Polycab India reports 15.3% increase in Q3 net profit to Rs 416.51 crore

Polycab India disclosed a robust 15.3 percent surge in net profit for the December quarter, reaching Rs 416.51 crore compared to Rs 361.69 crore in the corresponding period last year.

The company’s net sales for the quarter amounted to Rs 4,340.47 crore, reflecting a substantial 16.8 percent increase from the previous year. In an exchange filing, the cables and wires manufacturer highlighted that the total cost experienced a noteworthy 19 percent rise, reaching Rs 3,865.06 crore.

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The revenue from wire and cable operations witnessed a significant jump to Rs 3,900 crore, marking a 17 percent year-on-year increase. However, revenue from the Fast-Moving Electrical Goods (FMEG) segment declined by 13 percent from the previous year to Rs 296 crore. On the other hand, other revenue recorded an impressive 97 percent increase, reaching Rs 248 crore, according to Polycab India.

Addressing the Income-Tax authorities’ search conducted in December 2023 at specific premises, plants, and employee residences, Polycab India emphasized its full cooperation in providing necessary details, clarifications, and documents.

Up to the issuance date of the financial results, the company had not received any written communication from the department regarding the search outcome. The management, relying on available records, expressed the belief that there is no material adverse impact on the company’s financial position. Consequently, no material adjustments are deemed necessary for the quarter and the nine months ending December 31, 2023.

On January 11, Polycab India’s stock experienced a significant decline of over 21 percent following the Income-Tax department’s announcement of a search on “a cable and wire company” in December, uncovering unaccounted cash sales of approximately Rs 1,000 crore. Subsequently, the stock rebounded by 16 percent as several brokerages maintained a positive stance, increasing the target price.