Polycab India, the wires and cables manufacturer reported strong financials for fourth quarter of 2022-23 led by the wires and cables segment. Revenue from operations jumped 9 percent to Rs 4,324 crore. Operating profitability is higher by 28 percent to Rs 610 crore, much better than the CNBC-TV18 poll was at Rs 547 crore. The operating margins improved 210 bps to 14.1 percent, while the estimates were at 12.6 percent. Net profits is higher by 32 percent to Rs 428 crore, compared with the CNBC-TV18 poll of Rs 386 crore.

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In terms of segmental performance, wires and cables segment revenues stood 15 percent higher during the fourth quarter. The fast moving consumer electrical goods segment witnessed 20 percent decline in revenue during the same period.

For the full year FY23, revenue grew 16 percent to Rs 14,108 crore, however, the growth rate is lower than what the company had guided earlier of 20 percent. The earnings before, interest, tax, depreciation and amortization is higher by 54 percent to Rs 1,664 crore, while operating margins have improved 290 bps to 11.8 percent versus 8.9 percent in FY22. Net profits have jumped 40 percent to Rs 1,282 crore during the year.

The wires and cables segment witnessed a strong growth of 18 percent during the year, while fast moving consumer electrical goods segment performance was flat. The cables and wires segment margins at 13.1 percent has exceeded the management's earlier guidance of 11 to 13 percent and is also higher than 9.8 percent clocked in FY22.

The Board has recommended a dividend @ 200 percent i.e. Rs 20 for FY23. The stock surged 5 percent on the exchanges post declaring its fourth quarter results.