Polycab India wired well

Polycab India is a bright star in this otherwise lacklustre market today morning. The stock jumped up 7.5% to hit an intraday high at Rs.949 with 7.5 times rise in volumes. Its 20% UC for the day is at Rs.1060.10.

The market is enthused with its performance for Q2FY21. On a 6% (YoY) decline in consolidated revenue at Rs.2114 crore, the company posted a 14% rise in net profit at Rs.222 crore. The company said that profitability in Q2 improved sharply despite rising input costs on account of calibrated pricing actions, premiumisation and working capital interventions. What truly helped is the 175% jump in other income at Rs.33 crore v/s 12 crore.

Its Wires and cables business declined 7% YoY to Rs.1741 crore but the business saw improving momentum with resumption of economic activities. B2C wires and exports sustained the strong traction. Its FMEG business grew 25% YoY to Rs.244 crore and this segments growth was resilient across most categories and regions.

EBITDA rose 16% at Rs.312 crore and margins improved 272 bps to 14.76%.

As of 30 September 2020, net cash position increased to Rs 6,276 mn. ROCE stood at 26.6% in Q2FY21.