Polycab Emerges As Lowest Bidder For BSNL Contract Worth Over Rs 1,500 Crore

Polycab India Ltd. has emerged as the lowest bidder for a contract worth Rs 1,549.7 crore from Bharat Sanchar Nigam Ltd.

The contract involves development, upgradation and operation along with maintenance of the middle-mile network for BharatNet. The company will get three years for construction and 10 years of maintenance contract, according to an exchange filing on Wednesday.

For the first five years, the maintenance contract will be provided to the company at 5.5% per annum of capital expenditure per year and at 6.5% per year for the next five years, the filing said.

Polycab India Q2 Performance

Polycab India reported a net profit at Rs 445.2 crore year-on-year, denoting a 4% increase for the three months ended September, compared to Rs 429.8 crore for the same quarter last year. It reported a 30% rise in its revenue to Rs 5,498.4 crore, as compared to Rs 4,217.7 crore for the second quarter of the previous financial year.

The electrical solutions provider's earnings before interest, taxes, depreciation and amortisation were reported at Rs 631.6 crore, a 4% rise as against Rs 608.9 crore for the same quarter of the previous fiscal.

The firm's consolidated margin widened to 11.5% from 4.4% in the in the year ago period.

Shares of Polycab closed 3.79% higher at Rs 6,883.95 apiece on the NSE, compared to a 1.12% rise in the benchmark Nifty 50. The stock has risen 33.96% on a year-to-date basis and 25.51% in the past 12 months.

Twenty-one out of the 33 analysts tracking the company have a 'buy' rating on the stock, eight suggest 'hold' and four recommend 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 10.6%.