The shares of the leading cables and wires manufacturer have fallen up to 5 percent after the company’s promoter is likely to offload a 2.04 percent stake in the company.
With a market capitalization of Rs 1.01 lakh crore, the shares of Polycab India Ltd were trading in red at Rs 6,771 per share, decreasing around 3.22 percent as compared to the previous closing price of Rs 6,989.85 apiece.
Matter explanation:-
As of March 2024, the promoter group of Polycab India Ltd owns 9.80 crore equity shares or 65.24 percent of the company. However, according to sources, the promoter group and family members of electrical solutions provider Polycab India are planning to sell a 2.04 percent stake via a block deal for up to $257 million (at the upper end of the price range).
Financial analysis:-
Looking forward to Polycab India Ltd’s financial performance, revenue magnified by 29 percent from Rs 4,324 crore in Q4FY23 to Rs 5,592 crore in Q4FY24. During the same period, net profit soared by 29 percent, from Rs 429 crore to Rs 553 crore.
Revenue segregation:-
Polycab India Limited earned 88% of its sales from wires and cables, 7% from fast-moving electrical items, and 5% from others. It holds a considerable market share of 25-26% in the domestically organized C&W industry.
Manufacturing facilities:-
Polycab India operates 25 manufacturing facilities, including joint ventures with Techno and Trafigura, across Gujarat, Maharashtra, Uttarakhand, Daman, and Diu, ensuring a complete supply chain from raw materials to end-products.
Four of these 25 facilities specifically produce Fast-Moving Electrical Goods (FMEG), highlighting the company’s diverse manufacturing capabilities within India’s key industrial regions.
Company Overview:-
Polycab India Limited manufactures wires and cables. The Company specializes in fast-moving electrical items. The company operates in three segments: wires and cables, FMEG, and others. The Wire and Cable section is involved in the production and sale of wire and cable.
Written by:- Abhishek Singh
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