- 12 May 2023
- ICICIdirect Research
Polycab India Q4 Results 2023: Strong performance led by wires & cables segment
Polycab India Ltd | CMP: 6628 | Market Cap: 99,577.92
Strong performance led by wires & cables segment
Q4FY23 Earnings Summary
View: Polycab has reported a healthy performance in Q4FY23 led by its wires & cables business. We believe, growth in the cables and wires is on account of healthy growth in domestic distribution business as well as revival in exports. However, the company's FMEG business has remained under pressure mainly due to subdued demand of fans amid heavy channel inventory stocking done ahead of the transition to the new BEE norms. On the margin front, we believe, expansion in margins is on the back of softening raw material costs, judicious price revisions and favourable product mix in the wire & cable segment. While we maintain our positive stance on the stock, we await management commentary on future demand outlook and recovery in FMEG business.
Impact: Positive