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What is the story about?
Polycab (India) Ltd. delivered a strong beat across key metrics during the March quarter on Wednesday, May 6, with revenue, EBITDA, and net profit all coming in ahead of Street estimates.
Revenue for the quarter came in at ₹8,864.4 crores, up 27% year-on-year from ₹6,986 crores and comfortably ahead of the CNBC-TV18 poll estimate of ₹8,233 crores.
Earnings Before Interest, Tax, Depreciation and Amortisation rose 13.3% to ₹1,161 crores from ₹1,025 crores in Q4 FY25, beating the poll estimate of ₹1,065 crores. EBITDA margin stood at 13.1%, down 160 basis points from last year's figure of 14.7%, but marginally higher than the CNBC-TV18 poll estimate of 12.9%.
Margins were compressed due to an unfavourable product mix driven by higher institutional sales and operating deleverage. Net profit of ₹772.7 crore was also higher than the poll of ₹691 crore.
The Wires & Cables segment, Polycab's core business, posted 30% revenue growth in Q4, with domestic W&C growing at a similar quantum.
Execution under Project Spring, which is the company's multi-year strategic initiative, enabled Polycab to gain approximately 3% – 4% domestic market share during the financial year.
International business grew by 18% from last year, and contributed 4.4% to the consolidated topline.
The Fast-Moving Electrical Goods (FMEG) segment grew by 47% from the same quarter last year, led by the Solar Products, which nearly doubled from last year and has now become the largest product category within the segment. Under Project Spring, the management is targeting margins between 8% to 10% for this business by financial year 2030.
However, the EPC segment saw a revenue decline of 15% from last year due to project execution and timing.
The company's board has also approved a final dividend of ₹47 per share, taking the dividend payout ratio to 27.2% from 26.3% last year and moving closer to their target of exceeding 30% by financial year 2030.
Shares of Polycab India are trading 0.9% higher after the earnings announcement at ₹8,410. The stock has risen 20% in the last one month.
Revenue for the quarter came in at ₹8,864.4 crores, up 27% year-on-year from ₹6,986 crores and comfortably ahead of the CNBC-TV18 poll estimate of ₹8,233 crores.
Earnings Before Interest, Tax, Depreciation and Amortisation rose 13.3% to ₹1,161 crores from ₹1,025 crores in Q4 FY25, beating the poll estimate of ₹1,065 crores. EBITDA margin stood at 13.1%, down 160 basis points from last year's figure of 14.7%, but marginally higher than the CNBC-TV18 poll estimate of 12.9%.
Margins were compressed due to an unfavourable product mix driven by higher institutional sales and operating deleverage. Net profit of ₹772.7 crore was also higher than the poll of ₹691 crore.
How Did Polycab's Segments Fare
The Wires & Cables segment, Polycab's core business, posted 30% revenue growth in Q4, with domestic W&C growing at a similar quantum.
Execution under Project Spring, which is the company's multi-year strategic initiative, enabled Polycab to gain approximately 3% – 4% domestic market share during the financial year.
International business grew by 18% from last year, and contributed 4.4% to the consolidated topline.
The Fast-Moving Electrical Goods (FMEG) segment grew by 47% from the same quarter last year, led by the Solar Products, which nearly doubled from last year and has now become the largest product category within the segment. Under Project Spring, the management is targeting margins between 8% to 10% for this business by financial year 2030.
However, the EPC segment saw a revenue decline of 15% from last year due to project execution and timing.
Dividend & Stock Reaction
The company's board has also approved a final dividend of ₹47 per share, taking the dividend payout ratio to 27.2% from 26.3% last year and moving closer to their target of exceeding 30% by financial year 2030.
Shares of Polycab India are trading 0.9% higher after the earnings announcement at ₹8,410. The stock has risen 20% in the last one month.
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