Polycab India Limited has announced its consolidated results for the fourth quarter and full year ended March 31 2020.
May 30, 2020
Net profit of Polycab India rose 52.40% to Rs 213.94 crore in the quarter ended March 2020 as against Rs 140.38 crore during the previous quarter ended March 2019.
Commenting on the financial performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We achieved healthy underlying performance with improved profitability in FY20. Polycab maintained its dominant position in Wires and Cables and continues to expand its presence in the ‘Electricals’ ecosystem. The year was marked with strong business momentum despite significant headwinds however the outbreak of COVID-19 pandemic and its severe economic implications partly tapered growth. We are undertaking all necessary measures to ensure safety and well-being of our employees, partners and to support, dealer, distributors, customers, and communities across India. Our financial stability, in-house backward integration, wide distribution channels and quality human capital, positions us well to deal with any challenge. Parallelly, we are also refining our strategy to capture emerging trends and succeed in the transforming world. Government reforms and initiatives will certainly help the broader economy and people. Polycab being a true example of made in India brand will continue to contribute to nations growth and governments vision to make India a self-reliant economy.”
Highlights on consolidated performance for the full year ended March 31 2020
Revenue grew 11% y-o-y to Rs. 88,300 mn driven by healthy underlying performance across segments partly tapered by COVID-19 impact.
- The wires and cables business grew 9% to Rs. 75,192 mn in FY20 from Rs. 69,295 mn in FY19 driven by exports and new product categories
- The FMEG business grew 30% to Rs. 8,356 mn in FY20 from Rs. 6,433 mn in FY2019. Fans and lighting business witnessed healthy traction
PBT grew by 34% to Rs. 10,100 mn in FY20 from Rs. 7,561 mn in FY19 on the back of lower finance cost and higher other income vs last year.
PAT grew by 53% to Rs. 7,656 mn in FY20 from Rs. 5,003 mn in FY19 led by lower income tax rates. PAT margin at 8.7% in FY20, was up by c.241bps y-o-y vs FY19 reflecting strong profitability.
ROCE and ROE stood at 26.4% and 19.9% for FY20, respectively. Return ratios seem optically lower due higher equity base from IPO proceeds received in FY20.
Highlights on consolidated performance for the quarter ended March 31 2020
Revenue declined by 14% y-o-y to Rs. 21,294 mn due to severe impact of COVID-19 during the quarter.
- The wires and cables business declined 11% to Rs. 18,434 mn in Q4FY20 from Rs. 20,632 mn in Q4FY19. Growth in exports and new product categories was offset by impact from restriction of movement during prime sales period
- The FMEG business declined 6% to Rs. 1,833 mn in Q4FY20 from Rs. 1,953 mn in Q4FY2019
PAT grew by 53% to Rs. 2,151 mn in Q4FY20 from Rs. 1,402 mn in Q4FY19. PAT margin at 10.1% in Q4FY20, was 441bps higher y-o-y led by better operating profitability and lower income tax.