Polycab India jumps after strong Q3 revenue growth

Polycab India rose 3.74% to Rs 1122.95 after consolidated net profit jumped 13.16% to Rs 218.78 crore on 23.83% increase in net sales to Rs 2,507.31 crore in Q3 December 2019 over Q3 December 2018, driven by healthy growth across segments.

On a consolidated basis, profit before tax fell 0.13% to Rs 289.97 crore in Q3 December 2019 as compared to Rs 290.36 crore in Q3 December 2018. Total tax expense fell 29.13% to Rs 68.56 crore in Q3 December 2019 over Q3 December 2018. The result was unveiled after market hours yesterday, 21 January 2020.

The wires and cables business grew 20% to Rs 2,150.20 crore in Q3 December 2019 from Rs 1,795.60 crore in Q3 December 2018. Fast moving electrical goods (FMEG) segment grew 34% to Rs 216.60 crore in Q3 December 2019 as against Rs 161.70 crore in Q3 December 2018.

Consolidated profit after tax (PAT) margin fell 73 bps to 8.8% in Q3 December 2019 over Q3 December 2018. Return on capital employed (ROCE) stood at 30.6% and return on equity (ROE) at 23.5% in Q3 December 2019.

Commenting on Polycab's Q3 results, Inder T. Jaisinghani, the chairman and managing director of Polycab India, has stated that, We have delivered yet another quarter of resilient growth. Our top line growth remains strong across segments helped by our robust pan India distribution network coupled with exports while profitability improved sequentially on the back of enhanced and evolving product mix and various strategic initiatives which we have implemented over the past few years. As we enter the new decade we will continue to build on our current strengths while acquiring new ones to stay competitive and drive profitable growth."

Polycab India is engaged in the business of manufacturing and selling wires and cables, and fast moving electrical goods (FMEG) under the Polycab brand. The company operates through three segments: wires & cables, fast moving electrical goods (FMEG) and others.

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