Icon times
Polycab Q4 FY22 Result Analysis & Conference Call Highlights | Strong top-line growth led by wires and cables but bottom-line growth is affected due to inflation, margins improving on a QoQ basis due to improved efficiencies, and price hikes

Polycab Q4 FY22 Result Analysis & Conference Call Highlights | Strong top-line growth led by wires and cables but bottom-line growth is affected due to inflation, margins improving on a QoQ basis due to improved efficiencies, and price hikes

Published on 11 May 2022 .Views 95 .Comments 0
Share On
  • 25% of the total growth was related to volume and 75% was related to value both in Wires and Cables as well as FMEG (fast moving electrical goods) segments.
  • Yearly Capex: Rs 300- 350 Cr on a sustainable basis going forward excluding Mergers and acquisitions and entering into new product categories. 2/3rd of Capex will go for Wires and Cables and rest of it in FMEG.
  • Wires and Cables have 60% of business from B2B and remaining from B2C. Company has consistently been increasing B2C sales which is more margin accretive.
  • FMEG growth was affected by realignment strategy, supply side issue related to switches. Company is planning to manufacture switches in-house.
  • Part of project leap- multi year transformation journey. To reach 20,000 Cr revenues by FY26 and EBIT Margins for FMEG to 12%.
  • Wires and Cables EBIT margins to remain in 11-13% band on a sustainable basis.
  • Inventory are at normalised levels across the business segments.
  • Cables and Wires depends on copper. Hence, company has sourced some of its dependence from local sources while majority of it is imported. Imported is good for the company because the payable days can be 90-180 days but in case of domestic it is cash and carry mode only. Hence, company will balance the sourcing, most of it from imports. Due to increased cash and carry during the year, payables have reduced. But it will stabilise in the near term.
  • Company is looking to enter into EHV cables which are difficult to manufacture as compared to the other cables.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF

LEGAL DISCLAIMER:

Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

DISCLOSURES UNDER SEBI (RESEARCH ANALYST) REGULATIONS, 2014:

Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349. Disclosure with regard to ownership and material conflicts of interest
1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;
2. Neither Research Analyst nor the entity nor its associates or relatives have actual / beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;
3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.
Disclosure with regard to receipt of Compensation
1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs. 9,999.00/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

Recently Uploaded

premium Premium
free Free
Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya