Poly Medicure

Poly Medicure or Polymed as it is known are manufacturers of medical devices. The company makes over 100 products, covering almost entire spectrum of medical equipments. It has four plants in India and one in China.

The company’s performance for Q3FY16 was not very encouraging. Despite a 4% drop in total costs, raw material costs coming down 17%, interest costs reducing 33% and tax outgo coming down 45%, the company ended the quarter with a 12% drop in net profit at Rs.10 crore. The net sales itself was down to begin with – a decline of 5% at Rs.90 crore and this led to a cascading downward impact.

The stock had risen post the Union Budget, following the customs duty exemption given to dialysis machines. But cost of other devices have risen because a month before the Budget, in January, the Govt hiked customs duty all across the board. This has led to cost of most medical devices rising by 17-18%. For this company, Q4 is usually the best quarter and we could see some recovery; it needs a good quarter desperately as its net profit for 9MFY16 stood at Rs.33 crore while that for entire FY15 was at Rs.61 crore.