Polycab India Ltd: Q2FY25 Financial Results
Polycab India Ltd announced strong Q2FY25 results with revenue growth of 30% YoY. The company achieved its highest ever second quarterly revenue, driven by robust performance across business segments.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
H1FY25 Financial Performance
1
Revenue
H1FY25 revenue reached Rs 101,965 million, up 26% YoY. Strong demand drove growth across segments.
2
EBITDA
H1FY25 EBITDA stood at Rs 12,149 million, a 5% YoY increase. Margin pressure impacted growth.
3
PAT
H1FY25 PAT grew 2% YoY to Rs 8,468 million. Profitability faced challenges due to competitive pressures.
Q2FY25 Financial Highlights
Wires and Cables (W&C) Business Performance
1
Revenue Growth
W&C business revenue grew 23% YoY to Rs 46,067 million. Domestic institutional business outpaced distribution.
2
International Expansion
International business grew 36% QoQ, contributing 6.1% to overall top-line. Export markets show promise.
3
Margin Pressure
EBIT margins at 12.3%, impacted by competitive intensity. Lower contribution from high-margin domestic distribution affected profitability.
FMEG Business Segment Analysis
Growth Drivers
FMEG business grew 18% YoY. Channel expansion and product improvements fueled growth. Influencer management program boosted sales.
Product Performance
Fan segment performed well, with strong online sales. Switchgear segment benefited from real estate demand. Lighting segment faced pricing pressure.
Margin Impact
EBIT margins declined due to higher A&P spends. Increased employee expenditures also affected profitability in this segment.
Other Businesses and EPC Segment
Other businesses, primarily EPC, grew 241% YoY to Rs 5,488 million. Robust execution of EPC order book drove growth. EPC segment expected to contribute mid-to-high single digits to consolidated revenue.
Financial Position and Outlook
Net cash position improved to Rs 24.3 billion as of September 30, 2024. CRISIL upgraded long-term bank facilities rating to "CRISIL AAA/Stable". Management expects continued demand momentum supported by government spending and private investments.
Strong Cash Position
Improved liquidity provides financial flexibility for future growth initiatives.
Credit Rating Upgrade
CRISIL AAA rating reflects strong financial performance and market leadership.
Positive Outlook
Robust demand expected from government and private sector spending.
Strategic Focus and Future Prospects
Polycab India focuses on operational excellence to capitalize on emerging opportunities. The company aims to leverage its market leadership position for steady growth. Continued investment in product innovation and channel expansion expected to drive future performance.