Polycab India has announced a 15.3 percent surge in net profit for the December quarter, reaching Rs 416.51 crore compared to Rs 361.69 crore in the same period last year. The company’s net sales for the quarter reached Rs 4,340.47 crore, marking a 16.8 percent increase year-on-year. Wire and cable revenue experienced a significant boost, reaching Rs 3,900 crore, a 17 percent YoY increase. However, the Fast-Moving Electrical Goods (FMEG) revenue declined by 13 percent to Rs 296 crore. Another noteworthy development was a 97 percent surge in other revenue, reaching Rs 248 crore.
Despite robust financial performance, the company faced challenges as Income-Tax authorities conducted a search in December 2023 at various locations. Polycab India cooperated fully, providing necessary details, clarifications, and documents. As of the financial results’ issuance date, there has been no official communication regarding the search outcome. The management, relying on available records, believes that there is no significant adverse impact on the company’s financial position. Consequently, no substantial adjustments are deemed necessary for the quarter and nine months ended December 31, 2023.
Earlier this month, Polycab India’s stock experienced a substantial decline of over 21 percent following an announcement by the income-tax department about a search on a “cable and wire company” in December, revealing unaccounted cash sales of about Rs 1,000 crore. However, the stock rebounded by 16 percent as several brokerages maintained a positive stance, subsequently increasing the target price.
