Polycab India Ltd. reported its June quarter results on Thursday, causing its stock to fall from session highs. Revenue for the quarter increased by 21% year-on-year to ₹4,698 crore, but this was below CNBC-TV18’s poll estimate of ₹4,829 crore. Net profit stood at ₹401.6 crore, also missing the poll estimate of ₹458 crore and showing flat growth compared to the same period last year.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 6.4% year-on-year to ₹583.3 crore, which was below the expected ₹651 crore. The EBITDA margin for the quarter narrowed by 170 basis points to 12.4%, falling short of the 13.5% estimate.
Within business segments, Earnings Before Interest and Taxes (EBIT) declined by 5% year-on-year to ₹497 crore, with margins dropping to 12.6% from 15% in the previous year.
Polycab also addressed the recent Income Tax raids at its premises, which had initially caused a steep fall in its stock price. The company stated that it has not received any written communication from the department regarding the outcome of the search, and thus any potential impact on financial results is currently unascertainable.
Despite these challenges, shares of Polycab have recovered from the day’s lows, trading 0.2% higher at ₹6,641. The stock has risen 22% so far in 2024.
