Polycab India reported strong growth in the first quarter of FY24 largely attributed to the healthy performance in wires and cables segment. Revenues jumped 42 percent year on year to Rs 3,889 crore, compared with CNBC-TV18 poll of Rs 3,198 crore. The earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 76 percent year on year to Rs 549 crore versus the CNBC-TV18 poll of 393 crore.

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EBITDA margins improved 270 bps year on year to 14.1 percent, while the Street expected 12.6 percent. The net profits are 81 percent higher at Rs 403 crore, against the CNBC-TV18 poll of Rs 270 crore.

The wires and cables segment revenues are 47 percent higher year on year at Rs 3,534 crore, where volume growth stood at 50-60 percent. On the contrary, fast moving electrical goods (FMEG) segment was soft with marginal growth to Rs 315 crore.

CNBC-TV18 interacted with Inder T Jaisinghani CMD & MD and Gandharv Tongia ED & CFO on July 19 for recent developments in the business. The management said this has been the best ever first quarter for the company. With the ongoing progress, the company is optimistic to achieve Rs 20,000 crore of revenues ahead of its FY26 target. In FY23, the company clocked Rs 14,108 crore revenues.

Cables and wires segment, which contributes bulk of the company's revenues, is targeting 12 to 14 percent of EBITDA margin, while the FMEG segment margin is expected at 10 percent by FY26.

The export contribution is expected to move up to 11 percent and can further increase to mid-teens in the medium term. Polycab India is setting up a facility for export unit, with capex guidance at Rs 500 to 600 crore.

Polycab India is trading 3.7 percent higher on July 19 and is 10 percent higher this week.

First Published:Jul 19, 2023 10:49 AM IST