Polycab PAT trebles, share zooms 4 per cent; volumes hits the roof!

PAT margin improved to 8.1 per cent. 

The stock of Polycab India is buzzing on the bourses as it jumped 4 per cent, backed by strong volume activity as its volume of the day is the highest single-day volume registered in almost the past three months.   

The stock also witnessed a triangular consolidation pattern of 27 trading sessions and has been trading above its 20-DMA. Moreover, the 20-DMA is on a rising trajectory. The daily 14-period RSI is seen rebounding after forming a base at the nine-period average thereby, supporting the positive bias.   

Meanwhile, what led to strong activity in the stock is its Q1FY23 earnings. Its revenue grew by 48 per cent YoY with broad-based growth across segments and markets. EBITDA margin improved 420 bps YoY to 11.3 per cent, led by calibrated price hikes and better operating leverage. PAT was up by 202 per cent YoY while PAT margin improved to 8.1 per cent.  

Its wires & cables business witnessed a strong growth of 48 per cent YoY. While domestic distribution-driven business sustained its strong growth momentum, institutional business improved its performance compared to the same quarter last year. Export contributed 6.7 per cent to consolidated revenue & posted healthy revenue growth of 62 per cent YoY. Distribution expansion continued with a greater thrust on digital marketing campaigns. Innovation-driven product development remains a key focus area. Its FMEG business grew by 59 per cent YoY. Lighting, switchgear, and pump continued their strong growth momentum while fans, conduit pipes & solar business posted healthy growth. However, switches saw a decline due to supply challenges.  

Meanwhile, the company remains committed to achieving Rs 20,000 crore sales by FY 2026 and making Polycab, a future-ready organisation