Polycab India reported a strong financial performance for Q2 FY2025, with significant growth in both revenue and net profit. However, the company faced a 290 basis point (bps) year-on-year (YoY) decline in margins due to increased competitive intensity in its Wires and Cables (W&C) business, leading to a more than 5% drop in its stock price.
Key Financial Highlights:
- Revenue from Operations: ₹5,498.42 crore in Q2 FY2025, up 17% quarter-on-quarter (QoQ) from ₹4,698.04 crore in Q1 FY2025, and 30% higher YoY from ₹4,217.69 crore in Q2 FY2024.
- Net Profit: ₹445.2 crore in Q2 FY2025, up 3.2% QoQ from ₹416.16 crore in Q1 FY2025, and a YoY increase of 3.7% from ₹429 crore in Q2 FY2024.
Other Key Highlights:
- W&C business revenue: ₹460.67 crore, up 23% YoY.
- Fast-Moving Electrical Goods (FMEG) business revenue: Grew 18% YoY.
- International business contributed 6.1% to overall revenue.
Polycab’s Chairman and Managing Director, Mr. Inder T. Jaisinghani, expressed optimism about the company’s future, citing sustained growth, strong demand, and support from favorable government policies and private sector investments.
Despite the strong top-line growth, the decline in margins and heightened competition in the W&C business weighed on investor sentiment, leading to a sharp decline in the company’s share price.
As of 9:37 shares were trading 5.38% lower at ₹6,737.35
