Polycab India Limited

(formerly known as Polycab Wires 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: 21[st] July 2020

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 2020.

Kindly take the same on your record.

Thanking you

Yours Faithfully For Polycab India Limited

NARAYANA Digitally signed by NARAYANA SUBRAMANIM SUBRAMANIMAM SAI AM SAI Date: 2020.07.21 17:59:19 +05'30'

Sai Subramaniam Narayana Company Secretary and Compliance Officer Membership No.: F5221 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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Q1 FY2021 Earnings Presentation 21 July 2020

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Q1 FY2021 Financial Performance

Key Highlights

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Top-line (Revenue)

Q1 FY21: 9,766 mn -50% Y-o-Y

-54% Q-o-Q

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Operating (EBITDA)

Q1 FY21: 563 mn -75% Y-o-Y -81% Q-o-Q

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Profitability (PAT)

Q1 FY21: 1,176 mn -13% Y-o-Y

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-45% Q-o-Q

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Notes: (1) Numbers on consolidated basis (2) Revenue: Revenue from operations (3) PAT: Profit After Tax on reported basis and includes exceptional items as explained on slide 9 (4) EBITDA excludes other Income

Polycab India Limited | Q1 FY21 Earnings Presentation

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Q1 FY20: Severely impacted by outbreak of pandemic

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Revenue (INR mn) EBITDA (INR mn) Margin
13.8%
21,294 11.5%
19,513 2,948 5.8%
2,238
9,766
563
-50% YoY -54% QoQ -75% YoY -81% QoQ
Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21
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PAT (INR mn) Margin
12.0%
10.1%
6.9%
2,151
1,353
1,176
-13% YoY -45% QoQ
Q1 FY20 Q4 FY20 Q1 FY21
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Revenue declined by 50% YoY and 54% QoQ severely impacted by COVID-19 outbreak
EBITDA margins declined by 571ps YoY and 808bp QoQ due to adverse operating leverage
PBT before exceptional items at 294mn declined by 86% YoY. PBT margin at 3% declined by 758bps YoY
PAT margin at 12% was up sharply by 510bp YoY largely driven by one-off items as explained on slide 9

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

Polycab India Limited | Q1 FY21 Earnings Presentation

Wires and Cables

Total income in Q1 FY21 declined by 51% YoY due to severe impact of COVID-19 outbreak.
Domestic sales were hampered by nationwide lockdown. Domestic distribution channel sales were half of last year while institutional business was impacted severely due to delays in order finalisation.
Within domestic distribution channel sales, housing wires business saw great traction posting a strong double digit growth in month of June. However it is likely to be driven by pent up demand and pre-stocking due to price hikes. Consumer footfalls in retail still remain low especially in large metros.
Dangote Project linked sales were nil in Q1. Despite that exports posted robust growth of 116% YoY led by good traction in select developed geographies. It contributed over 10% to overall top-line vs 2% in Q1FY20.
Profitability deteriorated on account of adverse operating leverage

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

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Q1 FY21

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Revenue (INR mn) EBIT (INR mn) Margin
18,434 15.2%
11.6%
16,104
2,810 3.1%
1,862
7,935
-51% YoY -57% QoQ -87% YoY -91% QoQ 243
Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21
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Revenue (INR mn)

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Polycab India Limited | Q1 FY21 Earnings Presentation

Fast Moving Electrical Goods

Total income in Q1 FY21 declined by 43%. FMEG contribution to overall sales increased 177bp YoY to 14% in Q1 FY21. June was close to flattish however there maybe an element of pent up demand. Overall trade sentiment and consumer footfalls in retail channel remains low.
Lighting and Agro pumps saw better progress. Fans was impacted as April and May are typically key summer stocking periods.

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Q1 FY21
Revenue (INR mn) EBIT (INR mn) Margin
2,401 3.7%
0.1%
-4.0%
1,833 88
1,378
1
-43% YoY -25% QoQ
-56
Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21
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Adverse leverage led to operating loss

Others

Other segment which largely comprises of our EPC business was impacted due to stalled execution on account of lockdown.
Total income in Q1FY21 declined by 61% YoY. Operating profitability was higher.
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) Total income excludes finance income (3) EBIT (Earnings before Interest and Tax): includes other income and excludes finance income

Q1 FY21

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Revenue (INR mn) EBIT (INR mn) Margin
1,401
14.4%
1,226
9.7% 10.5%
147
119
481
69
-61% YoY -66% QoQ -42% YoY -53% QoQ
Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21
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Polycab India Limited | Q1 FY21 Earnings Presentation

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Polycab India Limited | Q1 FY21 Earnings Presentation

Financial

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Statements

Scan for Financial Results

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Download Link

Scan for Interim Financial Statements

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Download Link

Consolidated Profit and Loss Statement

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	Quarter	Quarter	Quarter	Quarter	Quarter	Quarter
Particulars(INR mn)	Q1FY21	%	Q4FY20	%	Q1FY20	%
Revenue from Operation	9,766	100.0%	21,294	100.0%	19,513	100.0%
Cost of Goods sold	7,097	72.7%	14,769	69.4%	14,278	73.2%
Contribution(A)	2,669	27.3%	6,525	30.6%	5,235	26.8%
Employee cost	812	8.3%	899	4.2%	920	4.7%
Other OperatingExpenses	1,282	13.1%	2,620	12.3%	2,079	10.7%
Total OperatingExpenses(B)	2,094	21.4%	3,519	16.5%	2,999	15.4%
Share ofprofit/(loss)of JVs(Net of tax) (C)	-12	-0.1%	-58	-0.3%	2	0.0%
EBITDA(A)-( B)+(C)	563	5.8%	2,948	13.8%	2,238	11.5%
Other Income	336	3.4%	465	2.2%	336	1.7%
Depreciation	443	4.5%	422	2.0%	385	2.0%
Finance Cost	163	1.7%	159	0.7%	123	0.6%
Exceptional items	97	1.0%	0	0.0%	0	0.0%
PBT	391	4.0%	2,831	13.3%	2,066	10.6%
Income Tax	-785	-8.0%	680	3.2%	713	3.7%
PAT	1,176	12.0%	2,151	10.1%	1,353	6.9%
One off Items(INR mn) Q1FY21 % (-)Income tax refund 839 8.6% (-)Interest on income tax refund(Other income) 164 1.7% (-) Gain on previously held equity interest in Ryker (Exceptional Items) 97 1.0% Adjusted PAT 75 0.8%
One off Items(INR mn)	Q1FY21	%
(-)Income tax refund	839	8.6%
(-)Interest on income tax refund(Other income)	164	1.7%
(-) Gain on previously held equity interest in Ryker (Exceptional Items)	97	1.0%
Adjusted PAT	75	0.8%

Polycab India Limited | Q1 FY21 Earnings Presentation

Consolidated Balance Sheet

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Particulars(INR mn)	Jun'20	Mar'20	Jun'19	Particulars(INR mn)	Jun'20	Mar'20	Jun'19
Assets				Equity and Liabilities
Non-current Assets				Shareholder’s Funds

Fixed Assets	19,160	16,632	15,562	Share Capital	1,489	1,489	1,486
Other Non-current Assets	2,458	2,485	2,536	Reserves and Surplus	38,320	36,875	31,812
Total Non-current Assets	21,618	19,117	18,097	Total Shareholder’s Funds	39,810	38,364	33,299
Current Assets				MinorityInterest	150	150	92
Inventories	19,928	19,250	18,470	Non-current Liabilities
Trade Receivables	12,044	14,336	11,420	Borrowings	1,464	107	574
Investments	3,093	400	4,062	Others - Non-current Liabilities	1,214	904	942
Cash and Bank Balances	3,288	2,813	4,547	Total Non-current Liabilities	2,679	1,011	1,517
Others - Current Assets	2,317	3,700	3,213	Current Liabilities
Total Current Assets	40,671	40,499	41,712	Short-term Borrowings	2,263	1,115	554
Total Assets	62,289	59,616	59,809	Trade Payables	11,709	13,537	14,706
				Others - Current Liabilities	5,679	5,440	9,642
				Total Current Liabilities	19,651	20,091	24,902
				Total Equity and Liabilities	62,289	59,616	59,809

Polycab India Limited | Q1 FY21 Earnings Presentation

Consolidated Cash Flow Statement

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Quarter
Particulars (INR mn) Q1FY21 Q4FY20 Q1FY20
Net Cash Flow from Operating Activities 3,042 -2,980 3,663
Net cash flow from/(used in) investing activities -3,165 5,333 -5,762
Net cash flow from/(used in) financing activities 615 -1,195 2,801
Net Increase / (Decrease) in cash and cash equivalents 492 1,158 702
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Other data points

	Quarter	Quarter	Quarter
Particulars(INR mn)	Q1FY21	Q4FY20	Q1FY20
Advertisement and salespromotion expense	32	185	386
Capital expenditure	245	512	1,079
Net Cash Position*	2,057	1,642	6,676
Trade acceptances*	6,970	8,136	9,233
Goods in Transit*	3,530	3,060	4,540

Notes: * as at period end

Polycab India Limited | Q1 FY21 Earnings Presentation

Other financial metrics

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Trailing twelve months Closing
Working Capital in days Q1FY21 FY20 FY19 Q1FY21 FY20 FY19
Receivable Days 54 57 60 56 59 61
Inventory days 124 112 103 129 110 122
Payable Days 129 122 110 107 105 148
Net Working Capital 49 48 53 78 64 35
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Other Income (INR mn) Q1FY21 Q4FY20 Q1FY20
Interest income * 199 54 67
Gain/loss on Redemption of investment 14 37 52
Fair value of financial assets (MTM) 0 342 155
Exchange differences (net) 104 0 44
Miscellaneous income 19 32 18
Total 336 465 336
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*Interest income includes one-off item explained on slide 9

Finance Cost (INR mn)	Q1FY21	Q4FY20	Q1FY20
Interest on Borrowings	102	63	73
Interest on Purchase/Sales/Discounting	7	25	7
Bank Charges	21	46	40
Foreign Exchange Gain/loss	33	25	3
Total	163	159	123

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 | Q1 FY21 Earnings Presentation

Shareholding Pattern

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Promoters 68.6%
Others 14.6%
International Finance Corporation 9.5%
Foreign Portfolio Investors 4.5%
Domestic Mutual Funds 2.8%
Notes: As on 30 June 2020. Promoter holding dilution in % terms is on account of issuance of new shares under ESOP scheme.
Notes: As on September 30 [th] 2019
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Polycab India Limited | Q1 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 | Q1 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 | Q1 FY21 Earnings Presentation

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Polycab India Limited Investor Presentation 2020

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