Poly Medicure (531768) Q2 24/25 earnings summary

Executive summary

• Revenue growth for H1 FY25 was 23% year-over-year, consistent with annual guidance of 22%-24%, and supported by all-round growth in revenue, EBITDA, PBT, and PAT over recent years.

• All four new plants are operational, increasing capacity and automation, with current blended capacity utilization at 60%-65%.

• Export business comprised over 70% of sales in H1 FY25, with Europe and the US showing robust growth and long-term visibility.

• Domestic business rebounded, growing 22%-23% year-over-year in Q2/H1 FY25, with full-year guidance maintained at 20%+.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 ended 30 September 2024.

Financial highlights

• Q2 EBITDA margin improved to 28.06% from 25.82% in Q2 last year and 27.5% in Q1 FY25; FY24 EBITDA margin was 30.49%.

• Q2 PAT increased to INR 87.22 crores (₹8,745.47 lakh) from INR 59.21 crores (₹6,218.91 lakh) year-over-year.

• H1 standalone revenue rose from INR 625 crores to INR 770 crores; consolidated revenue for H1 FY25 was ₹80,479.15 lacs, up from ₹65,812.39 lacs year-over-year.

• H1 operational EBITDA increased from INR 167 crores to INR 214 crores; PAT rose from INR 119 crores to INR 159 crores.

• Basic EPS for H1 FY25 stood at ₹16.73, up from ₹13.02 in H1 FY24.

Outlook and guidance

• Full-year revenue growth guidance remains at 22%-24%.

• Domestic business expected to grow 20%+; export business to maintain 25%-27% growth.

• Renal business projected to grow 50% for the year, targeting INR 140-150 crores.

• Plans to invest ₹500 crore over the next two years for expansion of three manufacturing facilities in Haryana, Uttarakhand, and Rajasthan.

• Margin improvement guidance of 100-150 basis points is maintained.