Shares of Polycab India were skyrocketing on Friday after the troubled wires and cables maker posted a strong surge in March-quarter profit that beat analyst estimates.

What Happened: The firm reported a robust 29% year-on-year surge in consolidated net profit, reaching ₹553 crore compared with ₹428 crore same period last year. This beat analyst estimates of ₹480 crore.

The company’s revenue from operations also climbed to ₹5,592 crore, 29% higher than the previous year’s ₹4,324 crore—higher than street expectations of ₹4,979 crore.

Operating profitability also saw an uptick of 10% to ₹762 crore, beating estimates of ₹693 crore. However, the operating margins witnessed a marginal decline of 30 basis points to 13.6%, slightly below the estimated 13.9%.

Polycab India proposed a dividend of ₹30 per equity share for FY24, resulting in a dividend payout ratio of 300%.

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“This outstanding performance is a direct result of our steadfast focus over the years on key areas such as expanding our distribution network, enhancing manufacturing capabilities, and striving for operational and organizational excellence,” commented Inder T Jaisinghani, Chairman and Managing Director at Polycab India.

IT Raid Update: Polycab’s premises had been raided by income tax authorities in December 2023. However, Polycab India in its earnings report on Friday claimed it had not received any written communication from the department regarding the outcome of the search.

Tax authorities had previously been reported to have said that the search and seizure operation revealed evidence that the group had conducted unrecorded cash sales totalling about ₹1,000 crore.

Price Action: Polycab’s share price was up 8.11% at ₹6,274.10 in afternoon trade on Friday.

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