Polycab India Q3 Results: Stock falls after higher expenses hit margins despite topline growth

Shares of Polycab India Ltd., fell Friday, January 16, in response to its December quarter results, which were higher / lower / in-line with the street expectations.

Revenue for the quarter increased by 46.1% from the same quarter last year to ₹7.636.1 crore. The CNBC-TV18 poll had pegged the figure at ₹6,761 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹966.7 crore, 34.2% higher than the last year's figure of ₹720 crore, and marginally lower with the street expectation of ₹977 crore.

EBITDA margin for the quarter narrowed by over 100 basis points to 12.66% from 13.8% last year and missed the CNBC-TV18 poll estimate of ₹14.4%.

Polycab's advertising and sales promotion expenses more than doubled from the same quarter last year to ₹91 crore from ₹37.3 crore. Finance costs also increased to nearly ₹69 crore at the end of the December quarter from ₹50 crore in the year-ago period.

Polycab's core wires and cables segment revenue increased to ₹6,852 crore from ₹4,450 crore during the same quarter last year. Revenue for the FMEG segment touched the ₹500 crore mark from ₹423.1 crore last year. The EPC segment revenue stood at ₹407 crore from ₹392 crore in the year-ago period.

Shares of Polycab India are trading 2.8% lower after the results announcement at ₹7,117.

To be updated with more details.