Polycab India Ltd that has seen its share prices have doubled over last one year to 52 week highs seen on Tuesday. The Strong growth in wires and cables business being lifted by strong government infrastructure push and good real estate demand has been one of the key reasons for this investor confidence on Polycab. Polycab reported profit for the quarter ending September at ₹4,255.68 crore attributable to shareholders of the company) saw a sharp rise of 58.8% compared to ₹2,679.68 crore in the year-ago quarter.
On a sequential basis also Polycab’s net profit improved 6.5% sequentially. The same was helped by strong improvement in the operating performance. The reported operating profits at 6,08.9 Crore rose 43% YoY and 11% sequentially.
The operating margins improved by 160 basis points year-on-year to 14.4%. Better operating leverage and favorable product mix contributed to margin improvement. Also Read- Persistent Systems Q2 Results: PAT grows 20%, revenue rises 18% YoY on robust order bookings The company’s revenues from operations at ₹4217.6 crore also grew by 27% YoY and 11% sequentially.
Analysts at Elara Securities India Pvt Ltd in their first cut post results said that Q2 consolidated revenue beats consensus estimates by 4% while Ebitda was 9% higher than consensus estimates). The EBITDA margin at 14.4% was the highest in the last 12 quarters led by mix and operating leverage as per analyst at Elara. Also Read -Syngene MD and CEO Jonathan Hunt expects US Biotech segments recovery by Q4 after having cut company's FY24 guidance The company’s strong performance in Q2 FY24 was led by strong volume growth in the wires & cables business that contributes almost 90% to overall revenues.
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