Polycab India shares pare early gains after Q3 profit jumps over 15% YoY

Shares of Polycab India, after gaining over 2.5 per cent in early trade on Friday (January 19), pared their gains and were last trading at Rs 4410, down 0.8 per cent.
 
The cable company on Thursday reported a 15.35 per cent increase in consolidated net profit at Rs 416.51 crore for the December quarter. The company had logged a net profit of Rs 361.06 crore during the October-December period a year ago, the company said in a regulatory filing.
 
Its revenue from operations rose 16.83 per cent to Rs 4,340.47 crore in the third quarter of the current fiscal, up from Rs 3,715.18 crore in the year-ago period. The growth in revenue was "on the back of strong volume growth in the wires and cables business," said Polycab in an earnings presentation.
 
Polycab India further said that last month the Income Tax authorities conducted searches at some of its premises, plants, and residences of a few of its employees. The company extended full cooperation to the officials during the search and provided the required details, clarifications, and documents, it said.
 
The global brokerage Morgan Stanley maintained its 'overweight' stance on the stock with a target of Rs 5,888. This is a strong upside of 33 per cent from the last closing price.