Anand Rathi: Polycab India’s Faster Recovery Led To Strong Earnings Upgrade
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Anand Rathi Report
Faster traction in the high margin business to consumer segments (wires/fast moving electrical goods) and exports, premiumisation and cost-saving measures led to Polycab India Ltd.’s strong Q2 performance.
Controlled working capital and a healthy net-cash position (approximately Rs 6.3 billion) were other positives.
On the faster recovery, we now expect 8%/13% compound annual growth rates in revenue/profit after tax over FY20-22 with a 14% plus Ebitda margin.
Strategic moves (inventory reduction, channel financing, etc) will aid in long-term sustainable growth.
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