Polycab India Limited — Earnings Release 2021

Jan 23, 2021

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: shares@polycab.com Website: www.polycab.com

Date: 23 rd January 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 unaudited financial results of the Company for the quarter and nine months ended 31 st December 2020.

Kindly take the same on your record.

Thanking you

Yours Faithfully For Polycab India Limited

Sai Subramaniam Narayana Company Secretary and Compliance Officer Membership No.: F5221 Address: Polycab House, 771, Mogul Lane Mahim (West), Mumbai - 400 016

Q3 FY2021

Earnings Presentation

23 January 2021

Q3 FY2021 Financial Performance

Key Highlights

Top-line (Revenue)	Operating (EBITDA)	Profitability (PAT)	Net Cash Position
Q3FY21:27988mn,12%Y-o-Y32%Q-o-Q	Q3FY21:3763mn,11%Y-o-Y21%Q-o-Q	Q3FY21:2636mn,19%Y-o-Y19%Q-o-Q	Q3FY21:13335mn,108%Y-o-Y112%Q-o-Q
9MFY21:58891mn,12%Y-o-Y-	9MFY21:7448mn,11%Y-o-Y-	9MFY21:6027mn,9%Y-o-Y

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 13 (5) Net Cash Position as at period end

Q3 FY21: All round performance with solid fundamentals

• Revenue increased by 12% YoY and 32% QoQ in Q3 with healthy underlying growth across segments and rising share of B2C business
• EBITDA grew by 11% YoY with flattish margins led by leverage benefits and cost saving initiatives
• PBT and PAT was up 22% YoY and 19% YoY. PAT margin was up 59bps to 9.4%
• ROCE at 30.6% was broadly stable on YoY basis while Net Cash doubled to over Rs 13.3bn as of December end

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 13 (6) PAT Margin: Profit after Tax for the period divided by Revenue

9M FY21: Largely reflects the impact of pandemic on earlier periods

• Revenue declined by 12% YoY largely reflecting the severe impacted of COVID-19 outbreak and subsequent lockdowns in first half of FY21
• EBITDA margin improved 22bps YoY despite adverse operating leverage, aided by cost saving initiatives
• PBT stood at 6,812mn with 11.6% margin
• PAT in 9M FY21 exceed last year partly aided by few one off gains. PAT margin at 10.2% was up by 202bp YoY

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 13 (6) PAT Margin: Profit after Tax for the period divided by Revenue

Wires and Cables

• Wires and Cables business posted 6 % YoY growth despite a high base . Construction activities are progressing, albeit at a slower pace . Consumer demand remains strong with improving sentiment .
• Business from distribution channel saw healthy double -digit growth however institutional business continues to face headwinds .
• Within domestic distribution channel sales, Wires grew faster than Cables . Housing wires continued its strong momentum led by distribution expansion, pickup in renovation activity and gains from unorganized segment .
• Export revenue stood at Rs 2 . 9bn or 10 . 5 % of overall sales in Q 3 . Revenue declined by 33 % YoY due to higher base of Dangote order ( 1 . 4bn in Q 3FY21 vs 3 . 2bn in Q 3FY20 ) . Excluding that, exports portfolio posted a healthy 29 % YoY growth led by Australia, Asia and UK .

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

Fast Moving Electrical Goods

• FMEG witnessed strong traction with total income growing by 41 % YoY on the back of buoyant consumer demand, distribution expansion, better product mix and pricing actions .
• FMEG contribution to overall sales increased 215bps YoY to 10 . 8 % . Growth was broad based across categories and regions .
• Fans grew strongly gaining leadership position in few geographical clusters . Overall demand for Lighting products remained upbeat led by festive season . Switches, Switchgears and Pumps posted healthy growth .
• Profitability in Q 3 improved considerably despite higher A&P spends and input cost pressures on account of improved product mix and calibrated pricing actions .
• Segment EBIT margin stood at 5 . 9 % and 4 . 7 % in in Q 3 and 9 M FY21 , respectively .

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

Others

• Other segment which largely comprises of our EPC business was down on account of a stronger base.
• Total income and segmental EBIT in Q2FY21 declined by 53% YoY and 71% YoY, respectively.
• Annual sustainable operating margin in this business is expected to be in high single digit over mid to long term

Revenue (INR mn) EBIT (INR mn) 9MFY21 3,829 1,676 651 247 17.0% 14.7% Margin

-62% YoY -56% YoY

9MFY20 9MFY21

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

9MFY20 9MFY21

Financial Statements

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Consolidated Profit and Loss Statement

	Quarter					YearToDate
Particulars(INRmn)	Q3FY21	%	Q2FY21	%	Q3FY20	%	9MFY21	%	9MFY20	%
fromOperationRevenue	27988,	0%100	21137,	0%100	25073,	1000%	58891,	0%100	67006,	0%100
ofGoodssoldCost	21196,	757%	15128,	716%	18190,	725%	43422,	737%	48917,	730%
Contribution(A)	6792,	3%24	6009,	4%28	6883,	5%27	15469,	3%26	18089,	0%27
Employeecost	896	32%	897	2%4	915	36%	2606,	4%4	2759,	1%4
OtherOperatingExpenses	2138,	76%	1987,	94%	2577,	103%	5406,	92%	6985,	104%
Total(B)OperatingExpenses	3034,	108%	2884,	136%	3492,	139%	8012,	136%	9744,	5%14
profit/(loss)Shareofof(Netoftax)(C)JVs	5	00%	-3	00%	-2	00%	-9	00%	-16	00%
(A)-(B)+(C)EBITDA	3763,	134%	3122,	148%	3389,	135%	7448,	126%	8328,	124%
OtherIncome	345	2%1	327	5%1	3	00%	0081,	7%1	463	07%
Depreciation	478	17%	456	22%	407	16%	1377,	23%	1187,	18%
FinanceCost	88	3%0	114	5%0	86	3%0	365	6%0	336	5%0
Exceptionalitems	0	0%0	0	0%0	0	0%0	97	2%0	0	0%0
PBT	3541,	127%	2880,	136%	2900,	116%	6812,	116%	7268,	108%
IncomeTax	905	2%3	664	1%3	686	7%2	784	3%1	1764,	6%2
PAT	2636,	94%	2216,	105%	2214,	88%	6027,	102%	5055,	82%
off(INRmn)OneItems	Q3FY21	%	Q2FY21	%	Q3FY20	%	9MFY21	%	9MFY20	%
()refundIncometax-	-	-	-	-	-	-	839	14%	-	-
()refund(Otherincome)incomeInteresttaxon-	-	-	-	-	-	-	164	03%	-	-
()previouslyheldRykerGainequityinterestinon-								2%
(ExceptionalItems)	-	-	-	-	-	-	97	0	-	-
()forwritebackperiodTaxprior-	-	-	-	-	-	-	-	-		-
AdjustedPAT	2636,	94%	2216,	105%	2214,	88%	9274,	84%	5055,	82%

Consolidated Balance Sheet

(INRmn)Particulars	Dec'20	Sep'20	Dec'19
Assets
NonAssets-current
FixedAssets	19395,	19275,	16262,
OtherNonAssets-current	2377,	2219,	2520,
TotalAssetsNon-current	21772,	21494,	18782,
CurrentAssets
Inventories	18301,	20416,	16461,
TradeReceivables	11860,	10827,	12004,
Investments	10456,	5611,	4036,
CashandBankBalances	5473,	3387,	3631,
OthersCurrentAssets-	3458,	2806,	3049,
TotalCurrentAssets	49547,	43046,	39180,
TotalAssets	71319,	64540,	57962,

Particulars(INRmn)	Dec'20	Sep'20	Dec'19
andLiabilitiesEquity
Shareholder'sFunds
ShareCapital	4911,	4901,	4881,
andSurplusReserves	43242,	40647,	36083,
Shareholder'sTotalFunds	73344,	42137,	37571,
MinorityInterest	171	160	138
LiabilitiesNon-current
Borrowings	1163,	1308,	131
OthersLiabilitiesNon-current-	1303,	1344,	907
TotalLiabilitiesNon-current	2467,	2653,	1039,
LiabilitiesCurrent
ShortBorrowingsterm-	860	826	801
TradePayables	17864,	13277,	12179,
OthersLiabilitiesCurrent-	5225,	5487,	6235,
TotalLiabilitiesCurrent	23949,	19590,	19214,
TotalandLiabilitiesEquity	71319,	64540,	57962,

Consolidated Condensed Cash Flow Statement

		Quarter	YearToDate
(INRmn)Particulars	Q3FY21	Q2FY21	Q3FY20	9MFY21	9MFY20
CashFlowfromOperatingActivitiesNet	7137,	7084,	3041,	15463,	4265,
from/(usedcashflowin)investingactivitiesNet	7297-,	2876-,	3662-,	13337-,	7956-,
from/(usedflowin)financingcashNetactivities	232-	1747-,	343-	1364-,	1302,
/(Decrease)incashandcashequivalentsNetIncrease	185	85	964-	762	-1227,

Other key data points

		Year	ToDate
(INRmn)Particulars	Q3FY21	Q2FY21	Q3FY20	9MFY21	9MFY20
Advertisementandsalespromotionexpense	372	134	376	538	902
Capitalexpenditure	658	425	566	1328,	2379,
Position*CashNet	13335,	6276,	6400,	13335,	6400,
acceptances*Trade	11314,	7094,	6367,	11314,	6367,
GoodsTransit*in	1639,	2904,	653	1639,	653

Notes: * as at period end

Other financial metrics

Trailingtwelvemonths							Closing
WorkingCapitalindays	Q3FY21	Q2FY21	Q1FY21	FY20	Q3FY21		Q2FY21	Q1FY21	FY20
ReceivableDays	54	52	55	57		54	51	56	59
daysInventory	109	130	124	112		115	135	129	110
PayableDays	126	123	129	122		140	119	107	105
WorkingCapitalNet	37	60	50	48		29	68	78	64

(INRmn)OtherIncome	Q3FY21	Q2FY21	Q3FY20	9MFY21	9MFY20
*Interestincome	36	52	72	287	216
Gain/lossRedemptionofinvestmenton	59	34	30	106	142
valueoffinancial(MTM)Fairassets	0	0	-105	0	51
Exchangedifferences(net)	233	225	0	563	0
Miscellaneousincome	17	17	7	53	54
Total	345	327	3	1008	463

*Interest income includes one-off item explained on slide 13

(INRmn)FinanceCost	Q3FY21	Q2FY21	Q3FY20	9MFY21	9MFY20
BankInterestBorrowingson	29	26	9	88	53
andInterestLCVBDLeaseson,	38	48	34	162	130
Otherborrowingcosts	22	47	41	90	136
Gain/lossExchangeForeign	0	-8	2	25	17
Total	88	114	86	365	336

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.

Shareholding Pattern

Notes: As on 31st December 2020.

Safe Harbour

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.

Thank you

Polycab India Limited

CIN: L31300GJ1996PLC114183

Contact us

For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Website: www.polycab.com