Polycab India Limited Q3FY23 Earnings Summary

India’s top producer of cables, wires, and related goods such uPVC conduits, lugs, and glands is Polycab. For almost any application, we provide a variety of cables and wires. A variety of consumer electrical goods, including fans, switches, switchgear, LED lights and luminaries, solar inverters, and pumps, have also recently been introduced by Polycab.

Financial Results:

The management has stated that robust volume growth in the cables and wires industry helped it experience revenue growth despite a high base, higher commodity costs, and increased inflation.

Consolidated profit before tax increased by 48.15% to ₹ 481 crores in Q3FY23, from ₹ 324.68 crores in Q3 FY22.

However, the working capital cycle of the firm seems to have deteriorated. This can be observed with the stark differences in the current assets and liabilities in this quarter’s results.

The Net Working Capital Days have risen to 59 days in Q3FY23 from 44 days in Q2FY23. The rise in inventory days has the highest contribution to the rise in the net working capital for this quarter. However, the management has stated that they possess sufficient cash to sustain their working capital requirements.