Polycab Q4 Results: 25% Revenue Surge, FMEG Turns Profitable for the First Time

Market Performance

Polycab Ltd. shares gained momentum post its Q4 FY24 results, climbing 0.8% to trade at ₹5,840. The stock touched the day's high following a strong quarterly performance that surpassed analyst expectations.

Strong Q4 Financial Performance

Polycab's January–March 2024 quarter results reflected robust business momentum across segments. Here's a breakdown of the company's key financial metrics:

Revenue

• Polycab posted a 25% YoY increase in revenue, reaching ₹6,985.7 crore.
• This significantly exceeded market expectations of ₹6,621 crore.

EBITDA

• EBITDA stood at ₹1,025.7 crore, marking a 34.7% YoY growth.
• The reported EBITDA beat consensus estimates of ₹958 crore.

EBITDA Margins

• Margins improved by 110 basis points, reaching 14.7% this quarter.
• This was slightly higher than the anticipated 14.5%.

Net Profit

• Net profit rose by 35% YoY to ₹727 crore, bolstered by strong revenue growth and improved profitability.

Business Segment Performance

Wires & Cables

• Segment revenue rose 22% YoY, supported by:
  • Government infrastructure spending
  • Strong real estate demand
  • Commodity price trends
• Cable sales outperformed wire sales during the quarter.
• The international business experienced a temporary dip due to a large order shifting to the next quarter.

FMEG (Fast-Moving Electrical Goods)

• The FMEG division reported a 33% YoY revenue growth.
• For the first time in ten quarters, the segment turned profitable.
• Key drivers included:
  • Growth in switches, conduit pipes & fittings, and switchgears
  • Strategic investments are finally paying off

EPC (Engineering, Procurement & Construction)

• EPC business showed a robust 47% YoY growth, led by accelerated execution of the RDSS order book.

Company Details

• Annual Revenue: Polycab crossed the ₹22,000 crore mark for the fiscal year.
• Dividend Update: The board declared a record dividend of ₹35 per share.
  • Dividend payout ratio increased to 26.3% from last year's 25.5%.
  • Aligns with the company's "Project Spring" goal of 30 %+ dividend payout by FY30.

Summary

Polycab's Q4 results underscore its strong market positioning and diversified growth strategy.

With a 25% surge in revenue, a 35% jump in net profit, and the FMEG division turning profitable, the company closed FY24 on a high note.

Polycab continues to lead with operational excellence and strategic clarity despite growing competition in the cables and wires sector.