{"id":126610,"date":"2022-01-24T10:02:56","date_gmt":"2022-01-24T15:02:56","guid":{"rendered":"https:\/\/44.250.171.167\/?p=126610"},"modified":"2022-01-26T12:37:06","modified_gmt":"2022-01-26T17:37:06","slug":"polycab-india-ltd-q3-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/polycab-india-ltd-q3-fy22-earnings-conference-call-insights\/","title":{"rendered":"Polycab India Ltd Q3 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Polycab India Ltd Q3 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/77ZcKW9mGO0?start=798&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from Polycab India Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/POLYCAB\/\">POLYCAB<\/a>) Q3 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>POLYCAB recorded the highest quarterly topline in the history of the company for the second consecutive quarter.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Ravi Swaminathan from Spark Capital asked about the volume\/value mix. Gandharv Tongia CFO said that there is significant amount of growth in value. On the volume side, there was a slight increase, mainly from businesses like HDC and LDC. On FMEG also, the company added that the growth was across all product categories, barring fans.<\/li>\n<\/ul>\n<ul>\n<li>Ravi Swaminathan from Spark Capital also queried if volume growth might have been mid-single or high single digit. Gandharv Tongia CFO commented that most of the growth is due to value and only part of it is due to volume. Gandharv added that within this, HDC is leading the pack followed by cable and wire.<\/li>\n<\/ul>\n<ul>\n<li>On a question asked by Ravi Swaminathan from Spark Capital about EBITDA margins, and what kind of range can be seen in FY23, \u00a0Gandharv Tongia CFO answered that historically in cable and wire POLYCAB has hovered between 11-13% margins on a sustainable basis. In 3Q, the EBITDA margin improved compared to 2Q. The company added that the company expects FY23 to be better than the current quarter.<\/li>\n<\/ul>\n<ul>\n<li>Atul Tiwari of Citigroup asked if commodity price hikes have already been passed on to customers and going forward any price hike would trickle down to the margin number with a normal 11-12% kind of margin. Gandharv Tongia CFO answered that in company\u2019s business the input cost is not constant and undergoes changes many times in a year. Therefore, the company would be passing on the price increases to customer as well as improving margins.<\/li>\n<\/ul>\n<ul>\n<li>Atul Tiwari of Citigroup also enquired about the numbers of dealers and distributors currently on the cable and wire side and FMEG side. \u00a0Gandharv Tongia CFO answered that the company has around 4,100 dealers and distributors and 50% of them are on FMEG side. In cable and wire, POLYCAB would be around 70% of its topline. In FMEG, this year it has improved well and the company is just shy of 50%.<\/li>\n<\/ul>\n<ul>\n<li>Aditya Bagul with Tata Mutual Fund asked about the outlook of B2B business and what\u2019s driving its sharp recovery. Gandharv Tongia CFO commented that predominantly the improvement is in demand, emanating from private capex. Institutional business recorded a 150% growth, while on the dealer side, the growth is broad based and is coming from most of the geographies.<\/li>\n<\/ul>\n<ul>\n<li>Charanjit Singh DSP Mutual Fund asked about the quantum of price hike in cables and wires and on a nine-month perspective, volume growth in cables and wires. Gandharv Tongia CFO said that most of the increase is coming from value and some from increased volume. On price hike, in 3Q there was improvement of 70 bps; raw material cost and product basket increased by mid-single digit. POLYCAB added that it will continue to take pricing action to offset the increase in input cost going forward.<\/li>\n<\/ul>\n<ul>\n<li>Satwik Jain of Generational Capital\u00a0 asked about the FMEG business being in the investment mode and what\u2019s the internal return on capital employed targets. Gandharv Tongia CFO answered that the objective is to improve profitability for all business and have better capital allocation for FMEG or B2C businesses. For better profitability, the company is targeting to get to around 12% of margin by FY26. And on capital allocation, POLYCAB is gradually increasing its utilization of factories in FMEG and cable and wires.<\/li>\n<\/ul>\n<ul>\n<li>Anirudh Joshi from ICICI securities enquired that in FMEG, apart from fans and geysers what products the company is focusing on. Gandharv Tongia CFO commented that the company is also focusing on light and luminaires, switches and switchgear, conduits pipes, agro and some adjacencies also are being explored. However Gandharv added that there is nothing on the kitchen side right now.<\/li>\n<\/ul>\n<ul>\n<li>Anirudh Joshi from ICICI Securities also asked about the KRAs of the newly joined professionals in the company and on what brands they would be working on. Gandharv Tongia CFO answered that the new professionals as well as the current leadership team is totally focused on only one agenda which is Project Leap. The objective is to achieve INR20,000 crore of topline and improvement in profitability.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Polycab India Ltd (POLYCAB) Q3 FY22 Earnings Concall Management Update: POLYCAB recorded the highest quarterly topline in the history of the company for the second consecutive quarter. Q&amp;A Highlights: Ravi Swaminathan from Spark Capital asked about the volume\/value mix. Gandharv Tongia CFO said that there is significant amount of growth in value. [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[8592,9478],"class_list":["post-126610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-cable","tag-industirals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":129474,"url":"https:\/\/alphastreet.com\/india\/polycab-india-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":126610,"position":0},"title":"Polycab India Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 12, 2022","format":false,"excerpt":"https:\/\/youtu.be\/kTiL7aOjN6Q Key highlights from Polycab India Limited (POLYCAB) Q4 FY22 Earnings Concall Management Update: POLYCAB stated its overall top-line surpassed INR120 billion clocking 17% CAGAR in the last 5 years. And export is inching towards becoming a sustainable INR10 billion business. POLYCAB invested about INR2 billion to acquire around 55,000\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":129506,"url":"https:\/\/alphastreet.com\/india\/polycab-india-limited-polycab-q4-fy22-earnings-concall-transcript\/","url_meta":{"origin":126610,"position":1},"title":"POLYCAB INDIA LIMITED (POLYCAB) Q4 FY22 Earnings Concall Transcript","author":"Staff Correspondent","date":"May 13, 2022","format":false,"excerpt":"POLYCAB INDIA LIMITED (NSE: POLYCAB) Q4 FY22 Earnings Concall dated May. 11, 2022 Corporate Participants: Chintan Jajal\u00a0--\u00a0Head of Investor Relations Gandharv Tongia\u00a0--\u00a0Chief Financial Officer Inder T. Jaisinghani\u00a0--\u00a0Chairman, Managing Director Analysts: Naval Seth\u00a0--\u00a0Emkay Global Financial Services Ltd. -- Analyst Ravi Swaminathan\u00a0--\u00a0Spark Capital Advisors Limited -- Analyst Sonali Salgaonkar\u00a0--\u00a0Jefferies -- Analyst Renu\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"stock earnings conference call transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":118269,"url":"https:\/\/alphastreet.com\/india\/polycab-india-ltd-polycab-q4-fy21-earnings-concall-transcript\/","url_meta":{"origin":126610,"position":2},"title":"Polycab India Ltd (POLYCAB) Q4 FY21 Earnings Concall Transcript","author":"Sahil Anand","date":"June 7, 2021","format":false,"excerpt":"Polycab India Ltd (NSE:POLYCAB) Q4 FY21 earnings concall dated Jun. 07, 2021. Corporate Participants: Gandharv Tongia -- Chief Financial Officer Inder T. Jaisinghani -- Chairman and Managing Director Analysts: Ravi Swaminathan -- Spark Capital -- Analyst Vikas Mistri -- Moonford Ventures -- Analyst Pritesh Chheda -- Lucky Investment Managers --\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"stock earnings conference call transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":124828,"url":"https:\/\/alphastreet.com\/india\/polycab-ltd-polycab-q1-fy22-earnings-concall\/","url_meta":{"origin":126610,"position":3},"title":"Polycab Ltd (POLYCAB) Q1 FY22 Earnings Concall","author":"Sahil_Anand","date":"July 22, 2021","format":false,"excerpt":"Polycab Ltd (NSE:POLYCAB) Q1 FY22 Earnings Concall dated July. 22, 2021","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/09\/Polycab-India-Ltd-Q1-FY22-Earnings-Concall.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/09\/Polycab-India-Ltd-Q1-FY22-Earnings-Concall.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/09\/Polycab-India-Ltd-Q1-FY22-Earnings-Concall.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/09\/Polycab-India-Ltd-Q1-FY22-Earnings-Concall.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/09\/Polycab-India-Ltd-Q1-FY22-Earnings-Concall.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/09\/Polycab-India-Ltd-Q1-FY22-Earnings-Concall.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":138892,"url":"https:\/\/alphastreet.com\/india\/polycab-india-ltd-542679-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":126610,"position":4},"title":"Polycab India Ltd (542679) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"January 20, 2023","format":false,"excerpt":"Polycab India Ltd (NSE: 542679) Q3 FY23 Earnings Concall dated Jan. 20, 2023 Corporate Participants: Chirayu Upadhyaya\u00a0--\u00a0Head, Investor Relations Gandharv Tongia\u00a0--\u00a0Chief Financial Officer Inder T. Jaisinghani\u00a0--\u00a0Chairman and Managing Director Analysts: Atul Tiwari\u00a0--\u00a0Citigroup -- Analyst Achal Lohade\u00a0--\u00a0JM Financial Limited -- Analyst Ravi Swaminathan\u00a0--\u00a0Spark Capital, -- Analyst Rahul Agarwal\u00a0--\u00a0-- Analyst Shrinidhi Karlekar\u00a0--\u00a0HSBC\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":136505,"url":"https:\/\/alphastreet.com\/india\/polycab-india-ltd-542679-q2-fy23-earnings-concall-transcript\/","url_meta":{"origin":126610,"position":5},"title":"Polycab India Ltd (542679) Q2 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"October 19, 2022","format":false,"excerpt":"Polycab India Ltd (NSE: 542679) Q2 FY23 Earnings Concall dated Oct. 19, 2022 Corporate Participants: Gandharv Tongia\u00a0--\u00a0Chief Financial Officer Inder T. Jaisinghani\u00a0--\u00a0Chairman and Managing Director Analysts: Ravi Swaminathan\u00a0--\u00a0Spark Capital -- Analyst Atul Tiwari\u00a0--\u00a0Citigroup -- Analyst Sonali Salgaonkar\u00a0--\u00a0Jefferies India -- Analyst Aditya Bhartia\u00a0--\u00a0Investec -- Analyst Nitin Arora\u00a0--\u00a0Axis Mutual Fund -- Analyst\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/126610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=126610"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/126610\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=126610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=126610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=126610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}