Polycab India Q1 PAT tumbles 36% to Rs 75 cr

On a consolidated basis, Polycab India's net profit dropped 35.97% to Rs 75.26 crore on 92.55% rise in revenue from operations to Rs 1,880.51 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).

The profit after tax (PAT) declined on account one off gains in Q1 FY21, while the PAT margin stood at 4% in Q1 FY22. Profit before tax soared 151.25% to Rs 98.19 crore in Q1 FY22 as against Rs 39.08 crore in Q1 FY21. Total tax expense for the quarter stood at Rs 22.93 crore compared with tax rebate of Rs 78.46 crore in the corresponding quarter, last year.

The consolidated EBITDA surged 144% to Rs 137.20 crore in Q1 June 2021, registering a growth of 144% Y-o-Y (year-on-year) from Q1 June 2020. As of 30 June 2021, Polycab India's net cash position was at Rs 671.60 crore, growing 3.3x over the same period last year.

The company's wires and cables business doubled on Y-o-Y basis to Rs 1,586.20 crore in Q1 FY22 from Rs 793.50 crore in Q1 FY21. In domestic business, the cables outperformed wires in Q1 partly on account of relatively favourable base. The distribution as well as institutional business was greater than 2x as against last year. Exports contribution to overall revenue stood at 6% in Q1 FY22 as compared to 4.5% in Q4 FY21.

FMEG business grew 39% Y-o-Y to Rs 191.90 crore in Q1 FY22 from Rs 137.80 crore in Q1 FY21, despite closure of retail shops across many large states. The distribution expansion continued with greater thrust on digital marketing campaigns. The innovation driven product development remains a key focus area.

Commenting on the performance, Inder T. Jaisinghani, chairman and managing director (MD) of Polycab India, said: "First quarter performance has been encouraging. Despite challenges posed by lockdowns in many states, we were able to record much better business compared to last year. We remain diligent in managing costs and navigating the volatile demand environment. More importantly, we are progressing well on our strategic agenda and achieving new milestones which will drive transformation over mid to long term. We continue to serve the communities and fulfil our purpose in meaningful ways."

Polycab India manufactures and sells various types of cables, wires, electric fans, LED lighting and luminaires, switches and switchgears, solar products, pumps and conduits and accessories. The company caters to various public and private institutions across a diverse set of industries, as well as retail customers through its B2C business.

Shares of Polycab India gained 1.99% to end at Rs 1,992.35 on Tuesday, 20 July 2021. The markets were closed on Wednesday on account of Eid al-Adha.

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