Shares of Polycab India saw a significant rise of over 4% on Wednesday, following the announcement that the company emerged as the lowest bidder for a major project from Bharat Sanchar Nigam Limited (BSNL). The stock climbed as much as 4.18%, reaching ₹6,910 on the National Stock Exchange (NSE). By 11:05 am, the shares were up by 2.6% at ₹6,801.5 per share. On the Bombay Stock Exchange (BSE), the price was ₹6,803.7, also reflecting a 2.6% increase.
Also Read: Sagility India Ltd IPO Day 1 Sees Strong Start with 0.22x, Read More!
Polycab Wins ₹4,099 Crore BSNL Project
The rise in Polycab’s share price is attributed to its success in securing the lowest bid for BSNL’s ₹4,099 crore project. The project involves the development, upgradation, operation, and maintenance of the middle-mile network under Bharat Net’s design, build, operate, and maintain (DBOM) model. The timeline for construction is three years, with a 10-year maintenance period, where the company will receive 5.5% of the capital expenditure annually for the first five years and 6.5% for the subsequent five years.
Polycab’s Q2 Profit Growth
Polycab India reported a 3.4% increase in consolidated net profit for the second quarter of FY25, reaching ₹439.8 crore, up from ₹425.5 crore in the same quarter the previous year. The company also saw a significant rise in its revenue, which surged by 30.4% to ₹5,498.4 crore, compared to ₹4,217.6 crore in Q2 FY24.
Challenges in Wires and Cables Business
Despite the strong growth, Polycab’s EBITDA margin for Q2 stood at 11.5%, impacted by heightened competition in the wires and cables sector. This competition has affected margins, though the company managed to maintain strong overall growth in its financial results.
Also Read: Market Rally Today: SENSEX Surges 591 Points, NIFTY Up 180 – Explore More!
Positive Outlook for the Future
Polycab India’s Chairman and Managing Director, Inder Jaisinghani, expressed optimism about the future. He highlighted the company’s strong performance in the first half of the financial year, driven by robust demand across sectors. Jaisinghani expects this demand momentum to continue, bolstered by increased government spending, private sector investments, and the continued growth of the real estate market.
