Polycab India has announced a 46 per cent year-on-year growth in its wires & cables business in Q1 of FY24.
In a release, Polycab India said that its overall revenue grew 42 per cent year-on-year to reach Rs.3889.40 crore, on the back of a strong volume of growth in the wires & cables business. This growth was despite lower commodity prices, the company said.
Revenue from the wires & cables business grew 46 per cent year-on-year to reach Rs.3487.40 crore, on the back of strong volume growth in both the domestic and international markets.
Domestic distribution driven business sustained its strong growth momentum, while institutional business exhibited remarkable growth acceleration. Geographically, growth was broad based, with highest growth coming from North region.
Cables growth continued to outperform wires growth. Segmental margins improved by around 330 basis points year-on-year, led by judicious price revisions, better operating leverage and strong growth in international business
Polycab India’s revenue from international business grew by 88 per cent in Q1 of FY24, contributing to 8.9 per cent of the consolidated revenue. The company expanded its global footprint to 72 countries, the release noted.
Private capex improving
Commenting on the performance, Inder T. Jaisinghani, Chairman & Managing Director, Polycab India, said: “We have commenced the financial year exceptionally well, registering our best-ever first quarterly revenues and profitability. The government’s strategic focus on infrastructure development and structural reforms, improving private capex and continued momentum in real estate has further fuelled our success, yielding us favourable results. The improved growth momentum is also a result of a combination of strategic initiatives implemented through Project LEAP, along with our unwavering dedication to customer-centricity, a diverse array of high-quality products, and a robust distribution network. Our outstanding quarterly performance serves as a testament to the robustness of our business model.”