Poly Medicure shares decline 7% after Q3 profit and margins take a hit

Shares of Poly Medicure Ltd. declined nearly 7% on Friday, February 6, reacting to its third quarter earnings. The stock is among the top losers on the Nifty 500 index.

Poly Medicure's revenue growth was steady during the December quarter but its margins and profit took a hit.

Its revenue increased by 16.4% to ₹493.66 crore from ₹424.2 crore in the previous year. Meanwhile, its profit declined 16.9% to ₹70.81 crore from ₹85.2 crore.

Its earnings before interest, tax, depreciation and amortisation declined 2.8% to ₹111.2 crore from ₹114.4 crore in the previous year. Meanwhile, its margins contracted to 23% from 27% in the year-ago period.

The company's cash on books was ₹839.8 crore.

Revenue for the domestic business increased 16.2% to ₹146.6 crore from the previous year, and it was up 4% sequentially.

Meanwhile, the international business was up 16.1% from the previous year and 14.1% from the previous quarter to ₹342.8 crore.

Within the international segment,

revenue from the European Union increased 25.7% to ₹129.1 crore, and it was up 23.1% sequentially.

For rest of the world (RoW) it increased 9.5% annually and 7.3% sequentially to 165 crore.

Infusion therapy witnessed a 5% increase from the previous year and a marginal increase from the previous quarter to ₹274.3 crore, while Renal therapy too saw a 15.1% increase annually and 1.3% sequentially to ₹44.8 crore.

Shares of Poly Medicure are trading 7.1% lower at ₹1,395.6. The stock has declined 21.5% in the past month and 42.4% in the past year.

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