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Informist, Thursday, Jul. 17, 2025

By Akash Mandal

MUMBAI – Polycab India Ltd.'s bottom line for the June quarter grew at the fastest pace in seven quarters and beat the analysts' estimates. Its top line grew at the fastest pace in three quarters on the back of a strong growth in its core business of wires and cables. The company's sales growth outpaced increase in expenses during the quarter. 

The company reported a consolidated net profit of INR 5.92 billion in the June quarter, up nearly 50% on year and higher than the analysts' estimate of INR 5.11 billion. Sequentially, its bottom line fell 19% from INR 7.27 billion. The company's consolidated revenue grew 26% on year but fell 15% sequentially to INR 59.06 billion during the quarter. 

Total expenses of the company rose 23% on year but fell nearly 15% sequentially to INR 51.85 billion in the reporting quarter. The biggest expense was raw material costs, which rose 22% on year but fell 17% quarter-on-quarter to INR 43.19 billion. Its other expenses rose 25% on year to INR 3.98 billion. 

Revenue from the company's wires and cables segment, by far the biggest contributor to its overall sales, rose to INR 52.29 billion in the reporting quarter, up nearly 31% on year. Revenue from the company's fast-moving electrical goods segment rose 18% on year to INR 4.54 billion but sales from its engineering, procurement, and construction vertical fell 19% to INR 3.47 billion.

The earnings before interest and tax margin of the company's wires and cables segment rose 190 basis points on year to 14.7%. The EBIT margin for its fast moving electrical goods segment turned positive to 2.1% from a negative margin of 0.7% a year ago. However, the margin for its engineering, procurement, and construction business fell by 140 basis points to 7.7%. 

At an overall level, the company reported a consolidated EBITDA of INR 8.58 billion in the June quarter, up 47% on year. The EBITDA margin expanded by 210 basis points on year to 14.5%, which was supported by pricing revisions, improved operational efficiency, and a favourable business mix. As of the end of the quarter, the company said it has a net cash of INR 31 billion on its books, up from INR 16.4 billion a year ago.

The company said its wires and cables segment saw a sustained demand across core sectors and was driven by higher government expenditure, better project execution, and rising commodity prices. However, within the segment, the company said that cables continued to outperform the wires segment in the domestic market. Its international wires and cables business grew 24% on year during the quarter due to a low base, and the segment accounted for 5.2% of the company's consolidated top line. 

The fans segment in the company's fast-moving electrical goods business was muted during the quarter due to a shorter summer, the company said. However, categories such as lights, switchgears, switches, and conduit pipes and fittings saw robust growth due to steady demand from the real estate sector. Overall, the electrical goods segment reported a second consecutive profitable quarter due to a shift towards premium products. The company also said solar product sales more than doubled on year and was the largest category among the company's fast-moving electrical goods segment.  End

Edited by Akul Nishant Akhoury

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