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POLYCAB INDIA 2023-24 Annual Report Analysis

Tue, 25 Jun

POLYCAB INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

POLYCAB INDIA Income Statement Analysis

• Operating income during the year rose 27.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY24 as against 13.0% in FY23.
• Depreciation charges increased by 17.2% and finance costs increased by 81.3% YoY, respectively.
• Other income grew by 61.9% YoY.
• Net profit for the year grew by 40.5% YoY.
• Net profit margins during the year grew from 9.1% in FY23 to 10.0% in FY24.

POLYCAB INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	141,078	180,394	27.9%
Other income	Rs m	1,364	2,209	61.9%
Total Revenues	Rs m	142,442	182,603	28.2%
Gross profit	Rs m	18,397	24,918	35.4%
Depreciation	Rs m	2,092	2,450	17.2%
Interest	Rs m	598	1,083	81.3%
Profit before tax	Rs m	17,073	23,593	38.2%
Tax	Rs m	4,242	5,564	31.2%
Profit after tax	Rs m	12,831	18,029	40.5%
Gross profit margin	%	13.0	13.8
Effective tax rate	%	24.8	23.6
Net profit margin	%	9.1	10.0

For Investors: Our Big Prediction

POLYCAB INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 36 billion as compared to Rs 26 billion in FY23, thereby witnessing an increase of 36.5%.
• Long-term debt stood at Rs 226 million as compared to Rs 42 million during FY23, a growth of 437.2%.
• Current assets rose 26% and stood at Rs 87 billion, while fixed assets rose 33% and stood at Rs 34 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 121 billion as against Rs 94 billion during FY23, thereby witnessing a growth of 28%.

POLYCAB INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	66,056	81,168	22.9
Current Liabilities	Rs m	26,205	35,779	36.5
Long-term Debt	Rs m	42	226	437.2
Total Liabilities	Rs m	94,241	120,660	28.0
Current assets	Rs m	69,087	87,140	26.1
Fixed Assets	Rs m	25,154	33,521	33.3
Total Assets	Rs m	94,241	120,660	28.0

POLYCAB INDIA Cash Flow Statement Analysis

• POLYCAB INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -22 million net cash flows seen during FY23.

POLYCAB INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	14,275	12,962	-9.2%
Cash Flow from Investing Activities	Rs m	-12,026	-7,519	-
Cash Flow from Financing Activities	Rs m	-2,271	-3,874	-
Net Cash Flow	Rs m	-22	1,570	-

Current Valuations for POLYCAB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 120.0, an improvement from the EPS of Rs 85.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,258.8, stands at 60.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 31.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	942.0	1,200.7
TTM Earnings per share	Rs	85.7	120.0
Diluted earnings per share	Rs	85.4	120.0
Price to Cash Flow	x	29.0	31.6
TTM P/E ratio	x	33.5	60.5
Price / Book Value ratio	x	5.9	8.0
Market Cap	Rs m	388,416	646,242
Dividends per share (Unadj.)	Rs	20.0	30.0

Ratio Analysis for POLYCAB INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 2.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 22.8x during FY24, from 29.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 22.2% during FY24, from 19.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 30.3% during FY24, from 26.7% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 15.8% during FY24, from 14.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.6	2.4
Debtors’ Days	Days	32	41
Interest coverage	x	29.6	22.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.2	15.8
Return on equity	%	19.4	22.2
Return on capital employed	%	26.7	30.3

To see how POLYCAB INDIA has performed over the last 5 years, please visit here.

POLYCAB INDIA Share Price Performance

Over the last one year, POLYCAB INDIA share price has moved up from Rs 3,427.0 to Rs 7,258.8, registering a gain of Rs 3,831.8 or around 111.8%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for POLYCAB INDIA and quarterly results for POLYCAB INDIA)