Polycab India – Wire & Cable Manufacturing Company Reports Q1FY24 Results

Polycab India Ltd is the largest manufacturer and supplier of cables and wires in India. The company has also gained prominence in the fast-moving electrical goods (FMEG) industry and has a well-established presence in exports. The foundation of Polycab dates back to 1964 when it started as a small electrical store called Sind Electric Stores. Through the years, Polycab has expanded its offerings, sectors, and reach, becoming a market leader in the domestic wires and cables segment with a significant market share. 

The company’s success is attributed to its strong business fundamentals, including multiple manufacturing locations, backward integration, a wide product portfolio, a reputable brand, an extensive distribution network, and experienced management. Polycab has further demonstrated its commitment to growth by venturing into the consumer-facing electricals business. 

Today, Polycab India Ltd announced their Q1FY24 results in which sales of the company grew by 42.13% and stood at Rs 3,953.38 crore as against 2,780.90 crore in Q1FY23 while operating profit grew by 72% and stood at Rs 612.56 crore as compared to 355.44 crore in Q1FY23. Similarly, the net profit of the company grew by 79% and stood at Rs 402.81 crore as against Rs 223.83 crore in Q1FY23. Furthermore, the company has been able to grow its sales by 16% (CAGR) for the past 5 years and net profit has grown by 28% (CAGR) for the same period. 

The company has delivered stellar returns of 91% over the past year and exceptional returns of 403% over the past 3 years. Additionally, the company has a ROCE of 27.1% and a ROE of 20%. 

On Tuesday, shares of Polycab India surged by more than 5% and traded at its new 52-week high of Rs 4,148. Additionally, the scrip had a spurt in volume by more than 5.30 times. 

Investors should keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.