Wires, cables and electrical goods maker Polycab India posted a 27.3 percent year-on-year (YoY) drop in its March quarter (Q4) consolidated net profit at Rs 137.2 crore on account of a drop in EBITDA margin. Commodity prices and rupee movement versus the dollar also impacted profitability
R Ramakrishnan, CEO, Polycab, said higher-than-normal EBITDA in some of the past quarters is not sustainable, adding: "Going forward, EBITDA margin will be maintained between 11 percent and 13 percent."
Revenue increased by 16 percent YoY in Q4 to Rs 2,444.8 crore. Among segments, wires and cables grew 13 percent at Rs 2,121.6 crore and EPC 141 percent at Rs 218.3 crore.
The board has recommended a final dividend of Rs 3 per equity share.
Commenting on the company's performance in FY19, Inder Jaisinghani, Chairman and Managing Director, Polycab India, said it has been a year of record performance with all business segments performing well.
He added that net profit increased 40 percent YoY to Rs 500 crore in FY19. "Gross debt fell 66 percent to Rs 272.4 crore and capital expenditure was up 55 percent to Rs 279 crore."
On the company's capex plans, Ramakrishnan said Polycab will incur Rs 175 -200 crore annually. "Of this, 75 percent will be allocated for the wires and cables business and the balance will go towards the fast moving electrical goods space."
On an annual basis, the wires and cables business grew 11 percent YoY to Rs 6,929.5 crore and the FMEG business grew 33 percent to Rs 643.3 crore.
Polycab listed on the stock exchanges in April this year at an 18 percent premium over its issue price of Rs 538. It is currently trading in the Rs 625-655 range.
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