Polycab India Ltd announced a 12 per cent year-on-year growth in its wires & cables business during Q3 (October to December) of FY25.
Demand for cables was healthy, however, downward trend in copper prices and high channel inventory of wires at the beginning of the quarter led to slowdown in the wires business. The international business delivered outstanding performance, posting a remarkable 62 per cent year-on-year YoY growth and contributing 8.3 per cent to the company’s overall top-line revenue. EBIT margins for the quarter expanded by around 120 basis points quarter-on-quarter to 13.5 per cent, driven by the normalization of margins in the wires business and increased contribution from the international business
Other businesses, largely comprising of the EPC business, registered a strong growth of 111 per cent year-on-year during the quarter to Rs.4,573 million, on the back of robust execution of the EPC order book. Contribution from this business is expected to be in mid-to-high single digits to the company’s consolidated revenue going forward, the release said.
Performance in 9MFY25
Wires and cables business revenue grew 15 per cent year-on-yaer to Rs.1,27,967 million in 9MFY25 (April to December) from Rs.1,11,004 million in 9M FY24, with healthy growth across both distribution and institutional businesses. The International business contributed 6.6% of the consolidated revenue.
Other businesses, largely comprising of the EPC business, registered a strong growth of 200 per cent year-on-year to Rs.14,877 million from Rs.4,967 million, on the back of robust execution of the EPC order book
Project Spring
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “We are thrilled to announce that we have concluded 2024 on a robust note, achieving our highest-ever revenues for both the third quarter and the nine-month period. Building on this success, we are excited to embark on our next transformative journey to unlock our growth potential for FY30 and further solidify our leadership in the industry with our new vision — “Project Spring”. Supported by a strong demand outlook, favourable government policies, and our ongoing internal transformation initiatives, I am confident that Polycab is well-positioned to deliver sustained long-term value for all our stakeholders.”
Featured photograph (source: Polycab India Annual Report: 2023-24) is for representation only
