POLYCAB Q1 FY25 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹4,698 Cr
verified against source
Revenue YoY
21%
reported change
EBITDA
Pending
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Polycab India delivered its highest-ever Q1 revenue with 21% YoY growth, driven by steady wiring business performance and robust EPC execution. EBITDA grew 6% YoY, though margins compressed to 12.4% due to adverse business mix shift—higher contribution from lower-margin EPC (3% to 10% of revenue) and declining international business (8.9% to 5.3%). PAT stood at INR 400 crore with 8.5% margin. The 28% decline in international business reflects ongoing transition to a distributor-led model in the US, expected to take several more quarters. Working capital days extended to 64 days due to finished goods inventory buildup from commodity price volatility. Management remains confident about margin recovery as commodity prices stabilize and channel inventory normalizes. Volume growth of ~10% in domestic wires and cables signals underlying demand strength. Guidance maintained: INR 20,000 crore revenue target by FY26 appears achievable ahead of schedule, with CapEx of INR 1,000-1,100 crore on track.
Colored figures show movement against the previous available record.
Guidance to track
- Company executed INR 18,000 crore last fiscal; believes target is achievable or beatable ahead of schedule. New mid-term guidance to be released during FY25.
- Q1 CapEx was INR 280 crore; on track toward higher end of guided range to support capacity expansion for growing domestic demand.
- Above long-term guided range of 11-13%; management expects to sustain and improve margins as commodity prices stabilize and channel sales normalize.
- Business expected to maintain mid-to-high single digit contribution to consolidated revenue with sustainable operating margins in high single digits over medium to long term.
Risks flagged
- Transition to distributor-led model in the US is taking longer than initially guided (previously mentioned 3-5 quarters). Management acknowledges it will take several more quarters to stabilize with freight costs also elevated.
- Operating cash flow was negative INR 200 crore despite INR 450+ crore cash profit, driven by higher finished goods inventory and increased acceptances. Working capital at 64 days above comfortable 40-55 day range.
- Sharp volatility in copper prices (15% up mid-March to mid-April, 11% down mid-April to mid-May, 12% down mid-May to mid-June) caused channel destocking in June, impacting sales and margins. Working capital tied up in inventory.
- No further update on income tax issue since previous calls; no demand notice or order received as of call date. Market awaits resolution which could impact financials.
Key quotes
- This volatility was quite high, and that is where the distributors, they obviously would not want to miss out on the lower prices that might be available to them in the next month. That is where there was a slowdown as far as channel sales are concerned.
- We believe that there should be a pickup in the demand for wires over the course of next 2 quarters. And if that pans out, there should be an improvement in mix more towards wires going ahead.
- The past quarter was a bit weak because of a softness in one of our largest geographies. But again, one needs to take a yearly view rather than a quarterly view as far as this business is concerned.
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