Polycab India Q4 result: Profit jumps 28.5% to Rs 546 cr on healthy demand
Polycab India reported a 28.5 per cent jump in its fourth-quarter profit on Friday, driven by strong demand for its wires and cables, its largest segment.
Consolidated net profit rose to Rs 546 crore ($65.4 million) for the three months ended March 31 from Rs 425 crore a year earlier.
Cables and wires companies have benefited from a demand surge from the real estate and infrastructure sectors, further aided by the government as it tries to boost the economy.
Revenue rose by 29 per cent to Rs 5,592 crore, driven primarily by growth in its core wires and cables segment, which posted a 19.3 per cent rise.
The segment accounts for about 88 per cent of the company’s product mix.
Its fast-moving electric goods (FMEG) unit that sells electrical appliances rose 17.3 per cent year-on-year, benefiting from a seasonally strong demand quarter.
Larger rival Havells India also posted a higher quarterly profit last week on strong demand for room air conditioners and fans as consumers prepared for warmer weather.
Polycab India’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 26 per cent year-on-year on improved operating efficiency and reduced advertising and promotion spending.
Shares rose as much as 3.4 per cent to a record high of Rs 5,998.80 after the results.
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First Published: May 10 2024 | 1:49 PM IST