Polycab India, a leading manufacturer of wires and cables, on Thursday reported a 32 per cent growth in net profit at Rs 283.2 crore in the March quarter on higher revenue.
Consolidated revenue grew faster at 43 per cent to Rs 3,037.4 crore during the period, the city-headquartered company said in a statement.
For the full-year, it reported a net profit of Rs 885.9 crore, up 16 per cent over FY20 on a revenue of Rs 8,926.5 crore, which inched up 1 per cent from the previous year.
“The fiscal year gone by was an extraordinary year marked by disruptions but we could ensure uninterrupted operations through agility and technology which helped us leverage the favourable market trends and report robust business performance in the fourth quarter, Inder T Jaisinghani, chairman and managing director of Polycab India, said.
He attributed the 43 per cent revenue growth at Rs 3,037.4 crore to healthy underlying growth across segments and rising share of its consumer facing business.
Wires and cables business grew 35 per cent to Rs 2,487.5 crore in Q4 from Rs 1,843.4 crore in Q4 of FY20 led by healthy pick-up in infra and industrial project activities, improving consumer sentiment, and higher sales realisation.
Business performance was broadly consistent across distribution channels as well as institutional business, which saw a decent sequential recovery as housing wires sustained strong momentum.
FMEG (fast moving electrical goods) business grew 89 per cent to Rs 346.8 crore in Q4 from Rs 183.3 crore a year ago, on the back of healthy consumer demand, distribution and strong execution and growth was strong across categories and regions.
Market share gains were prominent across the board and segmental operating margin stood at 7 per cent in Q4, up over 100 bps from Q3, he said, adding margin stood at 9.3 per cent.
Net cash position stood at Rs 905.8 crore, up 31.9 per cent in Q4.
He said the revenue growth was muted as the flagship wires and cables business declined 3 per cent to Rs 7,292.1 crore in FY21 hurt by the pandemic and lockdowns in first half and a higher exports base of FY20.
FMEG business grew 24 per cent to Rs 1,034.1 crore for the year from Rs 835.6 crore in FY20, despite challenges, showcasing strong consumer traction. Overall margin stood at 5.5 per cent, up 350 bps.
Polycab is a leading a electricals brand and one of the largest manufacturers of wires and cables. Its new consumer facing business includes electric fans, LED lighting and luminaires, switches and switchgears, solar products, pumps and conduits and accessories sold through 1.65 lakh retailers and exported to over 55 countries.
It owns 23 manufacturing facilities located in Gujarat, Maharashtra, Uttarakhand, and Daman.