Polycab's Q2FY24 financial performance review
Polycab has released its financial results for the second quarter ending September 30, 2024 (Q2FY24). In this article, we dissect the financial metrics, including revenue, expenses, net profit, and margin, to provide a basic overview of Polycab's financial performance.
| Particulars | Q2FY23 | (Y-o-Y) % change | Q1FY24 | (Q-o-Q) % change | Q2FY24 |
| Revenue (₹crs.) | 3332.3 | 26.57 | 3889.3 | 8.44 | 4217.6 |
| Expenses (₹crs.) | 2970.8 | 24.4 | 3422.8 | 7.98 | 3695.8 |
| Net Profit (₹crs.) | 275.6 | 58.49 | 390 | 12 | 436.8 |
| Margin (%) | 8.27 | 2.09 | 10.03 | 0.33 | 10.36 |
Revenue Growth: Polycab's revenue for Q2FY24 surged to ₹4,217.6 crores, marking an impressive year-on-year (YoY) growth of 26.57%. The company also witnessed a significant increase of 8.44% when compared to the preceding quarter's revenue of ₹3,889.3 crores. This strong revenue growth showcases Polycab's resilience and its ability to adapt to market dynamics.
Expense Management: In Q2FY24, Polycab recorded expenses of ₹3,695.8 crores, reflecting a YoY increase of 24.4% compared to ₹2,970.8 crores in Q2FY23. Additionally, expenses increased by 7.98% when compared to the previous quarter, where they stood at ₹3,422.8 crores. Polycab's ability to manage expenses in a growing market is commendable.
Net Profit Growth: Polycab demonstrated robust net profit growth in Q2FY24. The company's net profit for the quarter reached ₹436.8 crores, representing a significant YoY increase of 58.49%. Even when compared to the previous quarter's net profit of ₹390 crores, Polycab maintained steady growth with a 12% increase. This exceptional performance indicates effective financial management and operational excellence.
Margin Expansion: Margin analysis is pivotal in assessing a company's profitability. In Q2FY24, Polycab achieved a remarkable margin of 10.36%, signifying a positive change from both the previous quarter's margin of 10.03% and the YoY margin of 8.27%. This consistent margin expansion underscores Polycab's efficient cost control and ability to generate profits amidst changing market conditions.
Polycab's financial performance in Q2FY24 exemplifies the company's robust revenue growth, effective expense management, and steady net profit increase. Additionally, the expanding margin reflects the company's commitment to sustaining profitability.