Latest news with #FMEG
Time of India
09-05-2025
- Business
- Time of India
Hold Polycab India, target price Rs 6,150: ICICI Securities
Polycab India's key products/revenue segments include Cables & Wires, Fast-Moving Electrical Goods (FMEG), Income from Eng. Construction Contracts, Grants, Export Incentives for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 7033.87 crore, up 33.95 % from last quarter Total Income of Rs 5251.07 crore and up 24.59% from last year same quarter Total Income of Rs 5645.73 crore. The company has reported net profit after tax of Rs 734.36 crore in latest quarter. The company's top management includes T Jaisinghani, Sharma, Banerjee, Mr.T P Ostwal, Mr.R S Sharma, Tongia, Talati, R Jaisinghani, A Jaisinghani, Agarwal. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 15 crore shares outstanding. Live Events Investment Rationale Polycab reported strong numbers in Q4FY25. Highlights were: (1) FMEG portfolio reported profit at EBIT level, after posting losses for past 10 quarters. Reduction in ad-spend, as % of net sales, and operating leverage led to higher EBIT margins. (2) With increase in copper prices as well as normalisation of trade inventory in wires in Q4FY25 after reduction in trade inventory in Q3FY25 led to strong growth in cables and wires segment. However, deferment of orders led to 24% revenue decline in international business. (3) The company has also gained market share of ~100bps in domestic organised cables and wiresindustry. With competitive intensity likely to inch up in cables and wires with the entry of Ultratech and Adani in FY27-28, ICICI Securities models Polycab to focus on market share gains even if there is a margin impact in the near term (DCF accretive). They trimmed FY26E earnings by 3.2% and retain HOLD with a DCF-based revised target price of Rs 6,150 (implied target P/E of 32x FY27E EPS). Promoter/FII Holdings Promoters held 63.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 11.11 per cent, DIIs 10.79 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities has a Hold call on Polycab India with a target price of Rs 6150. The current market price of Polycab India is Rs 5905.05. Polycab India, incorporated in 1996, is a Mid Cap company with a market cap of Rs 88638.46 crore, operating in the Consumer Durables India's key products/revenue segments include Cables & Wires, Fast-Moving Electrical Goods (FMEG), Income from Eng. Construction Contracts, Grants, Export Incentives for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 7033.87 crore, up 33.95 % from last quarter Total Income of Rs 5251.07 crore and up 24.59% from last year same quarter Total Income of Rs 5645.73 crore. The company has reported net profit after tax of Rs 734.36 crore in latest company's top management includes T Jaisinghani, Sharma, Banerjee, Mr.T P Ostwal, Mr.R S Sharma, Tongia, Talati, R Jaisinghani, A Jaisinghani, Agarwal. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 15 crore shares reported strong numbers in Q4FY25. Highlights were: (1) FMEG portfolio reported profit at EBIT level, after posting losses for past 10 quarters. Reduction in ad-spend, as % of net sales, and operating leverage led to higher EBIT margins. (2) With increase in copper prices as well as normalisation of trade inventory in wires in Q4FY25 after reduction in trade inventory in Q3FY25 led to strong growth in cables and wires segment. However, deferment of orders led to 24% revenue decline in international business. (3) The company has also gained market share of ~100bps in domestic organised cables and wiresindustry. With competitive intensity likely to inch up in cables and wires with the entry of Ultratech and Adani in FY27-28, ICICI Securities models Polycab to focus on market share gains even if there is a margin impact in the near term (DCF accretive). They trimmed FY26E earnings by 3.2% and retain HOLD with a DCF-based revised target price of Rs 6,150 (implied target P/E of 32x FY27E EPS).Promoters held 63.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 11.11 per cent, DIIs 10.79 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Business Standard
06-05-2025
- Business
- Business Standard
Polycab India spurts as Q4 PAT jumps 33% YoY to Rs 734 cr; declares dividend of Rs 35/sh
Polycab India jumped 4.21% to Rs 6,042.95 after the company's consolidated net profit spiked 32.68% to Rs 734.40 crore on a 24.92% rise in revenue from operations to Rs 6,985.8 crore in Q4 FY25 over Q4 FY24. The growth in revenue was driven by robust growth across business segments. Profit before tax was at Rs 960.60 crore in Q4 FY25, reflecting a growth of 32.44% from Rs 725.30 crore reported in Q4 FY24. EBITDA jumped 34.65% YoY to Rs 1,025.4 crore in the quarter ended 31 March 2025. EBITDA margin improved to 14.7% in Q4 FY25 as against 13.6% in Q4 FY24, driven by a profitable turnaround in the FMEG business and stronger margins in the EPC segment off a lower base. On the segmental front, wires & cables business revenue grew by 22.34% YoY to Rs 6,019.1 crore in Q4 FY25, driven by sustained momentum across key sectors. Key contributors included increased government spending, improved project execution, continued strength in real estate, and an inflationary trend in commodity prices. The domestic business grew by 27% YoY, with cables growth once again outpacing wires. Both channel and institutional business showed healthy traction. The international business however experienced a temporary decline due to the rollover of a large order into the next quarter. EBIT margins for the quarter expanded by ~140 bps QoQ to 15.1%, driven by operating leverage and a favourable product mix, although partially offset by the lower contribution from the international business. The Fast-Moving Electrical Goods (FMEG) business registered a strong 33% YoY growth, with all product categories maintaining a robust growth trajectory. The fans segment delivered impressive growth despite a delayed summer, reflecting the effectiveness of our strategic initiatives and continued focus on premiumization. The lights and luminaires business sustained its momentum from the previous quarter, achieving strong volume and value growth, even amidst ongoing pricing deflation. Switchgears, conduit pipes & fittings, and switches also posted healthy growth, supported by steady demand from the real estate sector. Significantly, the business achieved break-even in Q4FY25 its first profitable quarter after ten successive quarters of strategic investments in talent, product innovation, and brand building. This milestone is a testament to our long-term vision and the effectiveness of its business strategy. The EPC business registered a strong growth of 47% YoY during the quarter to Rs 602.80 crore, on the back of robust execution of the RDSS order book. As of 31 March 2025, Polycab India's net cash position stood at Rs 2457.2 crore, up 14.77% from Rs 2,140.8 crore in the previous quarter. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: We have concluded FY25 on a historic high, delivering record revenues for both the fourth quarter and the full year, driven by strong, broad-based growth across business segments. Exceeding our Project Leap FY26 revenue goal a year ahead of committed schedule is a testament to our focused execution, market leadership, and strategic resilience. Our core Wires and Cables business maintained its strong momentum, the FMEG business grew ahead of industry as well as achieved quarterly profitability, and the EPC business scaled new heights, all contributing to making Polycab the largest Company by revenue in the Indian electrical industry, as well as reaffirming our position as the most profitable Company for the third consecutive year. With a sharpened strategic focus, robust fundamentals, and a culture of innovation and excellence, we are poised to build on this momentum and shape the next phase of Polycabs growth journey, under Project Spring, with confidence and purpose. Meanwhile, the company recommended dividend of Rs 35/- per equity share for the financial year 2024-25 subject to approval of members at the ensuing annual general meeting. Polycab India is the largest manufacturer of wires and cables in India and a fast-growing player in the Fast Moving Electrical Goods (FMEG) space. The Group is also in the business of engineering, procurement, and construction (EPC) projects.
Mint
23-04-2025
- Business
- Mint
Why did Havells India share price fall 5% despite healthy Q4 results? Key reasons explained
Havells India share price today: Havells India, one of the country's leading Fast-Moving Electrical Goods (FMEG) companies, saw its share price tumble 5% in Wednesday's trade, April 23, to an intraday low of ₹ 1,583.40 apiece. Despite the company's Q4 and FY25 performance exceeding Street estimates, cautious commentary from the management dampened investor sentiment. The company stated that demand for cooling products such as air conditioners (ACs) is expected to be weak in the ongoing quarter due to a mild start to summer, particularly in the South. This outlook prompted brokerage firms to trim their EPS estimates and accordingly lower their target prices. Domestic brokerage firm Kotak Institutional Equities reduced its EPS estimates by 3–4% and revised the target price down to ₹ 1,400 apiece while maintaining its 'Sell' call on the stock. Equirus Securities also lowered its target price to ₹ 1,967 from the earlier ₹ 2,057, citing near-term challenges. However, the brokerage retained its 'Buy' rating on the stock. According to Equirus' channel checks, there has been some slowdown in RAC (room air conditioner) demand—particularly in South India—a trend echoed by management, who cited weaker demand for summer products during March and April due to milder weather conditions. Continued pressure on secondary sales could weigh on the company's Q1 performance, especially given the higher base. That said, Lloyd will continue investing in growth pillars. Also, the near-to-mid-term RAC industry outlook remains intact. The brokerage models an FY25–FY28E Lloyd revenue CAGR of 14%. Moreover, with scale benefits and cost savings, margins are expected to improve to 4.5% in FY26E and 5.5% in FY27E. Despite concerns over potential supply chain disruptions for RAC components, Havells remains optimistic due to the delayed onset of summer and muted demand in recent months. Recent media reports suggest that the government may relax BIS norms for sub-2-tonne AC components; if implemented, this could provide significant relief for the industry, as over 90% of volumes fall in this category, the brokerage added. Management noted that consumer sentiment remains impacted by inflation. Lloyd benefitted in Q4FY25 due to positive channel sentiment at the beginning of the quarter and a relatively soft base (6% growth in Q4FY24). Secondary demand for RACs declined in March and April due to a mild start to summer, especially in the South, which could weigh on primary sales in Q1, depending on how the season unfolds in the North. However, demand remains strong in the West and Central regions, where the ramp-up of the Tumkur plant is expected to support cable growth. The company reported a 15.73% year-on-year (YoY) increase in consolidated net profit to ₹ 517 crore for the March quarter. Revenue from operations rose 20.24% to ₹ 6,543.56 crore in Q4FY25, compared with ₹ 5,442.02 crore in the corresponding period last fiscal. For the full financial year (FY25), consolidated net profit rose 15.7% to ₹ 1,470.24 crore from ₹ 1,270.76 crore in FY24, while revenue from operations increased 17.21% to ₹ 22,081.33 crore from ₹ 18,838.97 crore a year earlier. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 23 Apr 2025, 11:18 AM IST
