Thank you, everyone, for taking out time and attending the call. Thank you for your trust and support over the period. We take this opportunity to wish you, your family members and each and every member of your family a very happy Diwali. Thank you. Take care. Bye-bye.
Questions across 8 calls
Gandharv Tongia
Firm not listed in source transcripts
Polycab India Limited
Thank you so much for taking out time and joining us for this call. We deeply appreciate and value your support over the period. In case there are any unanswered questions or you want to share any feedback to us, please feel free to reach out to me or Chirayu. You can also write to investor.relations@polycab.com. Thank you. Have a great day ahead. Bye-bye.
Thank you for your support in our previous transformation project, the Project LEAP. We are now counting on your support for our next ambitious project, the Project Spring. Thank you for joining us today, and wish you a great day ahead. Thank you. Bye-bye.
Thank you so much for joining us for this call. In case if you have any follow -up questions, please feel free to write to our investor.relations@polycab.com. We also take this opportunity to wish you and everyone at your home as well your team a very Happy Diwali and a joyous New Year. Thank you. Take care. Bye-bye.
Your observation is right. As Chirayu mentioned a while back , because of change in volatility of copper prices in the month of June we witnessed a slowdown in demand particularly from the channel. We had a very robust run in the last fiscal, and in anticipation we had a slightly higher than actual required inventory at RM level as well as the finished goods level. So that is the reason why the working capital has stretched a bit. And second reason which h e mentioned a while back is the uptick in EPC business and institutional business. As you know, both of these businesses are not on channel financing, which has some impact on our receivable days. So by and large the cash flow which you are reading got impacted because of the change in mix and higher inventory which we b elieve is transitory in nature a nd in the quarters to come we should be able to normalize and go back to re gular working capital cycle of 50 or 55 days or thereabouts.
Yes, sure. Your observation is right. As Chirayu mentioned we have a small EPC business. In general, if you were to reflect on the last year June it was almost 3% of our top line. This year it is 10% of top line. In the EPC business, there are some balance s which are retained by the customer as retention money which ranges between 5% to 15% depe nding on the customer in contractual terms and these as per the accounting standards are required to be classified as long- term receivables. That ₹120 crores is comprising of such balances.
Thank you so much for taking out time and reviewing our performance. We deeply appreciate your support over the years. In case if there are any unanswered questions, please feel free to write to us at our IR mailbox, and we will get in touch with you at th e earliest. Thank you, and have a great day ahead. Bye-bye.
Thank you so much for your kind words. As Inder bhai mentioned a while back, in the month of December, income tax officials visited our corporate office as well as few other offices and plants and they conducted search, which is a typical section 132 of the income tax search. As you know, search is a slightly longish process because a particular wing of the department is involved initially for search. And once they conclude their process, which generally takes around two months, in few cases probably more than two months, they then provide that report to the assessing officer, and then assessing officer takes the final decision and communicates the final conclusion to the assesee. So, this is what we experienced. I am aware about the press release you are referring to. I am assuming the department followed its own set of processes and that's why they released that press release. At this stage, since we haven't received anything from the department, we are unable to comment more than what Inder bhai has already covered in his opening remarks. And as we mentioned to the other investors as well, we'll continue to cooperate with the department, and we are looking forward to maintain our focus on the growth and take the Company to the newer heights in the quarters and years to come.
So, Renu, as you know, we are in FMEG business since the last 10 years or so and we have had exits at the leadership level. But as we are one of the emerging challenging brand on FMEG, at times in life you have to take a pit stop, reflect back and see what you need to do next, and that is what we have experienced in the last couple of quarters. We prac tically have the entire blueprint in place, we have the leadership in place, and the second line under the leadership team is being recruited. I think at this stage, as Chirayu mentioned, we would not like to divulge everything what we are planning to do, but just give us one or two quarters. Hopefully, once the t yre hits the road, probably we would be able to talk about it with greater detail. But FMEG was and continues to be a focus area, and we firmly believe that this will add a lot of value to all of us at the Company as well as to our stakeholders.
So, Manoj, these are period costs. As and when the event has occurred, this has been accounted for in the relevant period. So, till the 30th of September, whatever event has occurred, whatever advertisement has been done, whatever shots have been aired , those have been accounted for. And as the World Cup is continuing, the balance cost as and when it is incurred, it will be accounted for in the third quarter.
If we are able to sustain the current levels or the current scale that we are operating, if we are able to sustain the contribution from international business of HDC, LDC different types of mix, definitely we should be able to sustain the margin. But sitting at this point in time, we wouldn't be able to comment that 100% sure that is something that will play out. But 11% to 13% is something that we definitely believe that irrespective of what happens, that is something that we' should be able to achieve. And hence, that has been our guidance.