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Polycab India entered the elite club of top-100 most valued companies in terms of market captialisation as the share price hit a new high of Rs 4,324.85, up 4.8 per cent on the BSE in Wednesday’s in intra-day trade.
With a m-cap of Rs 64,422 crore, Polycab India stood at 91st position in overall m-cap ranking at 11:17 AM. The company surpassed two-wheeler makers, TVS Motor Company, Hero MotoCorp and others like Tube Investments of India, IDBI Bank, Zydus Lifesciences, Info Edge India, Trent and Canara Bank, the BSE data shows.
Shares of Polycab India were quoting higher for the eight straight trading day, surging 23 per cent during the period. Thus far in the financial year 2023-24, it has zoomed 50 per cent, as compared to 13.6 per cent rise in the S&P BSE Sensex.
In past two days, the stock of the cables and wire maker has rallied 11 per cent after the company reported a strong 81.7 per cent year-on-year (YoY) rise in profit at Rs 399.27 crore for the June 2023 quarter (Q1FY24), on healthy operational performance. The company had posted profit of Rs 219.76 crore in the corresponding quarter of previous fiscal.
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Revenue grew 42 per cent YoY to Rs 3,889 crore in spite of lower commodity prices on the back of strong volume growth in wires and cables business. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by ~280 bps YoY to 14.1 per cent driven by judicious price revisions, better operating leverage and favourable business mix.
The company’s wires and cables business revenue grew 46 per cent YoY basis to Rs 3,487 crore on the back of strong volume growth both domestically and internationally. Cables growth continued to outperform wires growth. Segmental margins improved by ~330 bps YoY led by judicious price revisions, better operating leverage and strong growth in international business. Fast moving electric goods (FMEG) business was muted during the quarter as weak consumer sentiment weighed down on sales, Polycab India said.
The management said the government’s strategic focus on infrastructure development and structural reforms, improving private capex and continued momentum in real estate has further fuelled the company’s success, yielding favourable results.
The improved growth momentum is also a result of a combination of strategic initiatives implemented through Project LEAP, along with unwavering dedication to customer-centricity, a diverse array of high quality products, and a robust distribution network, it added.
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