Polycab Share Price Surge 3.3%; Secures Key ₹4,099 Crore Contract with BSNL for BharatNet

On November 6, 2024, Polycab share price opened at ₹6,700.00, up from its previous close of ₹6,632.55. At 12:09 PM, the share price of Polycab India was trading at ₹6,851.75, up by 3.30%. Notably, the stock touched its 52-week high at ₹7,605.00 recently on October 15, 2024.

Emerged as the Lowest Bidder 

On Wednesday, Polycab India informed the stock exchanges that the company has emerged as the Lowest Bidder (L1) for a significant contract with Bharat Sanchar Nigam Limited (BSNL). 

The contract is for the development, upgradation, operation, and maintenance of the middle mile network of BharatNet under the Design Build Operate and Maintain (DBOM) model, specifically for Package 4, which includes the states of Karnataka, Goa, and Puducherry.

The total value of the contract is approximately ₹4,099.70 crore, a substantial order that highlights Polycab India’s growing footprint in the telecommunications infrastructure sector. 

The contract will be executed in two phases: the construction phase, which is expected to be completed within three years, and a maintenance contract lasting for 10 years. For the first five years of the maintenance phase, Polycab will be compensated at 5.5% per annum of the capital expenditure (capex), which will increase to 6.5% per annum for the subsequent 5 years.

This order is expected to contribute significantly to Polycab’s revenue and further establish the company’s presence in the telecom sector.

Q2 and H1 FY 2025 Financial Highlights

In Q2 FY25, the company saw a notable 30% YoY increase in revenue, totaling ₹54,984 million. EBITDA for the quarter was ₹6,316 million, up by 4% YoY, while PAT also grew 4% YoY, reaching ₹4,452 million. 

For the first half of FY25, the company reported strong financial performance with a 26% year-on-year increase in revenue, reaching ₹1,01,965 million. EBITDA for H1 FY25 stood at ₹12,149 million, marking a 5% YoY growth, while PAT grew 2% YoY, reaching ₹8,468 million.

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