Polycab India Q3 PAT climbs 19% to Rs 264 cr

Polycab India's consolidated net profit jumped 19.1% to Rs 263.62 crore on 11.6% rise in net sales to Rs 2,798.83 crore in Q3 December 2020 over Q3 December 2019.

Consolidated profit before tax (PBT) soared 22.1% to Rs 354.11 crore in Q3 December 2020 as against Rs 289.97 crore in Q3 December 2019. Total tax expense for the quarter increased 31.99% to Rs 90.49 crore as against Rs 68.56 crore in Q3 December 2019. The Q3 result was declared on Saturday, 23 January 2021.

Wires & cables business grew 6% Y-o-Y (year-on-year) to Rs 2,270.30 crore in Q3 FY21 from Rs 2,150.20 crore in Q3 FY20 despite a high base. Construction activities are progressing, albeit at a slower pace as consumer demand remains robust with improving sentiment. Wires saw strong traction, as per the company's disclosure.

FMEG business grew 41% Y-o-Y to Rs 305.50 crore in Q3 FY21 from Rs 216.60 crore in Q3 FY20 on the back of buoyant consumer demand, distribution expansion, better product mix and pricing actions. Growth was broad based across most categories and regions. Profitability in Q3 FY21 improved despite higher A&P spends and input cost pressures due to improved product mix and calibrated pricing actions.

Commenting on the Q3 performance, Inder T. Jaisinghani, the chairman and managing director (MD) of Polycab India, has said that: "We saw a great all-round performance in Q3 amidst lingering challenges. Business trends continue to improve and demand for B2C products remains buoyant with improving consumer sentiment. Accordingly, our top line has bounced back to growth along with considerable progress in return ratios, cashflow, financial position, distribution expansion and strategic initiatives."

"The results demonstrate the durability of our business model as well as our strong execution capability. Our relentless focus on providing quality solutions to customers along with strong organisation capabilities will augment Polycabs stature in the 'Electricals' ecosystem and provide a long pathway for profitable growth," he added.

As of 31 December 2020, net cash position doubled to Rs 1,333.50 crore while the Return on Capital Employed (ROCE) stood at 30.6% in Q3 FY21.

Shares of Polycab India dropped 5.22% to Rs 1,212.60. 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.

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