Polycab India Q2 Results | Net profit up 4% to ₹445 crore; misses estimates
In the corresponding quarter of the previous fiscal, Polycab India posted a net profit of ₹429 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹452 crore for the quarter under review.
The company’s revenue from operations jumped 30.4% to ₹5,498.4 crore as against ₹4,218 crore in the corresponding period of the preceding fiscal, registering its highest-ever second quarterly revenue, on the back of robust growth across business segments. The CNBC-TV18 poll had predicted revenue of ₹5,062 crore for the quarter under review.
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At the operating level, EBITDA was up 3.7% to ₹631.5 crore in the second quarter of this fiscal over ₹609 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹660 crore for the quarter under review.
EBITDA margin stood at 11.5% in the reporting quarter as compared to 14.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 13% for the quarter under review.
Wire & cable business revenue grew by 23% year-on-year to ₹4,606.7 crore, driven by favourable movement in commodity prices and a continued strong demand environment. Domestically, the institutional business outpaced the distribution business, while growth in wires outperformed that in cables.
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The international business too posted remarkable results, growing by 36% quarter-on-quarter and contributing 6.1% to our overall top-line. EBIT margins for the quarter were at 12.3%, adversely impacted by higher competitive intensity and lower contribution from the higher margin domestic distribution business.
Other businesses, largely comprising the EPC business, registered a strong growth of 241% year-on-year during the quarter to ₹548.8 crore, on the back of robust execution of the EPC order book. Contribution from this business is expected to be in the mid-to-high single digits to the Company’s consolidated revenue going forward.
As of September 30, 2024, the net cash position stood at ₹2,430 crore, against ₹1,530 crore in the same quarter previous year. The results came after the close of the market hours. Shares of Polycab India Ltd ended at ₹7,102.20, down by ₹80.20, or 1.12% on the BSE.
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