Polycab Ltd, conducted their conference call on 7th June 2021.
" Target to attain more then Rs 200 Bn sales by Fy2026 "
Here are the key takeaways ππ...
" Target to attain more then Rs 200 Bn sales by Fy2026 "
Here are the key takeaways ππ...
Business Report
- Company has generated positive growth this period as well.
- They now command about 20-22% share of organized wires and cables market of India.
- There is a strong momentum around housing wires.
- They still have strong B2B scale-up.
- Company has generated positive growth this period as well.
- They now command about 20-22% share of organized wires and cables market of India.
- There is a strong momentum around housing wires.
- They still have strong B2B scale-up.
- With upcoming position in B2C strong business is expected.
- Company has increased its focus to leveraging digital to transform business model.
- Distribution levels and retail has reached a good scale to 17% and 32%.
- New concept are been planned and worked upon.
- Company has increased its focus to leveraging digital to transform business model.
- Distribution levels and retail has reached a good scale to 17% and 32%.
- New concept are been planned and worked upon.
- Employees are been provided all types of knowledge and professional support to grow and help business attain it's multi year transformation.
- They will keep adding value for business growth.
- They will keep adding value for business growth.
Products
- Companies wire and cables business delivered a strong growth on qoq scale due to healthy pickup of infra and other industrial project's.
- International business was hit hard but has shown decent sign of recovery.
- Companies wire and cables business delivered a strong growth on qoq scale due to healthy pickup of infra and other industrial project's.
- International business was hit hard but has shown decent sign of recovery.
- Under FMCG, There was a huge jump in the revenue and EBIT margins on both yoy and QoQ scale.
- This was due to healthy customer demand, distribution and strong execution.
- In it, light growth segment got almost doubled. Their Switches and Switchgears grew by almost 2.5x.
- This was due to healthy customer demand, distribution and strong execution.
- In it, light growth segment got almost doubled. Their Switches and Switchgears grew by almost 2.5x.
- There is further improvement in the product mix and other initiatives are been taken by them to be more profitable.
- Other segment product, like EPC business were hit very hard by covid and had delivered poor yearly performance.
But There is a strong receive on QOQ basis.
- Other segment product, like EPC business were hit very hard by covid and had delivered poor yearly performance.
But There is a strong receive on QOQ basis.
- Copper backward integration has helped Company to maintain their margins.
- Company do its best in terms of change in prices to avoid any reduction in our margin levels.
- This Strong opportunity came from private sector.
- Company do its best in terms of change in prices to avoid any reduction in our margin levels.
- This Strong opportunity came from private sector.
Financials and Investments
- On Yearly scale, PAT levels have seen a huge jump of about 16%.
- Revenue and EBITDA grew by about 9% & 12% on QOQ basis. It was due to improving share in B2C business and availing leverage benefits along with cost savings.
- On Yearly scale, PAT levels have seen a huge jump of about 16%.
- Revenue and EBITDA grew by about 9% & 12% on QOQ basis. It was due to improving share in B2C business and availing leverage benefits along with cost savings.
- Business didn't grew much due to Covid-19 impact on yearly scale.
- Companies expense on advertisement has reduced a lot compared to previous year and it has does impacted their sales.
- Capex expenditure in Fy21 was around 700 cr and as looking recovery this will increase.
- Companies expense on advertisement has reduced a lot compared to previous year and it has does impacted their sales.
- Capex expenditure in Fy21 was around 700 cr and as looking recovery this will increase.
- Currently Company has an increasing net working capital on yearly scale.
- The Company has increased its dividend % this year.
- And The management has seen shift in its members as well.
- They are bullish on their cash conversion cycle and will take inorganic growth later.
- The Company has increased its dividend % this year.
- And The management has seen shift in its members as well.
- They are bullish on their cash conversion cycle and will take inorganic growth later.
- They have a Capex plans of around 300 cr for new period. This will majorly go to FMCG and rest in cable and wires
- Their cost optimisation project udaan has done well as they have been able to save about 200 points in cost and expect further.
- Their cost optimisation project udaan has done well as they have been able to save about 200 points in cost and expect further.
- To attain their 200billion rs mark in next 5 years, Company has a broad picture but they don't have specifics right now, but this information will definately come by next quarter.
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