Polycab India Q4 Results Review - Impressive Cables, Wires Performance Continues: Dolat Capital

Cables and wires segment revenue increased in Q4 led by high single digit volume growth, outperforming Havells, KEI Industries.

<div class="paragraphs"><p>Electrical cables and wires arranged for photograph. (Source: freepik)</p></div>
Electrical cables and wires arranged for photograph. (Source: freepik)

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Dolat Capital Report

Polycab India Ltd.’s Q4 FY23 revenue was inline while Ebitda and profit after tax beat our estimates. Cables and wires segment revenue increased 15.2% in Q4 led by high single digit volume growth, outperforming Havells India Ltd. cables and wires (+5.4%) and KEI Industries Ltd. (+9%).

Cables and wires segment delivered 290 basis points Ebitda margin expansion to 14.5% in Q4, was a positive surprise, driven by strong momentum in international business (+125% YoY) and higher margin orders in the cable business.

Polycab India's management has reiterated its target of Rs 200 billion top-line by FY26E and annual margin guidance of 11-13% in cables and wires segment going ahead (13.1% in FY23).

Judicious price increases, favorable product mix and improvement in fast moving electrical goods profitability FY24E onwards should boost overall margin performance.

Click on the attachment to read the full report:

Dolat Capital Polycab India Q4FY23 Result Update.pdf
Polycab India Q4 Review - Benefits Of Distribution Restructuring To Be Visible In FY24-FY25: ICICI Securities


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