51.71	49.90	3.63
Copper	0.00	0.00	0.00	-
Total PBIT	100.00	590.80	434.94	35.83	100.00	1,718.54	1,124.00	52.89
Less : Interest		28.16	12.52	125.01		59.76	35.19	69.81
Add: Other un-allcoable		10.43	7.59	37.30		48.48	27.05	79.23
PBIT Margin(%)
Wires and Cables		14.46	11.60	285.91		13.09	9.77	331.96
FMEG		-2.28	2.76	-504.79		-0.44	1.56	-200.89
Others		6.11	13.31	-719.63		11.13	13.48	-235.22
Copper		0.00	0.00	0.00
PBT	100.00	573.06	430.02	33.26	100.00	1,707.26	1,115.86	53.00

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