Polycab India has reported a 28 per cent growth in its wires & cables business during the second quarter (Q2: July to September) of FY24.
Business revenue in the wires & cables business during Q2 of FY24 grew 28 per cent year-on-year, on the back of strong volume growth, Polycab India said in a release.
Continued strong demand supported by government capex and robust real-estate off-take enabled sustenance of growth momentum. Domestically, both distribution driven business and institutional business exhibited strong performance. Geographically, growth was broad based, with highest growth coming from North region.
Revenues from international business contributed 9.3 per cent of the consolidated revenue for Q1 of FY24 in the wires & cables business. As of September 30, 2023, Polycab India had a global footprint in 76 countries, with respect to wires & cables.
In the first half (H1: April to September), the wires and cables business revenue grew 36 per cent year-on-year to Rs.7,227 crore from Rs.5,314 crore in H1 of FY23 with healthy growth across both distribution and institutional businesses.
The contribution of the wires & cables business to Polycab India’s total revenue in H1 of FY24 stood at around 88.7 per cent, followed by the FMEG (fast-moving electrical goods) with 7.9 per cent. The remaining 3.5 per cent came largely from the company’s EPC business.
Strong business performance
Commenting on the performance, Inder T. Jaisinghani, Chairman & Managing Director, Polycab India Ltd, said: “We continued our strong business performance in Q2, enabling the half yearly revenue and profitability to be the highest ever in the company’s history.
During the quarter, we unveiled our new brand identity, symbolizing our commitment to innovation, technology, safety, and sustainability with a vision of “Connecting all to a brighter future.” We’ve also updated our brand tagline from the existing positioning of Connection Zindagi Ka to Ideas. Connected. which reflects our vision for a future where innovative products simplify lives, and it all begins with a thoughtful idea. The company is on an exciting journey towards a more promising future, and I believe the brand refresh will act as a catalyst in accelerating this favourable advancement”.
Also read: Polycab India: Wires & Cables Business Grows 46 Pc In FY24
Market Share
In the wires & cables industry, Polycab India had an estimated market share of 22-24 per cent in FY23, with respect to the organized market. In terms of the overall market (which includes the unorganized sector), the company’s share was 15-16 per cent. The Indian wire & cable industry has an estimated size of Rs.68,000 crore to Rs.73,000 crore, accounting for 40-45 per cent of the overall electrical equipment industry.
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