Driven by strong demand environment, Polycab India Ltd registered impressive growth in its wire & cable business during the second quarter (Q2: July to September) of FY25.
In a media release, Polycab said that its wire & cable business recorded year-on-year revenue growth of 23 per cent to Rs.46,067 million, driven by favorable movement in commodity prices and continued strong demand environment.
Domestically, the institutional business outpaced the distribution business, while growth in wires outperformed that in cables. The international business too posted remarkable results, growing by 36 per cent quarter-on-quarter and contributing 6.1 per cent to the company’s overall top-line.
EBIT margins for the quarter were at 12.3 per cent, adversely impacted by higher competitive intensity and lower contribution from the higher margin domestic distribution business, the release said.
Demand momentum to continue
According to Inder T. Jaisinghani, Chairman & Managing Director, Polycab India Ltd, “We have concluded the first half of the financial year on a strong note, delivering our highest-ever second quarter and half yearly revenues and profit, driven by robust market demand. Looking ahead, we expect the demand momentum to continue, supported by increased government spending, continued investment by private players and robust real estate offtake. With a strong focus on operational excellence, we stand well positioned to capitalize on the emerging opportunities and drive steady growth.”
EPC business
Polycab’s other businesses, largely comprising of the EPC business, registered a strong growth of 241 per cent year-on-year during Q2FY25 to Rs.5,488 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, Polycab India said.
Also read: Polycab sees 27 per cent growth in wire & cable business
