Cable manufacturer bags new order worth Rs 3,009.99 crore from Bharat Sanchar Nigam Ltd
The company has a dividend payout of 24 per cent.
Polycab India Limited has secured a significant contract with Bharat Sanchar Nigam Limited (BSNL) to serve as the Project Implementation Agency (PIA) for Bharat Net's middle-mile network in the Bihar Telecom Circle. This agreement, designated as Package No. 7, entails the comprehensive design, supply, construction, installation, upgradation, operation, and maintenance of the network. The total contract value is Rs 3,002.99 crores, inclusive of GST, and is segmented into a capital expenditure (Capex) of Rs 1,549.66 crores, operational expenditure (Opex) for the newly constructed network of Rs 929.79 crores, and Opex for the existing network of Rs 523.53 crore.
The contract, awarded by the domestic entity BSNL, dictates a three-year construction period followed by a ten-year maintenance phase. The maintenance costs are structured at 5.5 per cent per annum of the Capex for the initial five years and 6.5 per cent per annum for the subsequent five years. This project underscores Polycab's role in bolstering India's digital infrastructure, contributing to the Bharat Net initiative's goal of providing broadband connectivity to rural areas. The agreement is governed by general contract conditions, and the project is entirely domestic.
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Polycab India Ltd. is a prominent player in India's electrical industry, renowned for its wide range of high-quality cables, wires, and allied products. The company has been a trusted name for decades, catering to both retail and industrial consumers. In recent years, Polycab has expanded its product portfolio to include consumer electrical products like fans, switches, LED lights and solar inverters, further solidifying its position in the market.
Polycab has demonstrated a consistent track record of growth and profitability. The company's strategic focus on innovation, quality, and customer satisfaction has enabled it to maintain a strong market position. With its ambitious "Project Leap," Polycab aims to achieve a significant revenue milestone of Rs 20,000 crore by FY26. The stock’s 52-week high is Rs 7,607.15 and its 52-week low is Rs 4,557.45. The company has a market cap of over Rs 75,000 crore. The company has a dividend payout of 24 per cent. Investors should keep an eye on this cable stock.
Disclaimer: The article is for informational purposes only and not investment advice.