Polycab India Limited

Polycab House, 771 Mogul Lane, Mahim (W), Mumbai – 400016 CIN: L31300GJ1996PLC114183 Tel : +91 22 2432 7070-74 Fax : +91 22 2432 7075 Email: [email protected] Website: www.polycab.com

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Date: 13[th] May 2021

To Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai – 400 001

To Listing Department National Stock Exchange of India Limited C-1, G-Block, Bandra-Kurla Complex Bandra (E), Mumbai – 400 051

Scrip Code: 542652 Scrip Symbol: Polycab ISIN:- INE455K01017

Dear Sir / Madam

Sub: Earnings Call Presentation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

In accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Earnings Call presentation on the Audited (Standalone and Consolidated) Financial Results of the Company for the quarter and year ended 31[st] March 2021.

Kindly take the same on your record.

Thanking you

Yours Faithfully

For Polycab India Limited

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___ Manita Carmen A Gonsalves Company Secretary and Compliance Officer Membership No.: A18321 Address: Polycab House, 771, Mogul Lane Mahim (West), Mumbai - 400 016

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Registered Office:

Unit No.4, Plot No.105, Halol Vadodara Road, Village Nurpura, Taluka Halol, Panchmahal, Gujarat-389350 Tel : 2676- 227600 / 227700

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Q4 FY2021 Earnings Presentation

13 May 2021

Q4 & FY2021 Financial Performance

Key Highlights

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Top-line (Revenue)

Q4FY21: 30,374 mn

43% YoY

9% QoQ

FY21: 89,265 mn 1% YoY

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Operating (EBITDA) Profitability (PAT)

Q4FY21: 4,220 mn

Q4FY21: 2,832 mn 32% YoY 7% QoQ

43% YoY

12% QoQ

FY21: 11,668 mn 3% YoY

FY21: 8,859 mn 16% YoY

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ROCE

Q4FY21: 31.9% 205bps YoY 133bps QoQ

FY21: 22.3% -417bps YoY

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Mobile App
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Notes: (1) Numbers on consolidated basis (2) Revenue: Revenue from operations (3) EBITDA excludes other Income (4) PAT: Profit After Tax on reported basis and includes exceptional items as explained on slide 10 (5) Annualised Returns On Capital Employed (ROCE)

Polycab India Limited | Q4 & FY21 Earnings Presentation

Q4 FY21: Strong underlying growth

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Revenue (INR mn) EBITDA (INR mn) Margin PAT (INR mn) Margin
13.8% 13.9% 10.1%
30,374 9.4% 9.3%
13.4%
27,988
4,220
3,763 2,636 2,832
21,294
2,151
2,948
43% YoY 9% QoQ 43% YoY 12% QoQ 32% YoY 7% QoQ
Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21
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Revenue was up by 43% YoY and 9% QoQ with healthy underlying growth across business segments and improving share of B2C business
EBITDA grew by 43% YoY with 13.9% margin helped by pricing actions, leverage benefits and cost saving initiatives
PBT and PAT was up 36% YoY and 32% YoY, respectively. PAT margin stood at 9.3%
ROCE at 31.9% was up by over 200bp YoY while Net Cash position at over Rs 9bn, as of March 2021 end, was 5.5x of same period last year

Notes: (1) Consolidated basis in INR mn (2) Revenue: Revenue from operations (3) EBITDA Margin: EBITDA / Revenue (4) EBITDA excludes other Income (5) PAT: Profit After Tax on reported basis and includes exceptional items as explained on slide 10 (6) PAT Margin: Profit after Tax for the period divided by Revenue

Polycab India Limited | Q4 & FY21 Earnings Presentation

FY21: A better year amidst disruption

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Revenue (INR mn) EBITDA (INR mn) Margin PAT (INR mn) Margin
88,300 89,265
13.1% 9.9%
12.8% 8.7%
8,859
11,668
11,276
7,656
1% YoY
3% YoY
16% YoY
FY20 FY21 FY20 FY21 FY20 FY21
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Revenue was higher than last year led by strong performance in second half of the year, offsetting severe impact of COVID-19 outbreak
Sales contribution from B2C product portfolio, on a standalone basis, grew from 32.6% in FY20 to 40.2% in FY21
EBITDA grew 3% YoY with 30bps YoY improvement in margin despite adverse operating leverage seen in first half
PBT stood at 10.6bn with 11.9% margin. PAT grew 16% YoY partly aided by few one off gains. PAT margin at 9.9 % was up by 125bp YoY

Polycab India Limited | Q4 & FY21 Earnings Presentation

Wires and Cables

Wires and Cables business grew by 35% YoY led by healthy pickup in infra and industrial project activities, improving consumer sentiment, and higher sales realisation. Polycab now commands 20-22% of share of the organised wires and cables market of India.
Business performance was broadly consistent across distribution channel as well as institutional business. Institutional business saw a decent recovery.
Within domestic distribution channel sales, Wires continued to grow faster than Cables. Housing wires sustained strong momentum.
Export's revenue in Q4 stood at Rs1.37bn or 4.5% of overall sales. YoY decline is largely on account of higher base of Dangote order (0.1bn in Q4FY21 vs 3.2bn in Q4FY20). Excluding that, exports portfolio was lower by about 7% YoY on account of delay in some large construction projects globally.
Profitability was sequentially stable in Q4. On full year basis segment margin improved by 26bps.

Notes: (1) Consolidated basis in INR mn (2) Revenue: Total income excluding finance income (3) EBIT (Earnings before Interest and Tax): includes other income and excludes finance income

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Q4FY21
Revenue (INR mn) EBIT (INR mn) Margin
15.2%
13.5% 13.4%
24,875
22,703 3,324
3,062
18,434 2,810
18% YoY 9% QoQ
35% YoY 10% QoQ
Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21
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FY21
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EBIT (INR mn) Margin
12.6%
12.3%
9,255 9,164
-1% YoY
FY20 FY21
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Revenue (INR mn)

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75,192 72,921
-3% YoY
FY20 FY21
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Polycab India Limited | Q4 & FY21 Earnings Presentation

Fast Moving Electrical Goods

FMEG business continued the robust momentum with total income growing by 89% over last year, despite cost inflation, on the back of healthy consumer demand, distribution and strong execution.
FMEG contribution to overall sales increased 290bps YoY to 11.4%. Growth was strong across categories and regions. Market share gains were prominent across the board.
Fans posted healthy growth despite stiff competition and cost push. Lighting products business nearly doubled led better demand supply alignment. Switches and Switchgears grew 2.5x while other categories also witnessed strong offtake.
Improved product mix, calibrated pricing actions and design optimisation initiatives led to healthy improvement in profitability during the quarter.
Segment EBIT margin at 7% in Q4 improved further by 108bps vs Q3.
FY21 margin at 5.5% was higher by nearly 350bps YoY

Notes: (1) Consolidated basis in INR mn (2) Revenue: Total income excluding finance income (3) EBIT (Earnings before Interest and Tax): includes other income and excludes finance income

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Q4FY21
Revenue (INR mn) EBIT (INR mn) Margin
3,468
3,055 5.9% 7.0%
0.1%
244
1,833
182
21465% 34% QoQ
89% YoY 14% QoQ
1
Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21
FY21
Revenue (INR mn) EBIT (INR mn) Margin
5.5%
10,341 2.0%
566
8,356
168
24% YoY 236% YoY
FY20 FY21 FY20 FY21
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Polycab India Limited | Q4 & FY21 Earnings Presentation

Other

Other segment which largely comprises of our EPC business
Total income was down 45% on a YoY basis. However, it increased by 25% QoQ with unlocking of markets and pickup in infra-activities
Segmental EBIT in Q4FY21 was broadly stable
On a full year basis, total income as well as EBIT nearly halved due to severe impact of pandemic and higher base of last year
Annual sustainable operating margin in this business is expected to be in high single digit over mid to long term

Notes: (1) Consolidated basis in INR mn (2) Revenue: Total income excluding finance income (3) EBIT (Earnings before Interest and Tax): includes other income and excludes finance income

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Q4FY21
Revenue (INR mn) EBIT (INR mn) Margin
1,401
18.9%
14.0%
10.5%
147 145
768
614
86
-45% YoY 25% QoQ -1% YoY 69% QoQ
Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21
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FY21 EBIT (INR mn)

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Revenue (INR mn) EBIT (INR mn) Margin
16.1%
15.2%
5,230
797
2,444 393
-53% YoY -51% YoY
FY20 FY21 FY20 FY21
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Polycab India Limited | Q4 & FY21 Earnings Presentation

Financial

Statements

Scan for Financial Results

Download Link

Scan for Audited Financial Statements

Download Link

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Consolidated Profit and Loss Statement

	Quarter	Quarter	Quarter	Quarter	Quarter	Quarter	FY21 % FY20 % Year To Date	FY21 % FY20 % Year To Date	FY21 % FY20 % Year To Date	FY21 % FY20 % Year To Date
Particulars(INR mn)	Q4FY21	%	Q3FY21	%	Q4FY20	%	FY21	%	FY20	%
Revenue from Operation	30,374	100.0%	27,988	100.0%	21,294	100.0%	89,265	100.0%	88,300	100.0%
Cost of Goods sold	22,644	74.5%	21,196	75.7%	14,769	69.4%	66,065	74.0%	63,686	72.1%
Contribution(A)	7,731	25.5%	6,792	24.3%	6,525	30.6%	23,200	26.0%	24,613	27.9%
Employee cost	997	3.3%	896	3.2%	899	4.2%	3,604	4.0%	3,657	4.1%
Other OperatingExpenses	2,521	8.3%	2,138	7.6%	2,620	12.3%	7,926	8.9%	9,606	10.9%
Total OperatingExpenses(B)	3,518	11.6%	3,034	10.8%	3,519	16.5%	11,530	12.9%	13,263	15.0%
Share ofprofit/(loss)of JVs(Net of tax) (C)	7	0.0%	5	0.0%	-58	-0.3%	-2	0.0%	-74	-0.1%
EBITDA(A)-( B)+(C)	4,220	13.9%	3,763	13.4%	2,948	13.8%	11,668	13.1%	11,276	12.8%
Other Income	274	0.9%	345	1.2%	465	2.2%	1,282	1.4%	928	1.1%
Depreciation	489	1.6%	478	1.7%	422	2.0%	1,866	2.1%	1,609	1.8%
Finance Cost	166	0.5%	88	0.3%	159	0.7%	531	0.6%	495	0.6%
Exceptional items	0	0.0%	0	0.0%	0	0.0%	97	0.1%	0	0.0%
PBT	3,838	12.6%	3,541	12.7%	2,831	13.3%	10,650	11.9%	10,100	11.4%
Income Tax	1,006	3.3%	905	3.2%	680	3.2%	1,791	2.0%	2,444	2.8%
PAT	2,832	9.3%	2,636	9.4%	2,151	10.1%	8,859	9.9%	7,656	8.7%

Polycab India Limited | Q4 & FY21 Earnings Presentation

Consolidated Balance Sheet

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Particulars (INR mn) Mar-21 Dec-20 Mar-20 Particulars (INR mn) Mar-21 Dec-20 Mar-20
Assets Equity and Liabilities
’
-
Non current Assets Shareholder s Funds
Fixed Assets 19,686 19,395 16,632 Share Capital 1,491 1,491 1,489
Other Non-current Assets 2,734 2,377 2,485 Reserves and Surplus 46,048 43,242 36,875
Total Non-current Assets 22,421 21,772 19,117 Total Shareholder’s Funds 47,539 44,733 38,364
Current Assets Minority Interest 188 171 150
-
Inventories 19,879 18,301 19,250 Non current Liabilities
Trade Receivables 14,358 11,860 14,336 Borrowings 1,037 1,163 107
Investments 6,231 10,456 400 Others - Non-current Liabilities 1,237 1,303 904
Cash and Bank Balances 5,313 5,473 2,813 Total Non-current Liabilities 2,274 2,467 1,011
Others - Current Assets 1,945 3,458 3,700 Current Liabilities
Total Current Assets 47,726 49,547 40,499 Short-term Borrowings 890 860 1,115
Total Assets 70,147 71,319 59,616 Trade Payables 13,480 17,864 13,537
Others - Current Liabilities 5,776 5,225 5,440
Total Current Liabilities 20,146 23,949 20,091
Total Equity and Liabilities 70,147 71,319 59,616
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Polycab India Limited | Q4 & FY21 Earnings Presentation

Consolidated Condensed Cash Flow Statement

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Quarter Year To Date
Particulars (INR mn) Q4FY21 Q3FY21 Q4FY20 FY21 FY20
Net Cash Flow from Operating Activities -3,081 7,713 -2,980 12,382 2,446
Net cash flow from/(used in) investing activities 3,216 -7,297 5,333 -10,121 -2,622
Net cash flow from/(used in) financing activities -242 -232 -1,195 -1,606 107
Net Increase / (Decrease) in cash and cash equivalents -107 185 1,158 656 -69
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Other key data points

	Quarter	Quarter	Quarter	Year To Date	Year To Date
Particulars(INR mn)	Q4FY21	Q3FY21	Q4FY20	FY21	FY20
Advertisement and salespromotion expense	144	372	185	683	1,087
Capital expenditure	583	658	434	1,911	2,814
Net Cash Position*	9,058	13,335	1,642	9,058	1,642
Trade acceptances*	6,538	11,314	8,136	6,538	8,136
Goods in Transit*	1,171	1,639	3,060	1,171	3,060

Notes: * as at period end

Polycab India Limited | Q4 & FY21 Earnings Presentation

Other financial metrics

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Trailing twelve months Closing
Working Capital in days FY21 FY20 FY19 FY21 FY20 FY19
Receivable Days 59 57 60 59 59 61
Inventory days 108 112 103 110 110 122
Payable Days 102 122 110 102 105 148
Net Working Capital 65 48 53 67 64 35
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Other Income(INR mn) Interest income *	Q4FY21 55	Q3FY21 36	Q4FY20 54	FY21 342	FY20 270
Gain/loss on Redemption of investment	61	59	37	167	179
Fair value of financial assets(MTM)	61	0	342	61	393
Exchange differences(net)	70	233	0	632	0
Miscellaneous income	27	17	32	80	86
Total	274	345	465	1282	928

*Interest income includes one-off item explained on slide 10

Finance Cost(INR mn)	Q4FY21	Q3FY21	Q4FY20	FY21	FY20
Interest on Bank Borrowings	31	25	15	111	64
Interest on LC,VBD and Leases	76	33	73	238	208
Other borrowingcosts	60	30	47	158	183
Foreign Exchange Gain/loss	0	0	23	25	40
Total	166	88	159	531	495

Notes: Working capital days on TTM basis is calculated using average of balance sheet number and sum of trailing 12 months P&L number. Closing basis uses period close balance sheet number and sum of trailing 12 months P&L number.

Polycab India Limited | Q4 & FY21 Earnings Presentation

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Polycab India Limited | Q4 & FY21 Earnings Presentation

Project Leap A multi year transformation journey

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Energise B2B Strengthen leadership

Future proof success Organization excellence

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Breakout growth in B2C Position to win

Accelerate Sustainability Agenda

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> Rs 200 bn sales by FY 2026

Forward looking statements

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Energising B2B
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Recalibrate business model

1.5x

of market growth in core segments

> 5%

contribution from adjacencies

2x

of market growth in emerging segments

>10%

Refine value proposition
Micro market analytics
- Business development

contribution from exports

Forward looking statements

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Position to win in B2C
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Create a winning varianting ladder

1.5x

of market growth in retail wires

Redefine brand architecture

>12%

of market growth in FMEG

“Digital-first” led execution

EBITDA margin in FMEG

~ 10%

Exploring adjacencies

contribution from Online for specific categories

Forward looking statements

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Futureproof Success
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Operating Model

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Increase business autonomy and accountability
Reoriented performance management system

Talent and Capability

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Building innovation fostering specialized capabilities
Performance oriented culture anchored on "customer first" principles

Digital & Analytics

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Leveraging digital to transform business model
Analytics integrated business decision making

Empowered Organisation + Process Excellence

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Accelerate
Sustainability
Agenda
Giving back to the society and the environment is a
priority. Our products and processes imbibe a
genuine sense of eco-consciousness. Our efforts are
focused on creating an inclusive, empowered and
resilient society, through regular social interventions.
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Renewable Energy

Waster & Water Recycling

Inclusive Growth CSR spends

Shareholding Pattern

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Promoters 68.4% Others 15.3% Alternate Investment Funds 0.7% International Finance Corporation 2.5% Foreign Institutional Investors 6.4% Domestic Mutual Funds 6.6%

Note: As on 31st March 2021.

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Notes: As on September 30 [th] 2019
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Polycab India Limited | Q4 & FY21 Earnings Presentation

Safe Harbour

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This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise, which are forward looking statements. These forward looking statements are based on certain expectations, assumptions, anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key customer relationship and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments, political instability, change in international copper, aluminum, oil prices and input costs and new or changed priorities of the trade. The Company, therefore, cannot guarantee that the forward-looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time based on subsequent developments and events. The Company does not undertake any obligation to update forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.

Polycab India Limited | Q4 & FY21 Earnings Presentation

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Thank you

Polycab India Limited CIN: L31300GJ1996PLC114183

Contact us

For investor relations: [email protected] For queries on shares & investor grievance: [email protected] Website: www.polycab.com

Polycab India Limited | Q4 & FY21 Earnings Presentation

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Polycab India Limited Earnings Release 2021

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