BENGALURU (Reuters) – Polycab India reported a 28.5% jump in its fourth-quarter profit on Friday, driven by strong demand for its wires and cables, its largest segment.
Consolidated net profit rose to 5.46 billion rupees ($65.4 million) for the three months ended March 31 from 4.25 billion rupees a year earlier.
Cables and wires companies have benefited from a demand surge from the real estate and infrastructure sectors, further aided by the government as it tries to boost the economy.
Revenue rose by 29% to 55.92 billion rupees, driven primarily by growth in its core wires and cables segment, which posted a 19.3% rise.
The segment accounts for about 88% of the company’s product mix.
Its fast-moving electric goods (FMEG) unit that sells electrical appliances rose 17.3% year-on-year, benefiting from a seasonally strong demand quarter.
Larger rival Havells India also posted a higher quarterly profit last week on strong demand for room air conditioners and fans as consumers prepared for warmer weather.
Polycab India’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 26% year-on-year on improved operating efficiency and reduced advertising and promotion spending.
Shares rose as much as 3.4% to a record high of 5,998.80 rupees after the results.
($1 = 83.4875 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Eileen Soreng)
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