AI assistant
Polycab India Limited Interim / Quarterly Report 2022
61384_rns_2021-07-21_d6bb7fdb-8940-447a-a2bf-e80458f8b13f.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
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
Date: 21st July 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 ended 30 th June 2021.
Kindly take the same on your record.
Thanking you
Yours Faithfully For Polycab India Limited
Company Secretary and Compliance Officer Membership No.: A18321 Address: Polycab House, 771, Mogul Lane Mahim (West), Mumbai - 400 016
Annual General Meeting Q1 FY2022 Presentation 21 July 2021
21 July 2021
Key Highlights
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 9 (5) Annualised Returns On Capital Employed (ROCE)
Polycab India Limited | Q1 FY22 Earnings Presentation
Q1 FY22: Encouraging performance amidst challenges
- Revenue was up by 93% YoY despite challenging business environment.
- EBITDA grew by 144% YoY with 153bps improvement in margin. Cost saving initiatives were more than offset by unfavourable operating leverage and input cost volatility leading to EBITDA margin of 7.3%.
- PBT was up by 151% YoY while and PAT was down by 36% YoY on account one off gains in base quarter. PAT margin stood at 4.0%
- Net Cash position at over Rs 6.7bn, as of June 2021 end, was 3.3x 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 9 (6) PAT Margin: Profit after Tax for the period divided by Revenue
Wires and Cables
- despite challenges posed by the second wave .
- In Domestic business, Cables outperformed Wires in Q1 partly on account of relatively favorable base. Distribution as well as Institutional business was > 2 x of last year .
- Polycab India Limited | Q1 FY22 Earnings Presentation Wires and Cables revenue doubled on YoY basis ▪ While measured lockdowns with ongoing construction activities helped, sharp correction in copper prices in June temporarily impacted the trade sentiment, particularly the primary sales of retail wires .
- Exports business grew 12 % YoY. Its contribution to overall revenue improved sequentially to 6 % in Q 1FY22 vs 4 . 5 % in Q 4FY21 . The growth was driven by Asia, Australia, UK and Africa . Logistical challenges continued .
- Profitability was impacted by raw material inflation and adverse operating leverage .
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
Fast Moving Electrical Goods
- FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states .
- Distribution expansion continued with greater thrust on digital marketing campaigns . Innovation driven product development remains a key focus area .
- Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum . Premiumization trend continued .
- Lights business grew with higher emphasis on augmenting portfolio across price points .
- Switchgears saw strong growth however switches remained subdued . Solar and Conduit pipes saw healthy traction .
- Adverse operating leverage affected profitability .
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
Other
- Other segment largely comprises of our EPC business
- Total income at Rs 575mn grew by 19% YoY basis and decreased by 25% on a sequential basis due to impact of pandemic.
- Segmental EBIT was down by 6% YoY. Margin stood at 11.3%.
- 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
Financial Statements
Scan for Financial Results
Scan for Interim Financial Statements
Consolidated Profit and Loss Statement
| Quarter | ||||||
|---|---|---|---|---|---|---|
| Particulars(INRmn) | Q1FY22 | % | Q4FY21 | % | Q1FY21 | % |
| fromOperationRevenue | 18805, | 1000% | 30374, | 1000% | 9766, | 1000% |
| ofGoodssoldCost | 14399, | 766% | 22644, | 745% | 7097, | 727% |
| Contribution(A) | 4406, | 234% | 7317, | 255% | 2669, | 273% |
| Employeecost | 959 | 51% | 997 | 33% | 812 | 83% |
| OtherOperatingExpenses | 2054, | 109% | 2521, | 83% | 1282, | 131% |
| (B)TotalOperatingExpenses | 3013, | 0%16 | 3518, | 6%11 | 2094, | 4%21 |
| profit/(loss)Shareofof(Netoftax)(C)JVs | -21 | -01% | 7 | 00% | -12 | -01% |
| (A)-(B)+(C)EBITDA | 1372, | 73% | 4220, | 139% | 563 | 58% |
| OtherIncome | 253 | 13% | 274 | 09% | 336 | 34% |
| Depreciation | 521 | 8%2 | 489 | 6%1 | 443 | 5%4 |
| FinanceCost | 122 | 06% | 166 | 05% | 163 | 17% |
| Exceptionalitems | 0 | 0%0 | 0 | 0%0 | 97 | 0%1 |
| PBT | 982 | 52% | 3838, | 126% | 391 | 40% |
| IncomeTax | 229 | 2%1 | 1006, | 3%3 | -785 | 0%-8 |
| PAT | 753 | 40% | 2832, | 93% | 1176, | 120% |
| Quarter | ||||||
| (INRmn)offOneItems | Q1FY22 | % | Q4FY21 | % | Q1FY21 | % |
| ()refundIncometax- | - | - | - | - | 839 | - |
| ()refund(Otherincome)incomeInteresttaxon- | - | - | - | - | 164 | - |
| ()previouslyheldRykerGainequityinterestinon- | ||||||
| (ExceptionalItems) | - | - | - | - | 97 | - |
| ()writebackforperiodTaxprior- | - | - | - | - | - | - |
Adjusted PAT 753 4.0% 2,832 9.3% 75 0.8%
Polycab India Limited | Q1 FY22 Earnings Presentation
Consolidated Balance Sheet
| (INRmn)Particulars | Jun21- | Mar21- | Jun20- |
|---|---|---|---|
| Assets | |||
| NonAssets-current | |||
| FixedAssets | 20082, | 19686, | 19160, |
| OtherNonAssets-current | 2938, | 2734, | 2458, |
| TotalNonAssets-current | 23019, | 22421, | 21618, |
| CurrentAssets | |||
| Inventories | 26026, | 19879, | 19928, |
| TradeReceivables | 9292, | 14358, | 12044, |
| Investments | 5888, | 6231, | 3093, |
| CashandBankBalances | 3996, | 5313, | 3288, |
| OthersCurrentAssets- | 3334, | 9451, | 2317, |
| TotalCurrentAssets | 48536, | 47726, | 40671, |
| TotalAssets | 71555, | 70147, | 62289, |
| Particulars(INRmn) | Jun21- | Mar21- | Jun20- |
|---|---|---|---|
| andLiabilitiesEquity | |||
| Shareholder'sFunds | |||
| ShareCapital | 1492, | 1491, | 1489, |
| andSurplusReserves | 46803, | 46048, | 38320, |
| TotalShareholder'sFunds | 48294, | 47539, | 39810, |
| MinorityInterest | 201 | 188 | 150 |
| LiabilitiesNon-current | |||
| Borrowings | 912 | 1037, | 1464, |
| OthersLiabilitiesNon-current- | 1290, | 1237, | 1214, |
| TotalLiabilitiesNon-current | 2202, | 2274, | 2679, |
| LiabilitiesCurrent | |||
| ShortBorrowingsterm- | 2256, | 1450, | 2860, |
| TradePayables | 14578, | 13480, | 11709, |
| OthersLiabilitiesCurrent- | 0244, | 2155, | 0815, |
| TotalLiabilitiesCurrent | 20858, | 20146, | 19651, |
| TotalandLiabilitiesEquity | 71555, | 70147, | 62289, |
Consolidated Condensed Cash Flow Statement
| Quarter | |||
|---|---|---|---|
| (INRmn)Particulars | Q1FY22 | Q4FY21 | Q1FY21 |
| CashFlowfromOperatingActivitiesNet | 1584-, | 3081-, | 3042, |
| from/(usedin)cashflowinvestingactivitiesNet | 802- | 3216, | 3165-, |
| from/(usedin)cashflowfinancingactivitiesNet | 748 | 242- | 615 |
| /(Decrease)cashandcashequivalentsinNetIncrease | 1639-, | 107- | 492 |
Other key data points
| Quarter | |||
|---|---|---|---|
| Particulars(INRmn) | Q1FY22 | Q4FY21 | Q1FY21 |
| Advertisementandsalespromotionexpense | 78 | 144 | 32 |
| Capitalexpenditure | 800 | 583 | 245 |
| CashPosition*Net | 6716, | 9058, | 2057, |
| Tradeacceptances* | 9149, | 6538, | 6970, |
| Transit*Goodsin | 1972, | 1171, | 3530, |
Notes: * as at period end
Other financial metrics
| Trailingtwelvemonths | Closing | |||||
|---|---|---|---|---|---|---|
| WorkingCapitalindays | Q1FY22 | FY21 | FY20 | Q1FY22 | FY21 | FY20 |
| ReceivableDays | 40 | 59 | 57 | 35 | 59 | 59 |
| daysInventory | 114 | 108 | 112 | 129 | 110 | 110 |
| PayableDays | 87 | 102 | 122 | 91 | 102 | 105 |
| WorkingCapitalNet | 67 | 65 | 48 | 73 | 67 | 64 |
| (INRmn)OtherIncome | Q1FY22 | Q4FY21 | Q1FY21 |
|---|---|---|---|
| Interestincome | 72 | 55 | 199 |
| Gain/lossRedemptionofinvestmenton | 53 | 61 | 14 |
| valueoffinancial(MTM)Fairassets | 0 | 61 | 0 |
| Exchangedifferences(net) | 116 | 70 | 104 |
| Miscellaneousincome | 12 | 27 | 19 |
| Total | 253 | 274 | 336 |
*Interest income includes one-off item explained on slide 9
| (INRmn)FinanceCost | Q1FY22 | Q4FY21 | Q1FY21 |
|---|---|---|---|
| BankInterestBorrowingson | 25 | 31 | 26 |
| andInterestLCVBDLeaseson, | 34 | 76 | 81 |
| Otherborrowingcosts | 62 | 60 | 23 |
| Gain/lossExchangeForeign | 1 | 0 | 33 |
| Total | 122 | 166 | 163 |
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.
Note: As on 30th June 2021. DII (Domestic Institutional Investors) includes "Mutual Funds". FII (Foreign Institutional Investors) includes "Foreign Portfolio - Corp" and "Foreign Corporate Bodies". QIB/ AIF stands for "Qualified Institutional Buyer"/ "Alternative Investment Fund"
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
Contact us
For investor relations: [email protected] For queries on shares & investor grievance: [email protected] Website: www.polycab.com
