Cables, Wires – Revival In Govt Infra Capex, Healthy Volume Outlook Provides Growth Visibility: Dolat Capital


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In order to assess the ground situation in cable and wires category, we interacted with Polycab India Ltd. and KEI Industries Ltd.’s distributors in the South region, generating an annual turnover of Rs 2.2-3.5 billion, servicing 900-1000 dealers. Key takeaways of our interaction are as follows-

Despite decline in prices of copper/alumium in April-November 2022 year-to-date by 15-20% YoY, revenue has increased ~20%. This implies strong volume growth in the category both in business-to-business and business-to-consumer.

After a brief period of slowdown, sales have picked up post Dassera. As per distributors, there has been 4-6% month-on-month growth since Sep-22. They expect revenue growth of up 20% YoY in FY23E.

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