Polycab stocks plunged nearly 9 per cent following reports of a Rs 200 crore tax evasion. According to sources, the income tax department identified alleged transactions amounting to Rs 250 to 300 crore in the company’s promoter accounts. The company, however, has refuted these allegations.
The stocks experienced significant losses and settled at Rs 4867, marking an 8.93 per cent decline on the National Stock Exchange (NSE).
On 22 December, income tax authorities conducted raids on 50 different Polycab outlets. Despite the allegations, the company denied any contact from the IT department regarding the December search results. They stated that post the search, the company promptly provided the information and explanations requested by the income tax agency.
Polycab India operates approximately 25 warehouses, 15 offices, and 23 manufacturing plants across the nation. Apart from cables and wires, the company produces FMEG (fast-moving electrical goods).
In terms of financial performance, Polycab reported a 58.5 per cent increase in consolidated net profit to Rs 436.89 crore for the quarter ending in September 2023, with December quarter results awaited.
Polycab India’s stock has witnessed a 12 per cent decline in the past month, including a 6 per cent drop after the raids on 22 December.
