Summary

  • Polycab India manufacture and sells wires and cables and FMEG products such as electric fans, LED lighting and luminaires, switches and switchgear, solar products and conduits & accessories.
  • Polycab India has 25 manufacturing facilities.

Overview

Polycab India (NSE:POLYCAB) is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods ‘FMEG’ under the ‘POLYCAB’ brand. Apart from wires and cables, the company manufacture and sell FMEG products such as electric fans, LED lighting and luminaires, switches and switchgear, solar products and conduits & accessories.1

The company's promoters collectively have more than four decades of experience among them. The company's Company was incorporated as ‘Polycab Wires Private Limited’ on January 10, 1996 at Mumbai as a private limited company.

The company manufacture and sell a diverse range of wires and cables and its key products in the wires and cables segment are power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, flexible/single multi core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signaling cables, specialty cables and green wires. In 2009, the company diversified into the engineering, procurement and construction ‘EPC’ business, which includes the design, engineering, supply, execution and commissioning of power distribution and rural electrification projects. In 2014, the company diversified into the FMEG segment and its key FMEG products are switches and switchgear and conduits & accessories.

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Polycab India has 25 manufacturing facilities, including its two joint ventures with Techno and Trafigura, located across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of Daman and Diu. Three of these 25 manufacturing facilities are for the production of FMEG, including a 50:50 joint venture with Techno, a Gujarat-based manufacturer of LED products. In 2016, the company entered into a 50:50 joint venture with Trafigura, a commodity trading company, to set up a manufacturing facility in Halol, India to produce copper wire rods (the ‘Ryker Plant’). The company strive to deliver customized and innovative products with speed and quality service. The company's production process is designed to ensure quality while delivering the ability to produce complex electrical products on short timeframes to meet its customers’ needs. Most of its manufacturing facilities are accredited with quality management system certificates for compliance with ISO 9001, ISO 14001 and OHSAS 18001 requirements. The company's central quality and test laboratory in Halol is accredited by NABL and its central test laboratory, also located in Halol, for all flexible wires and cables is approved by Underwriters Laboratories ‘UL’. Certain of its products are also certified to be compliant with various national and international quality standards including Bureau of Indian Standards ‘BIS’, British Approvals Service for Cables ‘BASEC’, UL and international electrotechnical commission ‘IEC’.

The company's research and development ‘R&D’ capabilities, emphasis on upgrading the technology used in its production process, customer-centric R&D efforts and its R&D center located in Halol, assist its sales and marketing team in understanding its customers’ requirements. In addition, Polycab India has adopted automation systems in its manufacturing process such as the manufacturing excellence system ‘MES’, which is an automated sensor base system for recording the actual consumption of raw materials in production, as well as enterprise resource planning ‘ERP’ systems. Polycab India has also adopted the Maynard Operation Sequence Technique ‘MOST’ to drive productivity and optimize capacity utilization.

Polycab India has an established supply chain comprising its network of authorized dealers, distributors and retailers. This network supplies its products across India. The company's distribution network in India comprise over 3464 authorized dealers and distributors and 29 warehouses as at March 31, 2018. The company supply its products directly to its authorized dealers and distributors who in turn supply its products to over 100,000 retail outlets in India. The company manage its sales and marketing activities through its corporate office, three regional offices and 20 local offices in various parts of India as at June 30, 2018. In addition, in Fiscal 2018, the company exported its products to over 40 countries.

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Company History

In 1964, Late Thakurdas Jaisinghani had established 'Sind Electric Stores', which dealt in various electrical products including fans, lighting, switches, and wires. Subsequently, the family business was managed from 1968 by Girdhari T. Jaisinghani, Inder T. Jaisinghani, Ajay T. Jaisinghani and Ramesh T. Jaisinghani being sons of Late Thakurdas Jaisinghani. The family founded a partnership firm in the name of 'Thakur Industries' under the Indian Partnership Act, 1932. 2

Subsequently, the partners of 'Thakur Industries' entered into a lease agreement with MIDC in 1975 in respect of a parcel of land at Andheri, Mumbai for the purposes of setting up a factory for manufacturing cables and wires which was in operation until 1984.

In 1983, 'Polycab Industries', a partnership firm founded by Girdhari T. Jaisinghani, Inder T. Jaisinghani, Ajay T. Jaisinghani and Ramesh T. Jaisinghani, was registered as a small scale industrial unit by the Directorate of Industries, Government of Gujarat in respect of a factory located at Halol for manufacturing/processing activity of 'PVC insulated wires and cables, copper and aluminum and bare copper wire.

In 1996, the Company was incorporated as 'Polycab Wires Private Limited' at Mumbai as a private limited company under the Companies Act, 1956.

In 1998, 'Polycab Industries' was subsequently converted into a private limited company as 'Polycab Industries Private Limited' under the Companies Act, 1956. Polycab Industries Private Limited was subsequently amalgamated with the Company in 2011.

In 2000, the Company became a deemed public limited company under Section 43A(1) of the Companies Act, 1956, and the word 'private' was struck off from the name of the Company with effect from June 30, 2000.

Thereafter, the Company was converted into a private limited company under section 43A(2A) of the Companies Act, 1956, and the word 'private' was added in the name of the Company with effect from June 15, 2001.

Later, the Company was converted into a public limited company, the word 'private' was struck off from the name of the Company and consequently, a fresh certificate of incorporation dated August 29, 2018 was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana ("RoC"), recording the change of the Company's name to "Polycab India Limited (Formerly Known as Polycab Wires Limited)".

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Plant and Products

Polycab has 25 manufacturing facilities at seven locations, which are designed to secure a complete supply chain for its product range, starting from raw materials to end-products. 4 out of these 25 facilities manufacture FMEG products. A comprehensive backward integration of operation remains a key priority for the Company and has helped Polycab to build manufacturing facilities for all key raw materials, including aluminium rods, copper rods, and various grades of PVC, rubber, XLPE compounds, GI wire and strip.3

The Company recently acquired the remaining 50% stake in Ryker from Trafigura making Ryker a whollyowned subsidiary of PIL. Ryker was started as a 50:50 JV with the Singapore-headquartered commodity trading company Trafigura in FY 16, to set up a copper rod manufacturing facility in Waghodia, Gujarat. However, post Trafigura’s global strategic decision to exit from value-add manufacturing businesses in India, PIL decided to buyout their stake. The plant started commercial operation in 1QFY20 with an annual capacity of 2,25,000 tonnes.

Production Capacity

ProductLocationAnnual Capacity
Wires & CablesHalol/Daman3.7 million kms
Lighting & LuminairesChhani18.2 million units
SwitchgearsNashik7.2 million units
FansRoorkee3.1 million units
Copper RodsWaghodia2,25,000 tonnes

Polycab operates a pan-India distribution network with 3,500+ authorised dealers and distributors who directly cater to over 1,25,000 retail outlets as on 31 March 2020. The Company has three key segments of business.

Wires and Cables

PIL manufactures and sells a diverse range of wires and cables for both retail and industrial applications, and its products are supplied to various industries like Power, Real Estate, Telecom, Cement, Mass Transportation, Oil and Gas, Mining, Auto, Signalling Communication, Building Electrification, etc. The Company has a diverse portfolio of offerings and is present in almost all segments of wires and cables in the Indian market.

Fast-Moving Electrical Goods (FMEG)

The FMEG business, which was started in FY 14, has made Polycab one of the fastest-growing FMEG brands in India. The Company’s key FMEG products include Electric Fans, LED Lighting and Luminaires, Switches and Switchgears, Solar Products, Pumps and Conduits and Accessories.

The Company has two manufacturing facilities in Maharashtra for Switchgears and Water Heaters, one in Uttarakhand for Ceiling Fans, and a 50:50 JV owned facility in Gujarat for LED products. Polycab also has third-party arrangements with manufacturers for some of its other FMEG products.

Polycab’s FMEG revenue has been steadily growing year-on-year registering a CAGR of about 47% during the past five years.

Considering the changing market trends and growth potential, Polycab has been consistently investing to strengthen its market position in FMEG in India, utilising its brand recognition, distribution network, diverse customer base, and manufacturing capabilities to its advantage.

Other (EPC and Subsidiaries)

Other segments in Polycab’s consolidated business includes Engineering, Procurement and Construction (EPC) and contribution from other subsidiaries. Started in 2009, the EPC business is the forward integration in Polycab’s wires and cables business and provides project-based turnkey solutions. It offers design, engineering, supply, execution, and commissioning of large-scale transmission and distribution projects for various government utilities in India and benefits from the in-house supply of wires and cables, which form a considerable share of the EPC contracts. The Company adopts a prudent approach in choosing projects. It uses an internal framework to evaluate and select projects with higher component of wires and cables supply in project value, optimal return of capital and up to acceptable risk levels.

Industry Overview

Fast-Moving Electrical Goods (FMEG) industry

Fast-Moving Electrical Goods (FMEG) are consumer electrical goods sold through various channels such as retail trade outlets and e-commerce platforms. These include products such as fans, lights, luminaires, switches, switchgears, pumps, conduits, fittings and so on. Over the years, this industry has evolved rapidly with increasing participation of organised players and emphasis on branding. Structural drivers like changes in demography, consumer behaviour, technology and rising disposable incomes have catapulted the growth of the organised FMEG sector in India. Meanwhile, the unorganised market, which makes up 10-50% across categories, has been on a steady decline. 4

During the year, growth in the FMEG sector was relatively weak largely on account of the pandemic. The nationwide lockdown in the first quarter disrupted retail trade significantly. The downtrend in realty also added as a dampener. The impact was more pronounced for seasonal products such as fans, air coolers and others during this period. Consumer sentiment and demand started recovering with the gradual unlocking. Accordingly, the second half of FY21 saw healthy growth across FMEG categories. Competition amongst the large, organised players remained high although the unorganised sector suffered degrowth due to various challenges such as unavailability of labour, raw material and credit. A sharp surge in input costs along with supply chain constraints led to significant margin pressure. As a result, established players with well-entrenched distribution network gained market share.

While growth prospects of the organised market in this sector remains appealing over medium to long-term, a surge in COVID-19 cases has again led to markets remaining shut and consumers staying away from discretionary spending. With restrictions on movement, occupation of new residential premises has also witnessed a sharp decline, which has directly impacted the sales of FMEG products. This is likely to hamper the demand momentum seen in the second half of FY21 over the near term.

Wires and Cables Industry

The domestic wires and cables market, at about Rs 450-500 billion, makes up approximately 40-45% of the Indian electrical industry. Generally, wires consist of a single conductor while cables involve one or more conductors that are used for the transmission of electricity, data or signals. 

The domestic wires and cables industry suffered contraction in FY21 because of economic slowdown on account of the pandemic. Various end-user industries were hit by the lockdown while most ongoing or planned projects were stalled. Investments in construction and infrastructure slowed down as the government prioritised spending on healthcare to fight the pandemic while private industry lacked demand visibility. Consumer sentiment remained low, hampering discretionary spends. While the situation is improving gradually, as seen from various macro-economic indicators such as the Index of Industrial Production (IIP) data – which stood at 54 in April 2020 (vs 126 in April 2019) and 129 in February 2021 (vs 134 in February 2020) – the overall slowdown persisted throughout the year. A sharp uptick in prices of key raw materials such as copper, aluminium, steel and PVC, along with their availability, as well as labour and supply chain constraints added to the complexity of the business environment.

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Business Segments

FMEG Segment

FMEG business crossed Rs 10bn mark in during the year. Over the past five years, revenue grew at 37% CAGR, boosting the contribution of this segment to the Group’s performance. In FY21, FMEG revenue stood at Rs 10,341 million, compared to Rs 8,356 million in FY20, registering a 24% YoY sales growth over FY20 despite the severe impact of the pandemic in the first quarter. Performance was underpinned by healthy consumer demand, distribution, and strong execution. Growth as well as market share gains were prominent across the board. The segment accounted for 11.5% of total sales for the year under review, up from merely 3.8% five years back. Segmental operating profit increased by 236% YoY to Rs 566 million. Segmental margin improved to 5.5% on account of pricing actions, design and cost optimisation, improved sales mix, and deft working capital management.

Fans and Appliances

The market for fans, at about Rs 99 billion, grew by 6% YoY in FY21, largely driven by organised players while the unorganized market underwent degrowth due to challenges on various fronts. The market is gradually moving towards energysaving, convenient, smart and intelligent, health-oriented, personalised products. Accordingly, Polycab India has aligned itself  to this demand. A focused programme is underway to develop and launch premium and value-added products in each sub-category.

Polycab Fans and Appliances business closed the year with a healthy growth despite loss of sales in the first quarter, which is traditionally the highest selling quarter. While demand started picking up in the second quarter, steep rise in input costs dragged profitability. Growth in the second half was strong enough to counterbalance the impact of the first half. FY21 was marked by strong focus on improving business processes. Working capital was optimised with lower inventory levels and increased channel finance through the enrolment of a large number of distributors and dealers. The company augmented its supply chain and developed the Business Intelligence (BI) system for real time data analysis. The company also initiated reengineering for many of its products to offer optimum deliverables at competitive prices. While the premiumisation drive continued, calibrated pricing actions were taken across the core portfolio. Investments in Below the Line (BTL) and social media advertising to increase awareness among consumers, influencers, and its channel partners continue. Advertising on television during the key cricket season helped brand recall. Distribution expansion continued, albeit at a slower pace due to pandemic-related uncertainties.

During the year, the company developed an innovative special coating for fans with help from its technology consultants and launched India’s first 4-in-1 protection fan (anti-ageing, anti-bacteria, anti-dust, anti-rust) – Polycab Purocoat fans. This range comes in 14 different models and 30+ colours. The company also launched its super premium Hohm product range, which are IoT-enabled and aligned towards the preference of the younger generation. Overall, the Company launched 100+ SKUs in the last 18 months and has a strong new product pipeline of many innovative and pioneering products waiting to be launched in the coming year

Lighting and Luminaires

Lighting and Luminaires industry at about Rs 227 billion grew in low single digits over last year. The market for lights was broadly stable while the luminaire market was impacted on account of relatively lesser number of new projects.

The company's Lighting and Luminaires business posted strong industry-leading growth over the last year despite tough market conditions and input cost inflation. This was largely driven by improved sales force productivity and distribution reach, supply chain enhancement and its decision to increase its support to channel partners. Polycab India has developed a pan-India distribution network progressively, and today Polycab lighting is a national brand that finds representation in all states. Having identified the gaps in the market, Polycab India has launched various products such as bulbs, 36W battens, frameless panels, chip on board (COB), strip lights, streetlights, flood lights amongst others. The company also launched a range of smart products under the Hohm brand.

Switches and Switchgears

The domestic switches industry stood at about Rs 50 billion, growing by about 10% YoY in FY21, while the domestic switchgears industry, at Rs 209 billion, was broadly stable. Overall, the market environment continued to remain challenging, leading to subdued industry growth. A dampened real estate sector has directly impacted consumption in both these categories of products.

In switchgears, the Company tried to unlock synergies by leveraging the strength of the housing wire distribution and sales team to reach out to more customers. This led to about 2.5x sales in the second half of the year compared to last year. Switches saw healthy sales despite the challenges, led by its focused market strategy, improved value proposition and increased productivity. The Company launched a new portfolio of portable accessories including multiplugs, adapters, power strips with USB ports, flex box and others. These entrylevel products at every electrical counter will help seed new consumers. The company will continue to augment its portfolio in this high growth segment in the coming year. Polycab India is also planning to launch a new range of switches, Miniature Circuit Breakers (MCBs), and Residual Current Circuit Breaker (RCCBs), across price points, in the switchgear segment. While the demand for high quality, premium products is likely to sustain, government initiatives such as compulsory installation of RCCBs and compulsory BIS standards for sockets provides an additional thrust to the organised market.

Other FMEG categories

The company's Other FMEG business primarily comprises three segments – pumps, conduit and accessories, and solar products. These are relatively smaller businesses within the larger FMEG basket and registered a healthy growth in FY21.

The pipes and fittings business saw healthy double-digit growth in FY21. This was driven by good market acceptance on account of high-quality products offered at competitive prices. During the year, the company started in-house manufacturing of concealed metal boxes and a few other smaller products. Given the vast market opportunity of about Rs 50 billion, Polycab India is scaling up its team and systems to augment this business.

The company's Solar business vertical offers on-grid inverters, solar panels and solar DC cables. Growth in the first half was impacted by lockdowns. However, in the second half of FY21, the business grew strongly led by competitive pricing strategies and strong after sales service. Going ahead, the company aim to introduce off-grid/hydrid inverters with battery backup systems and Polycab solar kit in both on-grid and off-grid solar systems. Government initiatives such as the National Solar Mission and sustained campaigns to promote renewable energy bode well for this business.

FMEG: Business Outlook

The company's total available FMEG market is likely to grow over the next five years on the back of rising consumer affordability, evolving technology, and product innovation. Increasing consumer awareness, government regulations to further consumers’ interests, higher compliance costs and a volatile market environment are likely to pave the way for greater consolidation in the organised market. Growing emphasis on enhanced buying experiences is also another trigger for change in the segment.

The company's FMEG business is a natural extension of its wires and cables business, considering the synergies in terms of procurement, manufacturing knowhow, distribution, and target market. To leverage this opportunity, Polycab India has built strong capabilities and brand image over the past many years. The company's focus on quality and design, safety and energy-saving features with great value proposition has worked well for the brand, and this agenda will continue.

The company expect to drive the next leg of growth through premiumisation, consumercentric innovation, an augmented go-to-market strategy and by exploring adjacencies (See Project Leap section for more details). Project Shikhar, its recently launched initiative, will help it improve its retail reach as well as connect with key influencers, and drive its FMEG.

Wires and Cables Segment

In FY21, Wires and Cables revenue declined by 3% YoY to Rs 72,921 million, compared to Rs 75,192 million in FY20. This was largely on account of severe impact of pandemic and high exports base, partly compensated by strong business performance in second half and higher realisation. Sequential pickup in infra and industrial project activities from second quarter onwards along with improving consumer sentiment enabled favourable business environment. The segment accounted for 81% of total sales for the year under review. Segmental operating profit at Rs 9,164 million was broadly in line with last year while segmental operating margin at 12.6% improved by 26bps YoY. Sharp surge in input costs was mitigated by calibrated pricing actions, improved product mix and cost optimisation initiatives.

Cables

The domestic cables business was impacted in Q1 FY21 by the pandemic and subsequent lockdowns, however it saw gradual revival in demand as the market inched towards normalcy. Sales from authorised dealers and distributors was healthy, driven by demand from lower tier towns and smaller project orders. However, institutional business was sluggish due to stalling of several large projects in the first half. Trends in the next quarter seemed favourable with new and existing projects picking up pace, especially in industries such as solar, real estate, chemicals, textiles, pharma and from the railways and metros. Better raw material planning and finished goods availability provided better market opportunities during unlocking. Increase in competition as a result of lower capacity utilisation across the industry was counterbalanced by a dynamic pricing strategy and focus on quality. The company continued its market expansion to increase its direct presence, with particular focus on Tier 3 towns and below. Expansion is likely to be scaled up further in FY22. During the year, the company migrated the entire sales process to a new customer relationship management (CRM) tool, which significantly helped improve sales conversion through higher sales team productivity, and improved customer and project data capture and analytics. Implementation of the BI tool helped design better near-term sales strategies.

business in the overall revenue decreased from 12.4% in FY20 to 8.5% in FY21, primarily on account of a large order for a project in Nigeria in base year. In FY21, the company appointed several large distributors across geographies, such as in Australia, Europe, the US and Africa and this business saw a decent pickup. While the demand in global markets remained subdued in H1, the company proactively focused on enhancing its product portfolio for large customers in key industries such as renewables, oil and gas and utilities as well as on acquiring quality certifications from global agencies. The drive for geographical and customer base expansion across markets continued. These initiatives helped it post a strong 65% YoY growth in its export portfolio, excluding the large order. While Polycab is a leading wires and cables exporter in India, Polycab India is also actively exploring export opportunities for its FMEG products.

The company's telecom business was severely impacted by the pandemic and saw a degrowth in FY21. During the year, the Company worked as a Project Implementing Agency (PIA) with its consortium-partner in BharatNet’s Phase-II project for Package-3 in Bihar and Package-B in Gujarat. Polycab India has already executed the Bihar project and the Gujarat project is near completion. Effective completion of these projects in record time was widely appreciated by the policymakers as well as customers. Successful execution of the project in in Bihar was recognised by the 19th Global Edition and 4th India Edition of World Leadership Congress and award of Business Leader of the Year with the Best Innovation Project.

During the year, the company also forayed into end-to-end passive networking solutions. With this new range, the company will be able to support high-speed broadband, IoT-connectivity, and other new and emerging applications with the roll out of 5G network in India.

Wires

The Wires business achieved a healthy double-digit growth in FY21, more than compensating for lost business in the first quarter. This growth was due to higher realisations, distribution expansion and a favourable macro environment in the second half of the year. Within the Wires portfolio, housing wires performed relatively better with the gradual resumption of real estate constructions, smart cities projects, as well as various government initiatives such as reduction in stamp duty and circle rates. Decadal low housing loan rates with improving consumer sentiment further provided a fillip to demand for residential real estate, which augured well for wires. Consumer offtake of B2C wires remained healthy with pickup in renovation activity from the third quarter onwards. The shrinking share of the unorganised market in several pockets of the country was capitalised by the Company through excellent on-ground execution. Pressure from a sharp surge in input costs during the year was mitigated through phased price hikes and better operating leverage. Improved productivity through implementation of the new sales CRM platform and BI tools, coupled with optimised working capital, helped improve profitability

Wires and Cables: Business Outlook

Outlook for the wires and cables industry in the medium to long-term remains positive given its diverse usage. Demand is likely to recover gradually, driven by numerous government initiatives such as National Infrastructure Pipeline (NIP), production-linked incentive schemes, focus on indigenous manufacturing, higher budgetary allocation for capital expenditure, renewable energy push, digital infrastructure push, and liquidity infusion amongst others. The ongoing vaccination drive and recovery of consumer sentiment bode well for demand of many end-user industries. spurring private investments as well as demand for B2C products like housing wires. The global cables market, estimated to be around $140-150 billion, is another avenue for growth for well-established players with robust manufacturing and supply capabilities.

Given the diverse utility of wires and cables, the growth of this industry is likely to go hand in hand with the economic growth of India over the medium to longterm. Over the past many years, Polycab India has built strong moats around its business that has helped it gain and maintain market leadership. Going ahead, the company aim to bolster its market position and grow through strategic interventions such as a customised go-to-market approach, right sizing of the business model, building a robust business development structure, and business decision-making driven by digital and analytics (See Project Leap section for more details). The growth will also be supplemented by the scale-up in adjacencies and exports business, which hold significant potential. Project Shikar will help it improve its retail reach as well as connect with key influencers, helping drive the housing wires business in the medium term (See Project Shikhar section for more details). From a macro standpoint, government initiatives as highlighted in the previous section as well as rising consumer income, safety and energy-efficiency awareness, and growing consumer aspirations augur well for its business. Formalisation and consolidation of the industry due to the pandemic is a win-win situation for consumers as well as for organised players. Project Udaan, its cost optimisation programme, will help it weed out inefficiencies and bad costs, thereby enabling it to achieve operational excellence.

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Financial Highlights

During the year ended March 31, 2021 Polycab India Limited (PIL) recorded a consolidated turnover of Rs 89,265 million as against Rs 88,300 million in the previous year, implying a 1.1% YoY growth. The consolidated EBITDA (excluding other income) and consolidated profit after tax stood at Rs 11,668 million and Rs 8,859 million in FY21 as against Rs 11,276 million and Rs 7,656 million in the previous year, respectively.

The Company made tremendous progress across many of its core enablers of business. During the year authorised dealers and distributors count grew by about 17% YoY to over 4,100. Retail outlet reach increased by about 32% YoY to over 165,000 while electricians on the influencer Programme grew by about 33% YoY to over 180,000. The Company also opened 7 knowledge and experience centres across many large cities across India. On the Supply chain side state-of-the-art Mobile Supply Chain Application (MSCA), which tracks its actual production and supply data in real time was implemented. It is integrated with ERP system is managing customer demand and inventories in an impressive manner, with on-time-in full (OTIF) deliveries up to 95-98%. Implementation of ERP, cloud integration, digital-first mindset, data-driven decisions and roll out of apps like dealer portal has eased business activities and customers experience. Performance management system has been upgraded to associate individual and team goals to company aspirations.

On a standalone basis, the company achieved a turnover of Rs 87,364 million as against Rs 88,069 million in the previous year. The EBITDA is Rs 10,909 million as against Rs 11,170 million for the previous year. Standalone Profit after tax is Rs 9,955 million as compared to Rs 10,035 million of the preceding year.

Highlights Consolidated FY2021

Revenue grew 1% YoY to Rs. 89,265 mn led by strong performance in second half of the year offsetting severe impact of COVID-19 outbreak. Sales contribution from B2C product portfolio, on a standalone basis, grew from 32.6% in FY20 to 40.2% in FY21 5

Wires and cables business declined 3% YoY to Rs. 72,921 mn in FY21 from Rs. 75,192 mn in FY20 hurt by pandemic and lockdowns in first half of FY21 and a higher exports base of FY20.

FMEG business grew 24% YoY to Rs. 10,341 mn in FY21 from Rs. 8,356 mn in FY20, despite challenges, showcasing strong consumer traction. FY21 margin at 5.5% was higher by about 350bps YoY

PBT grew 5% YoY to Rs. 10,650 mn in FY21 from Rs. 10,100 mn in FY20 offsetting adverse operating leverage.

PAT was up 16% YoY at Rs. 8,859 mn in FY21 from Rs. 7,656 mn in FY20. PAT margin at 9.9% in FY21, was up 125bps YoY partly reflecting few one off gains.

Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “FY21 has been an extraordinary year marked by disruption, resilience, compassion, and transformation. The company's endeavour to ensure safety of Polycabians and help the society at large remains untethered. Concurrently, the company also ensured uninterrupted operations through agility and technology which helped it leverage the favourable market trends and report robust business performance in the fourth quarter. Polycab India is excited to commence on a journey towards its five-year vision which will shift orbits of its brand positioning, operations, and business growth along with strong emphasis on governance and sustainability. Considering its ongoing transformation initiatives, I believe Polycab India is well placed to take a leap and create long term value for everyone connected to Polycab“

References

  1. ^ https://polycab.com/about-us/
  2. ^ https://polycab.com/about-us/history/
  3. ^ https://polycab.com/wp-content/uploads/2020/06/Polycab-India-Ltd-AR-2019-20.pdf
  4. ^ https://polycab.com/wp-content/uploads/2021/07/Polycab-India-Limited-Annual-Report-2020-21-1-2.pdf
  5. ^ https://polycab.com/wp-content/uploads/2021/05/Press-Release.pdf
Tags: IN:POLYCAB
Created by Asif Farooqui on 2020/11/23 11:30
     

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