Polycab

Polycab Q3FY23 – Performance YoY Rev at 3715Cr vs 3372Cr⬆️11% QoQ Rev at 3715Cr Vs 3332Cr⬆️11.41% 9months ended Rev: 9784 Cr Vs. 8233⬆️18.9% YoY PAT at 361Cr vs 316Cr⬆️14.2% QoQ PAT at 361Cr Vs 270Cr⬆️33.7% 9months ended PAT: 853 Cr Vs. 592⬆️44.1% Q3EPS at 23.8 Rs vs 21 Rs Vs. 17.8 9months ended EPS: 56.3 Vs. 39.1 ✓ EBITDA Q3FY23 INR 503 Cr up by 39% in YoY ✓ EBITDA 9MFY23 INR 1,239 up by 58% in YoY ✓ Q3FY23EBITDA margin continued to improve, increasing by 73 bps QoQ to 13.5% on the back of better operating leverage. 9MFY23 Margins improved by 312 bps to 12.7%. ✓ PAT Margins 9.7% Vs. 10.1% in YoY therefore declined by 40 basis points ✓ ROE: 18%, ROCE: 22%, PE: 37, Forward PE: 30 (Good) ✓ Borrowing cost is negligible. Highlights ✓ Wires and Cables business revenue grew 11% on YoY basis to ₹ 3,278 Cr, which was largely driven by domestic distribution business. Positive for merger of HDC and LDC verticals last year ✓ FMEG business was almost flat YoY and grew 12% QoQ despite challenging business environment. ✓ As of 31 st December 2022, net cash position improved to ₹ 18.7 bn against ₹ 6.7 bn net cash during the same period last year ✓ Exports revenue exports grew by 32% YoY. Overall, exports business contributed to 8.6% of consolidated revenue in 9MFY23 ✓ Company has guided for Rs 20,000 Cr revenue by 2026 from 12,204 Cr in FY22 through its 'Project Leap' execution strategy which implies a 13% CAGR revenue guidance *View* Excellent quarterly performance and continuously outperform. Polycab India Limited (PIL) is India’s largest manufacturer of Wires and Cables and one of the fastest growing FMEG companies, customers via a strong distribution network of 4,600+ authorized dealers and 205,000+ retail outlets. PIL’s business operations span across India through 25 manufacturing facilities, 15+ offices and 25+ warehouses. Based on the performance on QoQ and YoY investor should continue with the company. Polycab is now expanding their strong note on Home appliances as well. Management says: We continued our strong quarterly performance, registering highest ever 3rd quarterly revenues in Q3FY23. Moreover, we achieved the highest ever quarterly PAT as well as the highest ever nine-months revenues and PAT in the history of the Company. Our excellent performance demonstrates the strength of our executional capabilities effectively leveraging our strong market position, robust distribution network and favourable market conditions 6