Polycab India Q4 PAT rises 52% to Rs 214 cr

Polycab India spurted 5% to Rs 713.65 after the company reported a 52.4% rise in net profit to Rs 213.94 crore on 13.6% decline in net sales to Rs 2129.38 crore in Q4 March 2020 over Q4 March 2019.

Revenue was severely impacted by COVID-19 outbreak and subsequent lockdown during prime sales period, Polycab said. The company said PAT margin stood at 10.1% in Q4 March 2020, up by 441 basis points led by better operating profitability and lower income tax. Profit before tax surged 36.8% to Rs 283.14 crore in Q4 March 2020 from Rs 206.97 crore in Q4 March 2019. Tax expenses fell 45.3% to Rs 51.57 crore in Q4 March 2020 over Q4 March 2019.

Consolidated EBITDA jumped 20% to Rs 2948 crore in Q4 March 2020 over Q4 March 2019. EBITDA margin grew to 13.8% in Q4 March 2019 from 10% reported in Q4 March 2019, driven by improved sales mix, realisation and reduction in expenses

Polycab India's wires and cables business declined 11% to Rs 1843.40 crore in Q4 March 2020 from Rs 2063.20 crore in Q4 March 2019. Growth in exports and new product categories was offset by impact from restriction of movement during prime sales period. The FMEG business declined 6% to Rs 183.30 crore in Q4 March 2020 from Rs 195.30 crore in Q4 March 2019.

Commenting on the financial performance, Inder T. Jaisinghani, chairman and managing director, Polycab India said, "We achieved healthy underlying performance with improved profitability in FY20. Polycab maintained its dominant position in Wires and Cables and continues to expand its presence in the 'Electricals' ecosystem. The year was marked with strong business momentum despite significant headwinds however the outbreak of COVID-19 pandemic and its severe economic implications partly tapered growth. Our financial stability, inhouse backward integration, wide distribution channels and quality human capital, positioned us well to deal with any challenge."

Polycab India is engaged in the business of manufacturing and selling wires and cables, and fast moving electrical goods (FMEG) under the Polycab brand.

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