Polycab has reported stronger than expected numbers led by healthy revival in domestic B2C segment and exports.

October 24, 2020

Polycab India Limited has announced its consolidated results for the second quarter and first half ended September 30, 2020.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “I’m delighted with our Q2 performance given the context of current challenging business environment. Overall demand trends are encouraging and many of our consumer facing businesses have started seeing growth compared to last year. At the same time, we have tightened our belts to improve profitability without bargaining on long term brand development and innovation initiatives. While we remain optimistic of robust economic potential over mid to long term, government initiatives and reviving consumer sentiment should support demand in months to come. We remain focused on augmenting our brand positioning in the Electricals space and creating long term shareholder value.”

Highlights on consolidated performance for the second quarter ended September 30, 2020

Revenue declined 6% YoY to Rs. 21,137 mn as against 50% YoY decline seen in Q1. Improving overall business environment with staggered unlocking led to better performance sequentially.

Wires and cables business declined 7% YoY to Rs. 17,408 mn in Q2FY21 from Rs. 18,811 mn in Q2FY20. The business saw improving momentum with resumption of economic activities. B2C wires and exports sustained the strong traction.

FMEG business grew 25% YoY to Rs. 2,440 mn in Q2FY21 from Rs. 1,956 mn in Q2FY20. Growth was resilient across most categories and regions. Profitability in Q2 improved sharply despite rising input costs on account of calibrated pricing actions, premiumisation and working capital interventions.
PBT grew 25% YoY to Rs. 2,880 mn in Q2FY21 from Rs. 2,303 mn in Q2FY20 reflecting improved profitability.
PAT grew 14% YoY to Rs. 2,216 mn in Q2FY21 from Rs. 1,938 mn in Q2FY20. PAT margin at 10.5% in Q2FY21, was up 184bps YoY vs Q2FY20.
As of 30 September 2020, net cash position increased to Rs 6,276 mn. ROCE stood at 26.6% in Q2FY21.

Highlights on consolidated performance for the first half ended September 30, 2020

Revenue declined 26% YoY to Rs. 30,903 mn.

Wires and cables business declined 27% YoY to Rs. 25,343 mn in 1HFY21 from Rs. 34,916 mn in 1HFY20 hurt by severe impact of pandemic and lockdowns.
FMEG business declined 12% YoY to Rs. 3,818 mn in 1HFY21 from Rs. 4,357 mn in 1HFY20.
PBT declined 25% YoY to Rs. 3,271 mn in 1HFY21 from Rs. 4,369 mn in 1HFY20 on account of adverse operating leverage seen in Q1.
PAT was up 3% YoY at Rs. 3,391 mn in 1HFY21 from Rs. 3,291 mn in 1HFY20. PAT margin at 11.0% in 1HFY21, was up 313bps YoY partly reflecting few one off gains.