Mumbai, March 4 (IANS) Shares of Polycab India Limited ended lower on Wednesday after the company said it has received an income tax demand of Rs 327.45 crore for the assessment year 2024-25.
The order was issued by the Office of the Deputy Commissioner of Income Tax, Mumbai, and was received by the company on March 3, 2026.
The demand follows an assessment order that includes disallowances and additions amounting to Rs 41.87 crore.
However, Polycab said that after consulting its tax advisors, it believes the total demand appears higher than the additions mentioned in the order due to possible computational or clerical errors.
The company said these errors can be corrected under the provisions of the Income Tax Act and that it has started the process of filing a rectification application with the jurisdictional Assessing Officer.
Polycab also said that it considers the tax demand to be legally unsustainable and is preparing to file an appeal against the additions under the Income Tax Act, 1961.
The company added that it does not expect any material impact on its financial position or operations because of the order.
Despite the tax issue, the company reported strong quarterly earnings. Its revenue for the December quarter rose 46.1 per cent year-on-year to Rs 7,636.1 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 34.2 per cent to Rs 966.7 crore from Rs 720 crore a year ago.
However, EBITDA margin narrowed to 12.66 per cent from 13.8 per cent last year.
The company’s advertising and sales promotion expenses more than doubled to Rs 91 crore from Rs 37.3 crore in the same quarter last year.
Finance costs also rose to nearly Rs 69 crore compared to Rs 50 crore a year ago, according to its earlier stock exchange filing.
Segment-wise, revenue from the core wires and cables business jumped to Rs 6,852 crore from Rs 4,450 crore last year.
The fast-moving electrical goods (FMEG) segment saw revenue rise to around Rs 500 crore from Rs 423.1 crore, while the EPC segment reported revenue of Rs 407 crore compared to Rs 392 crore in the year-ago period.
Following the developments, shares of Polycab India Limited closed at Rs 8,274.50 on the BSE, down Rs 273.90, or 3.20 per cent.
--IANS
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