Results for the fourth quarter and full year ended March 31, 2022
- Q4FY22 Revenue at Rs. 39,700 mn; up 35% YoY
- Q4FY22 EBITDA at Rs. 4,760 mn; up 18% YoY
- Q4FY22 PAT at Rs. 3,253 mn; up 20% YoY
- FY22 Revenue at Rs. 1,22,038 mn; up 39% YoY
- FY22 EBITDA at Rs. 12,626 mn; up 14% YoY
Polycab India Limited (BSE: 542652, NSE: POLYCAB) today announced its consolidated results for the fourth quarter and full year ended March 31, 2022.
Commenting on the performance, Mr. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: “Our strong performance in fiscal year 2022 was underpinned by the extraordinary efforts of our team to achieve new milestones even in one of the most uncertain environments. We delivered accelerated business growth, record free cash flow, healthy returns on capital and market-leading shareholder returns. We will champion our renewed purpose of innovating for a brighter living. Our “i-POWER” values will guide our thoughts and actions which will help us create long term sustainable value for all stakeholders and enrich the lives of everyone connected with Polycab.”
Key Highlights (Q4 FY22)
- Revenue grew 35% YoY to Rs. 39,700 mn on the back of healthy demand environment despite sharp inflation coupled with strong execution.
- Wires and cables business grew 39% on YoY basis to Rs. 35,110 mn in Q4FY22 from Rs. 25,305 mn in Q4FY21. Demand environment continued to remain encouraging. Domestic distribution driven business continued to see strong traction. Housing wires posted strong growth led by continued momentum in real estate and renovation activities as well as demand generation initiatives. A new sub brand “Etira” was launched in the economy price segment. Trade sentiment in Cables was temporarily restrained by significant volatility in Aluminium prices. Exports business was 2x of last year led by strong demand from sectors like Oil & Gas, Renewables and Infrastructure globally. Segmental margins continued to improve sequentially led by judicious price hikes and improved operating leverage.
- FMEG business grew 9% YoY to Rs. 3,792 mn in Q4FY22 from Rs. 3,468 mn in Q4FY21. Overall demand momentum in Q4 was albeit subdued largely attributable to broader inflation. The business also underwent realignment exercise to improve sales force efficacy and achieve distribution synergies. Fans, lights and switchgears business posted healthy growth while Conduit Pipes continued the strong momentum. Switches saw a decline due to supply challenges. Transition to inhouse manufacturing of switches is in progress. Solar business was muted however for the full year it achieved over 50% YoY growth.
- EBITDA margin continued to improve sequentially by 125bps to 12.0% led by price hikes and better operating leverage, partly offset by persistent input cost pressures. PAT margin improved to 8.2% against previous quarter. PAT grew 20% YoY.
- As of 31 March 2022, Net Cash position stood at Rs. 11.0 bn as against Rs 9.6 bn last year. Debt to Equity decreased to 0.01x.
Key Highlights (FY22)
- Revenue grew 39% YoY to Rs. 1,22,038 mn despite the two waves of pandemic and unprecedented inflation.
- Wires and cables business grew 41% YoY to Rs. 1,06,953 mn in FY22 from Rs. 75,806 mn in FY21 led by healthy demand environment and strong execution.
- FMEG business grew 21% YoY to Rs. 12,544 mn in FY22 from Rs. 10,341 mn in FY21 with healthy annual growth across product categories.
- PBT grew 12% YoY to Rs. 11,159 mn in FY22 from Rs. 9,958 mn in FY21 despite adverse operating leverage seen in first quarter.
- Adjusted PAT at Rs. 8,452 mn in FY22 from Rs. 7,415 mn in FY21 grew 14% YoY. Adjusted PAT margin stood at 6.9%.
Note: Ryker Base divestment transaction was consummated in December 2021. Consequently, P&L and segment numbers for prior comparable periods are restated in accordance with the applicable accounting standard.
