What were the highlights of the Q3 results announced by Polycab?

Polycab has emerged as a major played in the electrical goods segment. For the Dec-20 quarter, Polycab reported 19.07% growth in PAT at Rs.264 crore on the strength of cost cuts. For the third quarter, Polycab also reported 11.63% growth in Dec-20 quarter revenues at Rs.2,799 crore on a yoy basis.

In terms of sales revenues, Polycab saw volume growth across the wires & cables segment and FMEG products segment. This led to better fixed cost absorption and combined with the cost cuts initiated, the operating profits were up 9.9% at Rs.328 crore.. However, due to a higher revenue growth base, the OPM marginally fell from 11.90% to 11.72% yoy.

However, the company reported an improvement in PAT margins from 8.83% in Dec-19 to 9.42% in Dec-20 quarter. The company has seen greenshoots of recovery in the building and construction activity and that could drive numbers in the quarters to come.