BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
Polycab India Ltd.’s consolidated topline stood at Rs 27.4 billion (Q1 FY20‐23 compound annual growth rate at 12%), 3%/8% below our/consensus estimates.
We had highlighted in our channel checks that June 2022 has seen aggressive de‐stocking of cables and wires by trade channel due to sharp decline in copper and aluminium prices leading to 8‐9% price cuts.
Polycab's gross margin rose 150 basis points YoY to 25% and Ebitda margin was 40 bps above our estimate at 11.4%, as margin structure improves in percentage terms during declining commodity prices.
Ebitda at Rs 3.1 billion (Q1 FY20‐23 CAGR at 11.6%) and profit after tax at Rs 2.2 billion (Q1 FY20‐23 CAGR at 17.8%) were below consensus by 8%/9%, respectively.
Fast moving electrical goods weakness continued with revenue of Rs 3.1 billion (Q1 FY20‐23 CAGR at 8.7%) and low Ebit margin of 2.1%, down 70bps QoQ.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR