 "Polycab India Q2 results: PAT up 3.4% at Rs 440 cr, misses expectations")
Rcreported a smaller-than-expected second-quarter profit on Thursday as competition hurt its high-margin retail business, with a rise in expenses pressuring the bottomline further.
The company said its consolidated net profit rose 3.4% to Rs 440 crore ($52.4 million) for the three months ended Sept. 30. Analysts, on average, had expected a profit of Rs 453 crore, according to LSEG data.
Revenue from operations rose 30.4% to Rs 5,498 crore, beating analysts' estimate of Rs 4,956 crore.
However, the increase in total expenses outpaced revenue growth, jumping 35% to Rs 4,984 crore.
KEY CONTEXT
Polycab India said that lower contribution from its high-margin retail business in a highly competitive market weighed on its bottomline.
This countered the overall steady demand in the company's cables and wires segment, aided by government infrastructure investments and rising real estate demand.
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The segment accounted for about 83% of its total revenue.
Larger peer Havells India missed second-quarter estimates on lower demand for its air conditioners and fans on back of the monsoon season and higher expenses.
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