Poly Medicure foresees consistent margins in upcoming quarters
In an interview with CNBC-TV18, Himanshu Baid, Managing Director of Poly Medicure spoke about the company's performance, market dynamics, and the challenges it faces in the medical industry.
Poly Medicure’s margin projection remains steady at 25-27 percent due to the stabilisation of raw material prices over the past few quarters and the normalisation of freight costs. As a result, the company is anticipated to maintain comparable margins in the upcoming quarters as well.
The company released consolidated quarterly financial results for Q1FY24 wherein the net sales reached Rs 320.83 crore, marking a significant increase of 28.92 percent compared to the Rs 248.85 crore recorded in June 2022. During the same period, the quarterly net profit surged to Rs 62.70 crore in June 2023, displaying a substantial growth of 132.53 percent from the Rs 26.96 crore reported in June 2022. The company's EBITDA for Q1FY24 stood at Rs 100.30 crore, showcasing an impressive rise of 96.55 percent in comparison to the Rs 51.03 crore recorded in June 2022.
Furthermore, Poly Medicure's earnings per share (EPS) also demonstrated a noteworthy improvement, reaching Rs 6.54 in June 2023 from the previous figure of Rs 2.81 in June 2022.
In an interview with CNBC-TV18, Himanshu Baid, Managing Director of Poly Medicure spoke about the company's performance, market dynamics, and the challenges it faces in the medical industry. He also stated about the company's export growth, domestic market trends, and the larger issues affecting the sector.
He said, “Raw material prices have stabilised in the last couple of quarters and also the freight cost has normalised now. So, we should see similar margins in coming quarters.”
When it comes to the domestic market, Baid said that the company experienced an impressive growth rate of over 30 percent. Simultaneously, the company's export growth reached a commendable 25 percent, signifying its capacity to navigate international trade complexities.
He also addressed the growth rate of the renal business segment, stating that it is currently growing at 25 percent, a figure slightly below the company's expectations.
However, one of the significant challenges Baid discussed is the dumping of raw materials from China. Baid's visions also underscore the dominance of China in the medical market. He noted that around 50-60 percent of the market is controlled by Chinese suppliers, with the remainder being dominated by multinational corporations (MNCs).
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