Polycab India share rose over 3 per cent today after the leading manufacturer of wires and cables reported a 167 per cent rise in Q2 net profit. The large cap stock touched an intra-day high of Rs 2,333, rising 3.13 per cent against the previous close of Rs 2262.85 on the Bombay Stock Exchange (BSE). However, the stock opened lower at Rs 2,260 today.
Polycab India's share has risen 3.86 per cent in two days. The stock trades higher than 50-day, 100-day, and 200-day moving averages but lower than 5-day and 20-day moving averages.
The stock has gained 160 per cent in one year and has risen 122 per cent since the beginning of this year.
Market cap of the firm rose to Rs 34,144 crore on the BSE.
Total 0.42 lakh shares of the firm changed hands amounting to turnover of Rs 9.76 crore on BSE.
The share hit 52-week high of Rs 2,647.60 on October 11 , 2021 and 52-week low of Rs 837 on October 23, 2020.
The firm reported a decline of 9.49 per cent in consolidated net profit at Rs 200.52 crore for the September 2021 quarter against net profit of Rs 221.55 crore during the corresponding period of 2020-21.
Revenue from operations climbed 48 per cent in Q2 at Rs 3,128.83 crore compared to Rs 2,113.68 crore in the same quarter of the previous fiscal.
However, net profit rose 167% on a quarter-on-quarter (QQ) basis from Rs 73.99 crore in the first quarter of this fiscal.
Sales climbed 66.38 per cent from Rs 1,880 crore on a QQ basis.
Amarjeet Maurya, AVP, mid-caps, Angel One said, "For 2QFY22, Polycab India's top-line grew by 48 per cent to Rs 3,129 crore on the back of strong wires and cables revenue (grew by 46 per cent on aYoY basis). Overall demand environment continued to stage a sequential recovery. Exports business grew 12 per cent YoY contributing 8 per cent to overall revenue in Q2 FY22.
On the operating front, the company reported margin contraction (down by 510bp YoY to 9.7%), primarily on account of higher raw material costs. The reported net profit de-grew by 9 per cent YoY to Rs 200 crore due to poor operating performance. Overall result was below our expectations. Currently, we have a neutral rating stock."
The company's chairman and managing director Inder T Jaisinghani said, "We had a healthy second quarter. Robust sales growth was underpinned by market share gains across categories.
Given the strengthening macroeconomic fundamentals, we see a massive opportunity to spread our wings across B2B as well as B2C categories by leveraging on our strong brand equity and increased consumers affinity for our products."
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