Q1 2027 Poly Medicure Limited Earnings Call Transcript
Key Points
- Standalone revenue grew 12.3% YoY to INR431 crores, with domestic growth of 16.2% and international growth of 10%.
- Gross profit margin improved significantly to 71.5% on a standalone basis, driven by better product mix, price increases, and inventory gains.
- Standalone EBITDA margin exceeded guidance at 28%, up from 18.8% YoY, despite higher employee costs.
- Europe showed strong recovery with 43.8% reported growth (17.6% organic), reflecting new customer additions and improved performance.
- Cardiology segment scaled up significantly, growing from INR2.9 crores to INR28.6 crores, driven by acquisitions and domestic expansion.
- The company maintains a strong balance sheet with INR855 crores in cash, earmarked for strategic initiatives and expansion.
- Government initiated an anti-dumping investigation into dialyzers from China and Malaysia, which could protect the renal business.
- Leadership reinforcements, including new CEOs for India/APAC and Brazil, are expected to drive growth in key markets.
- The company has a robust pipeline of 25-30 new product launches annually, with 25 new products awaiting CE marking.
- Consolidated revenue grew 30.3% YoY, with acquisitions contributing INR72.3 crores, and the company maintains FY27 guidance.
- Renal segment growth was weak at 3.8% due to pricing pressure from Chinese players, leading to cautious volume decisions.
- Middle East exports declined 32% due to the ongoing West Asia crisis, causing logistics and shipping disruptions.
- Employee costs rose 29% due to a 35% increase in minimum wages in Haryana, higher headcount, and annual increments.
- Consolidated EBITDA margin was at the lower end of guidance at 24.1%, impacted by higher costs from acquisitions.
- Gross margins are expected to normalize to 68-69% on a standalone basis, indicating Q1's high margin may not be sustainable.
- The company faces uncertainty in the US market due to potential tariff changes, though current exposure is limited.
- Working capital cycle remains elevated at around 140 days, with no immediate improvement expected due to geopolitical issues.
- Acquired companies (Pendra Care and GTF) are not yet showing significant growth, with Pendra Care impacted by Middle East exposure.
- Organic growth in Rest of World was only 4% due to Middle East disruptions, despite intact customer demand.
- The company's ambitious 2030 vision relies heavily on inorganic growth, which carries integration and regulatory risks.
Ladies and gentlemen, good day and welcome to the Poly Medicure Limited Q1 and FY27 only conference call.
Today on this call, we have with us the senior management team of the company, represented by Mr. Himanshu Baid, the Managing Director, Mr. Rahul Gautam, President, Strategy and Corporate Development. I now hand the conference over to Mr. Himanshu Baid.
Thank you, and over to you, sir.
Yeah, good evening, everyone, and I welcome you to our quarter one FY27 earnings call. I sincerely thank all of you for being here today.
Before I come to number, I want to give you a glimpse of our Strategic Vision 2030. And we are calling this as a PolyMed 3.0.
As you all know, PolyMed initiated operations in 1997 with an IPO of INR2.65 crores using which we set up our first plant. In the next 25 years, we remain bootstrapped and slowly build our leadership in our core infusion therapy business by painstakingly building global quality products. During this period, business grew
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
