Polycab India Q1 Results Highlights: Net Profit & Revenue Miss Estimates

Synopsis 

Polycab India Ltd. reported marginal decline in consolidated net profit to ₹ 401.62 crore for June 2024 quarter, missing estimates. Revenue rose 21% year-on-year to ₹ 4,698 crore, with margins narrowing by 170 basis points.

Quarter Results Highlights 

Polycab India's Q1 FY25 net profit was ₹ 401.6 crore, below CNBC-TV18 poll estimate of ₹ 458 crore. 

Company's consolidated revenue for quarter increased by 21% year-on-year to ₹ 4,698 crore, missing expected ₹ 4,829 crore. 

Core Wire & Cables business saw 5% decline in EBIT, with margins dropping to 12.6% from 15% last year. 

EBITDA increased by 6.4% to ₹ 583.3 crore, which was lower than estimated ₹ 651 crore, with EBITDA margin narrowing to 12.4% from 14.1%.

Management Commentary 

Polycab India addressed recent Income Tax raids, stating no written communication had been received regarding outcome, leaving financial impact uncertain. 

Despite this, company's stock recovered from earlier losses & was trading 0.2% higher at ₹ 6,641, reflecting 22% rise in 2024.

Industry Impact 

Wires & cables industry faced challenges with rising expenses impacting profitability. Polycab India's performance indicates broader sector pressures, despite revenue growth. industry is closely monitoring regulatory actions & market conditions, which could further influence stock share prices & financial outcomes.

Company Description 

Polycab India Ltd. is leading manufacturer of wires & cables in India. company also operates in fast-moving electrical goods (FMEG) sector. In Q1 FY25, wires & cables segment generated ₹ 3,942.12 crore, up from ₹ 3,553.77 crore, while FMEG segment saw revenue increase to ₹ 385.49 crore from ₹ 314.54 crore. Despite recent challenges, Polycab India continues to be significant player in industry, with its stock share price reflecting resilience in market.

To Summarize

Polycab India Ltd. reported marginal decline in net profit to ₹ 401.62 crore for Q1 FY24, missing estimates. Revenue rose 21% year-on-year to ₹ 4,698 crore, but margins narrowed by 170 basis points. Despite recent Income Tax raids, company's stock recovered & is up 22% in 2024. Polycab's core wires & cables business saw 5% EBIT decline, while FMEG segment's revenue increased.