Polycab (POLYCAB) Q2 24/25 earnings summary

Executive summary

• Achieved record revenue and PAT for Q2 and H1 FY25, with Q2 revenue at ₹54,984 million, up 30% YoY, and H1 revenue surpassing ₹100 billion, up 26% YoY.

• EBITDA for Q2 FY25 was ₹6,316 million, up 4% YoY; PAT for Q2 FY25 was ₹4,452 million, up 4% YoY; margins compressed due to competition and higher expenses.

• Strong growth driven by robust market demand, execution, and distribution network strength.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024.

• Demand expected to pick up in H2, with the company prepared to capitalize on opportunities.

Financial highlights

• Q2 FY25 consolidated revenue: ₹54,984 million (30% YoY, 17% QoQ); H1 FY25 revenue: ₹101,965 million (26% YoY).

• Q2 FY25 EBITDA: ₹6,316 million (11.5% margin); H1 FY25 EBITDA: ₹12,149 million (11.9% margin).

• Q2 FY25 PAT: ₹4,452 million (8.1% margin); H1 FY25 PAT: ₹8,468 million (8.3% margin).

• Net cash from operating activities in H1 FY25: ₹13,289 million; net cash position at period end: ₹24,296 million.

• Working capital cycle improved to 44 days due to inventory clearance and better trade pay days.

Outlook and guidance

• Confident of achieving ₹200 billion revenue in FY25, a year ahead of the original FY26 target.

• Margins expected to improve in H2, with EBITDA margin guidance of 12%-14% for cables and wires.

• Domestic wires & cables growth expected to continue, driven by government spending, private investments, and real estate demand.

• Annual sustainable operating margin for EPC business expected in high single digits over mid- to long-term.

• Next five-year goal to be disclosed by end of current financial year.