Besides, the bottom-line got an additional boost on the back of lower tax rates due to re-measuring of deferred tax assets/liabilities. The company’s revenue during the quarter grew 24 per cent year-on-year (y-o-y) to Rs 2,242 crore driven by strong growth across segments. The FMEG products of Polycab largely include switchgears, fans, lightings & luminaires and solar pumps.
Going forward, the management said it remain committed to delivering consistent and profitable growth.
“The FMEG segment is expected to maintain strong revenue growth trajectory, led by leveraging distribution strength and launch of new products within existing categories. Rising cash flows with each passing year may lead to upward revision in capital expenditure along with probability of higher shareholder returns through dividends”, analysts at Sharekhan said in a note.
At 11:00 am, the stock was trading 4 per cent higher at Rs 1,031 on the BSE, as compared to a 0.32 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 500,500 shares changing hands on the NSE and BSE till the time of writing of this report.