Good evening, everyone, and I welcome you to our quarter one FY '27 earnings call. I sincerely thank all of you for being here today.

Before I come to numbers, I want to give you a glimpse of our Strategic Vision 2030, and we're calling this as a Polymed 3.0. As you all know, Polymed initiated operations in 1997 with an IPO of ₹2.65 crores using which we set up our first plant.

In the next 25 years, we remained bootstrapped and slowly built our leadership in our core infusion therapy business by painstakingly building global quality products. During this period, business grew from 0 to almost INR 7 billion in revenue.

In 2021, Polymed started 2.0 journey, which we call the inflection point in our history of the company. We did our first institutional fund raise, which resulted in multifold expansion of capacity.

We also entered into high-technology segments like cardiology, critical care, orthopedics. During this period, we also started our inorganic growth journey with acquisitions of Plan1 Health and CTF.

Revenue during this period almost went up by 2.75 times to INR 18.75 [billion?] in FY '26.

Starting FY '27, we have initiated Polymed 3.0, a phase we're calling Ascent. During this period, we have set a goal to double our revenue by FY '30 by unlocking value via organic and inorganic expansion, leveraging technology to scale high-complexity verticals globally, and deepening direct customer access, especially in international markets.

I believe we are at a point of time in our journey where growth should happen exponentially led by high-technology, high-margin segments. Given the strength of our balance sheet where we continue to have strong liquidity, we believe this audacious goal is truly achievable.

I'm really excited about this phase, which I believe will truly make Polymed a global medtech MNC out of India. On the leadership front, we have already initiated actions to achieve our Polymed 3.0 vision.

We have appointed Indranil Mukherjee as our CEO for India and APAC, Renato Roca as CEO for Brazil. Indranil has joined the company on 1st June 2026.

Renato has joined the company on 1st August 2026. We have also brought in Abhimanyu Hooda as the head of renal business in India to augment sales and also build a strong capability in this segment.

I believe the above leadership reinforcements will help us to put a strong position to deliver on our aspirations. Moving on the financial performance of the company and Q1 financial results.

On the financial performance side, let me start with our standalone performance, as this remains core for our group. Standalone revenue for Q1 was ₹431 crores, up 12.3% with domestic at ₹146 crores, giving a growth of 16.2% and international at ₹281.8 crores, giving a growth of 10%.

Gross profit for Q1 was 71.5%, showing significant improvement due to better product mix and impact of price hike implemented in Q1 and inventory gain. I expect that our gross margin should continue to reflect on historic margin trend of 68 to 69% in near term.

We had guided a standalone EBITDA margin of 25 to 27% for FY '27, but we have delivered 28%, 100 bps higher than the guided range. Absolute operating EBITDA was ₹120.8 crores, up from 18.8% on year-on-year basis.

This was despite employee cost rising almost 20 by 29% driven by 35% increase in minimum wages in Haryana with effect from 1st April 2026, increase in head counts as well as impacting increments for FY '27. Now on the consolidated picture, consolidated revenue was ₹525 crores, up 30.3%.

Of that, ₹72.3 crores came from acquisitions, on organic basis revenue was ₹453.1 crores, up 12.4%. Within international, Europe grew 43.8% to ₹187.3 crores, and importantly, it grew 17.6% organically, reflecting the improvement in the performance in the region.

As last year Europe was a laggard and this year, as we have added some customers, onboarded new customers, we were able to come back to our original growth or planned growth of 17 to 18% as we had forecasted in the beginning of the year. Rest of the world grew at 30.3% on reported basis and only 4.0% organically.

The reason for low growth was 32% degrowth in the Middle East due to ongoing West Asia crisis. Customer demand in the region is intact, but given the current logistic and infrastructure bottlenecks, we are unable to meet that demand.

We are hopeful that once the situation improves in the region, it will return to normalcy. Our order book is pretty strong for Middle East, but currently we are unable to ship the products.

Consolidated gross profit was ₹385.6 crores at a margin of 73.4% margin, up 495 basis points. The better margin profile of the newly acquired businesses is helping improve group's gross margin.

Consolidated operating EBITDA was ₹126.7 crores, up 17.7% at a margin of 24.1% within our guided range of 23 to 25% for the year. Infusion therapy grew by 11.1% to ₹259.2 crores led by strong domestic growth on back of rising share of higher value-added products and price increases.

Internationally, we have started to witness a strong recovery in the business despite a 32% degrowth in the Middle Eastern markets. Orthopedic contributed ₹49.2 crores, which reflects the consolidation of CTF.

Cardiology grew from ₹2.9 crores to ₹28.6 crores led by Plan1 Health acquisition together with genuine scale-up of domestic business. Others grew by 18.5% to ₹149 crores, constituting the balance.

The one soft spot was renal, which degrew by 3.8% to ₹43.2 crores. The renal business was impacted by continued pricing pressure from Chinese players in India, but we made a conscious choice to raise prices to cushion the raw material price increases rather than defend volume at any cost.

Separately, there is an important development. Based on application filed by the company, the government has initiated anti-dumping investigation into imports of dialyzers from China and Malaysia, and we have claimed for injury margin of 20%, and we hope in next few months, we will see some decision taken by the government to protect local industry.

On the balance sheet front, the liquidity remains strong and with a cash of about ₹855 crores, which is the reserve we have set aside for strategic initiatives. Now let me connect this to our forward-looking guidance for FY '27.

Before this, I would also like to point out that company has been now pushing hard on the developing new medical devices, and for that, we have also initiated a lot of clinical studies, and as a support, Government of India has also granted an aid of around ₹3.3 crores for undertaking clinical studies of some new critical devices which we have just recently developed. On the guidance front, on the consolidated basis, we are guiding for revenue of ₹2,300 to ₹2,400 crores including the full year consolidation of Plan1 Health and CTF.

We are maintaining this guidance after quarter one. On standalone basis, we maintain revenue guidance of ₹1,900 to ₹2,000 crores with the domestic business expected to grow over 20% and international business growing by over 15%.

Standalone EBITDA margin is expected to be between 25 to 27%. Though currently in the first quarter we have done 28%, but still we think that maybe for the first quarter, the margin was slightly high because of price increases we have taken and some inventory correction.

Hopefully, we should be in the higher range of 25 to 27%. With consolidated EBITDA margin expected to be in the range between 23 and 25%.

This quarter, we have done 24%, we are pretty much in the range and hopefully we can maintain this. We expect to spend between ₹200 to ₹225 crores in the capex for FY '27.

In summary, this is a quarter where the strategy started converting into numbers. The high-technology, high-complexity segments we invested in through Polymed 2.0 are now generating the value we anticipated.

I remain confident in the direction of the business for the year FY '27. Thank you very much for your trust and time.

I will now hand over to operator and will be very happy to take your questions. Thanks again, everyone.

Hi. Thanks for the opportunity.

Hope I'm audible.

Yes, sir. Yeah.

Just wanted to understand on the standalone business, we are looking at an absolute revenue of closer to ₹350 to ₹400 crores, whereas in Q1 we've grown closer to 12% on the standalone business. If you can just help us tally the number in terms of absolute revenue, ₹350 to ₹400 crores, where exactly are we planning to get there?

That is question one. Sir,

you mean the incremental growth of ₹350 to ₹400 [crores?] , that's what you mean?

Yeah. Yeah.

Yeah.

I think our quarter one tends to be the lowest, if you look at the history of the business, and it tends to grow as we go into the financial year. This year because we've also taken a price hike, right, at the beginning of the financial year to account for the increase in raw material prices, the beginning of the year was slightly slow and we recovered some of the revenue in later part of the quarter.

As that momentum continues, we believe that we should be able to get to much better numbers in Q2 onwards and still achieve the guidance that we've given.

Got it. Fair enough.

Sir, second question is regarding the inorganic acquisition. We have closer to ₹850 crores in terms of cash.

If you can throw some light what exactly are we looking out for? Are we going to utilize the entire amount of ₹850-odd crores or how is it?

That is question two.

Basically, we are looking at expansion, organic and inorganic. As we have done a very small acquisition in Brazil recently, we are trying to put our presence there and board has also allocated some funds for Brazilian market where we can expand with direct sales presence.

Of course, we are looking at technologies around three critical businesses in cardiology, oncology, and orthopedics, and we are looking at adjacent technologies. Wherever we find an opportunity, we will look at that.

Some of the funds are also allocated for the capex to be done at two plants which are under construction at this moment. One is coming in Palwal in Faridabad and then one in Noida basically, in the medical device park.

Got it. Would you like to share some asset turns for the capex that you're planning?

The asset turns for us, if you look at the past, remains between 1.2 to 1.4. We expect on a balance sheet basis similar kind of asset turn to continue.

Fair enough, sir. Thank you so much.

I'll get back in the queue.

Thank you.

Hi. Thank you for the opportunity.

If I look at our India growth ex of renal, and I'm assuming all of renal was India, then that is 27%. Overall infusion growth was much lower, right, around 11%.

What was the therapy that drove India growth, if you could give us some understanding? On the disruption that you've seen in ROW export, right, given that this is really at some level an essential product, have you seen the resumption of exports in Middle East, or are you still envisaging this to continue until the conflict settles?

The third one is, do we expect further RM cost impact in Q2 versus what we've seen in Q1, given your inventory levels? I know you've taken certain price increases, but how should one think of gross margins in Q2?

These were my three questions. Yeah.

No,

thank you for these questions. Let me take the first one, which is the segment which have driven the growth for us domestically, right?

As you rightly said, our infusion therapy business has grown at about 11%, and this reflects the performance both domestically and internationally. On the domestic side, infusion business has actually grown 20% plus for us in this quarter.

The other segments which have grown for us is obviously cardiology, critical care, two segments which we have recently initiated and those are contributing to growth quite meaningfully in this quarter. Your second question, can you

On the second question, the supply chain on the shipping are still disrupted right now. If you look at the shipping schedules are still disrupted for Middle East and it's still hard to find containers which can go to Middle East ports.

Still the disruption continues. Hopefully, in coming weeks, we may see something easing out.

On the demand side, we see still it's an intact demand. We have orders from customers.

They are piling up at the ports, but unfortunately as the ships are not calling, they are stuck up at the ports. That's the issue.

On the price side, I think currently as crude stays where it is, I think we don't see a major impact on raw material cost, maybe minor few percent here and there, but more or less I think probably we have almost seen that peak off. Right.

Just on the acquisitions, any update in terms of how the integration is going, how are you thinking of any integration in terms of cross-sell or the movement of some of that production back to India? Just some updates on that.

Sidharth, I think, we are quite happy with the way how the integration process is going on for both the acquisitions that we've done. We have clearly identified areas of benefits that both the companies see with each other.

We have created a group which is continuously following up on all of these synergies. This includes across the cost items as well as on the R&D side, plus the sales velocity that we're trying to increase.

On an overall basis, we are very happy. On the part of moving the manufacturing process to India, we are currently working with both Plan1 Health and CTF on that part.

Given this is a regulated sector and any such process change needs a regulatory approval, some of these processes currently are at the regulatory approval stage.

Got it. Rahul, have we already started seeing some cross-sales synergies, or is that going to be more later in the year?

I would expect some of this to start playing out from next financial year onwards, because given medical devices is a regulated sector, any new market that you want to open up, like even for India, if you want to bring those products into India, we need to take the approval from the CDSCO, and that process is on. I would expect that to start being visible from next financial year onwards.

Got it. Got it.

Thanks.

Thanks, Sidharth.

Hello? Am I audible?

Can you be louder, please? We can't hear you.

Hi, Himanshu. Good to see the hunger for the growth is enunciated in Polymed 3.0.

The first question is we have said we want to double the turnover and margins to be the industry-leading margins. The growth will come both organically as well as inorganically.

When you say 2030, I presume it is March 2030, 4 years, right?

Yeah.

That means doubling will mean about 18% compounded growth in the 4-year journey. Any That's right.

That's right. That's right.

How much of that is counted as organic?

Bharat, if you see in the current avatar, company does around 80% organic business and 20% inorganic business. I think we'll probably continue at a similar run rate.

Okay. About 14-15% organic,

and

3 to 4% would come from acquisition. Yeah.

That's right. In a trajectory basically.

Sure. By industry-leading margin, I presume much better than what we have outlined for the current year, but what kind of margins should one assume on that?

Bharat, this is Rahul. If you look at the margin profile of Polymed today, we are already the flagbearers in terms of profitability across the industry.

I think we have the ability to improve our margins even now, but given we are focusing on growth in the near term, we want to keep the margins in the similar range. We've guided for 25 to 27% margin.

We expect that we should close this year with upper end of that guidance range. As the scale happens, we should be able to increase that margin as well, but given we'll be reinvesting back in the business, from a modeling perspective, assuming a similar kind of margin will be a reasonable assumption to take.

Similar margins, but not lower, right?

Yes, that's correct.

Okay. Himanshu, I'm just trying to understand when we look at somebody like Meril, which is doing a lot of cardiology-related business, the scale-up itself has happened at a pretty rapid pace

and

the margins also are quite impressive. I was just wondering what kind of opportunities we can hunt around, because this kind of margins and the rapid scale-up in the business, what are your own thoughts and your observations?

Bharat, Meril started cardiology business around 15 years ago. It's not something which they have started new.

They had started this business almost 15 years ago developing products, and Polymed was never in that space earlier. Of course, we still had great margin profile between 25 and 27%.

We have started cardiology only 2 years ago, and that's why we're building it up developing products. As I had just told you, we have been given a grant of ₹3.3 crores for clinical studies in India because a lot of these are import substitution devices.

That's been our focus. As we move up, again regulatory pathway is very important, because that needs time and it cannot be just like that you build a product and you can start selling tomorrow.

It's all about regulatory pathway, clinical studies, we're building this up. I think in next 2, 3 years, you will see a lot of new products coming from our portfolio on cardiology side.

I think that's the journey we need to take. Let's not forget that we have our global excellence on infusion and vascular access and we will continue to build that globally also.

We have our cash cow, we have a product which works very well for us. We'll continue to build there, but we'll also continue to invest in this new areas of orthopedics, cardiology, and critical care that will help us to actually grow business in India and internationally in near future.

Okay. Just one last thing.

Last year in many ways has been a bit of a tumultuous kind of a year where many imponderables kept coming in, many of them outside your control in the external environment. Today as we stand and armed with some of the acquisitions that we have done, with the plants and the capacities in place, and some of the new categories established, when you look at that 2030 vision that you have spelled out, what are some of the very positive points you have in your mind and what are still some of the challenges that you visualize?

Bharat, it's a long question, but I'll try to answer in a short limited time. One is, I think on the opportunity side, India happens to be the best opportunity in my view, because now Polymed brand is very well-known.

Today we are present in almost every corporate hospital in the country or every important hospital. Most important thing will be to deepen that relationship with those hospitals and start working more aggressively in putting more products out there.

I think that is number one priority. Number two would be Europe, where we continue to expand our business and continue to go as a go-to-market direct strategy.

We currently present only in Italy, we want to go maybe three or four geographies we want to go direct, so that's a very important part of the strategy. As we just hired a CEO in Brazil, we will also put our strategies there to go directly with more new products, the newer range we have today.

Currently our distributors only sell our existing products. For new product ranges, we will want to go direct.

That is on the market side. Product side anyways, we are going to launch 25, 30 products a year, so that's already in the pipeline, that's already happening.

I think challenges is probably the geopolitical risk which I see. US uncertain because of everyday there is a new situation which is coming up.

Middle East hopefully the war kind of settles down so that the market resume and we are able to resume the flow. Also the logistic costs, which have actually gone up substantially, 2, 3 times in last 6 months, I think they will have to come down for India to remain competitive in exports.

These are some of the things which come to our mind, Bharat.

Sure. No, thank you, Himanshu, and all the very best.

Thank you, Bharat.

Thank you for the opportunity. Am I audible?

Please. Please go ahead.

Good afternoon, sir. Congratulation on delivering a resilient set of numbers.

I had a couple of questions. First on the acquisition.

Sir, would it be possible to call out, let's say in euro terms, what was the YoY growth of Plan1 Health and CTF and EBITDA margin for this quarter?

Deepak, I'll have to separately touch base with you on that. I don't recall that number immediately.

Okay. Sir, second, if I look at our exports growth, ex of acquisition in Q1 roughly as per my calculation, we have done somewhere around 10 to 11%, which denotes that in 9 months going into this year, we would have to clock more than 15%.

Just wanted to know your thoughts around what will drive this organic export growth in the next 9 months and what's the growth outlook for the renal segment, since in the PPT you mentioned that we are facing some competition due to Chinese dumping? See,

on the export front, I think for us Europe, again because we have done some new customer acquisition, so that seems to be the growth market for us this year. Southeast Asia is also doing very well, I think these are two markets I'll call out for the moment.

US, yes, we are growing, but we don't know what's going to happen if we have 100% tariffs tomorrow or today night, I don't know. It's pretty a fluid situation regarding US.

These are the two important geographies will continue to grow, and I think once the situation in Middle East improves, I think we will see maybe more than 20%, 25% growth from Middle East, because currently everything is stalled and all the orders are still lying at ports or in factories. I think that is something we are looking at.

Export growth should happen, there's no reason it should not happen and we are pretty confident. We have almost 25 new products in pipeline for CE marking, which should come sometime between now and next 3 to 4 months.

That will also add to the basket for increasing the basket for exports. The second question was on?

Sir, I asked on renal segment growth outlook.

Pardon me for that. On the renal side, I think we had a degrowth of around 3% in the first quarter, but I think again you must have heard about government opening a anti-dumping probe, because we were pushing the government to look into the pricing which was dumped by Chinese and most of the Chinese companies are importing into India zero duty using ASEAN FTA.

I think even day before yesterday, there was a ministers meeting and we have also flagged that issue again to the minister, Mr. JP Nadda.

With this anti-dumping probe getting evaluated right now and with an injury margin of 20%, we think that something will happen between now and end of the year, so that's number one on that front. Secondly, we have hired Abhimanyu Hooda which you must have heard in my opening comments.

He comes from strong renal background and probably that will also help us to turn around and work with distribution partners in the country and outside the country to grow that business. Hopefully, this year end we should end with a growth of around 15 to 18% in renal business, maybe close to 20% depending how it goes, but we're pretty confident about this growth.

In spite of all the challenges we face today.

Sir. That's very heartening to hear.

Sir, lastly, if I look at our gross margin, this quarter we have reported multi-quarter high gross margin. I understand that you also mentioned that we have taken some price hike, which could have helped us to rake in this sort of gross margin.

Let's say on a steady state basis, at least in the near term, let's say the 9 months of this fiscal year, how should we look at the gross margin? Should it normalize to that 68, 69% or will it continue to clock above 70% rate?

See, basically, on standalone basis, we should see between 67 to 69%. This is what we have called out also earlier.

Also on the consol basis, we should see further maybe 200, 300 bps improvement because Plan1 Health and CTF operate on higher gross margin. At the end consolidated numbers should look between 71 and 72%, whereas standalone should look between 68

and 69%. Sir.

Very helpful, and all the best.

Thank you.

Thanks for the opportunity. Again on the margin front, on the consol level, overall gross margin you said it is in the range of 71 to 72%, but on the consol level, our other expenditure and personal cost for this quarter is pretty high.

On a annualized basis also, it would be a similar run rate of around 24% of sales in the subsequent quarters?

Yeah. Rashmi, as you mentioned, our guidance for consolidated EBITDA is between 23 to 25%, and we are maintaining that guidance.

As you rightly noticed, the people cost and other expenses are higher in case of our acquisitions, that's reflective of the nature of the business plus the fact both the business are currently scaling up. That's why our consolidated EBITDA margin guidance is lower than our standalone EBITDA margin.

Okay. On sales front, if you just compare organic and inorganic sales for this quarter, inorganic is around ₹73 crores in the export business.

What I understand that, given whatever CY '25 sales you have given for the acquired companies and if you convert it into euro-INR currency, then We are just integrating, right? We have not seen any major growth in the acquired company, that is in the inorganic companies' sales.

We have not seen the pickup yet. Am I correct on this part?

Basically you have to break it down into two parts. Plan1 Health and CTF are two different entities both having their own set of growth journey.

For Plan1 Health, as we had highlighted in our last call as well, they had overindexed exposure to Middle East of about 20-odd percent, so that business is actually currently not growing. In fact, witnessed a degrowth over last year as well.

CTF is growing as per expectation in mid to high single digits and as the synergies kick in, we should be able to increase that further.

Okay. In the coming year, what is the kind of growth we are assuming in case if Middle East problems get resolved for FY '28 from the acquired company?

Yeah. I think on a long-term basis, as you've called out earlier in our acquisition calls as well, these assets on their standalone basis have the ability to grow in high single-digit revenue growth.

With the synergies that we want to drive in through product development, cost reduction, as well as through sales channel expansion, we want this to go into the mid-teens as an aspiration basis, assuming the current geopolitical situation resolves itself over the course of next few quarters.

Okay. Is it better to assume that from next year onwards, when the sales pick up and when things get resolved, we will be able to see the overall EBITDA margin, including this acquired companies to expand at least 100 to 150 basis points?

We haven't given any guidance like this at the moment, Rashmi, I won't be able to comment. Directionally, as this business is scale up and the synergy benefits kick in, we expect the margins of these entities to improve, which will reflect in the consolidated EBITDA margins as well.

Last question, just on the gross debt figure, if you can give that figure and what are the kind of repayments you are expecting this year?

Polymed standalone does not have any debt other than the working capital debt.

Working capital.

Yeah. That amount is about ₹250 crores, which is a revolving credit.

On our international subsidiaries, again Plan1 Health does not have any long-term loan. For CTF, the total loan is about €9 million, of which about €1.5 to €2 million has to be repaid every year.

Sorry, how much?

€1.5 to €2 million has to be repaid every year. Oh,

okay. Thank you.

That's it from my side.

Thank you.

Hi, just a quick follow-up on on what you mentioned to Bharat regarding the overall growth aspirations. If I have to look at a 15% growth on the FY '26 FY '26 figure, right, that gets me to ₹3,000 crores out of a total of of a total of what we may have and the remaining will then come from CTF plus Plan1 Health plus any new acquisitions that we make.

Is that the right way of thinking about that?

Sidharth, you'll have to help me. Where are you doing the calculation from?

If you're looking at standalone numbers only, then you have to also add Plan1 Health into that.

What I'm looking at is ₹1,750 crores excluding Plan1 Health and CTF last year, right, which at 15% for 4 years gets me to about ₹3,060 crores, right? 15%,

sorry, I don't understand, because we've guided for a 2x on a overall basis. Right.

No, what I'm saying is,

I'm saying overall if I look at 2x on 1,875, right, that leaves me with a gap of about ₹690 crores. So, ₹690 crores is essentially Plan1 Health plus CTF plus any new acquisitions.

Is that the broad framework that we should keep in mind?

I think the Polymed standalone business will grow faster than the subsidiaries, directionally, because the European assets are growing at a certain pace, Polymed has been growing much higher pace, I think to assume the same kind of growth may not be accurate. On a consol basis, we are saying obviously 2x, but Polymed standalone will grow faster than the underlying subsidiaries.

Okay.

Got it. Just a clarification on the RM cost.

This quarter, the reason we have the kind of gross margins we do is more due to the inventory that we were carrying plus the price hikes we took, and therefore should one expect some impact in Q2 or that's not really the case?

I think it is a mix of multiple things. Includes price hikes, product mix, as well as the inventory sort of gains.

As Himanshu mentioned early part of the call, we are guiding for more like a 68 to 69% gross margin range on a standalone basis, obviously that would mean that there could be some correction to what we have reported in Q1 as gross margin.

Clear. Thank you.

Overall EBITDA may remain the same depending because of the higher revenue which we have projected for coming quarters.

Very clear, Himanshu. Very clear.

Thank you.

Hi, I wanted to know what is the tariff impact from the US you're estimating for financial year 2027?

Which tariff impact?

See, US tariffs in FY '27?

Yes.

Currently the duty is only 10%. If it remains where it is today, then I think we still have a good pathway, but if any changes happen, then it may impact the business.

US exposure is not very big. This year also, our exports to US will be close to between $3.5 to $4 million, it should not be a big issue today, if anything happens in the US.

All right, thank you.

Hi, thanks for the follow-up. Sir, if we were to break up the overall employee expenses and other expenses, how much portion of that would be fixed, and how much would be variable as a percentage of sales?

We have around 24% as a percentage of sales coming from employee expenses, and other expenses is also closer to 24%. If you can just help us.

Yeah.

I don't that breakup, unfortunately, we won't be able to give you an answer right now on this.

Okay. Just I wanted to understand how much is the operating leverage which can still play out on a longer-term basis, not just one, two quarter or one or two years.

Just wanted to understand on a very long-term basis, on a 3 to 4-year basis, how much could be the operating leverage that can play out?

Yeah. As you understand, we are a manufacturing company, we have a lot of blue-collar workers who are involved in production, and that's also a very, very reasonable part of our total employee costs which you see on a consolidated basis.

That piece remains as variable. Rest all is fixed, obviously subject to productivity gains.

Within the staff also, there is a fixed portion plus a variable portion subject to performance. It's a mix of things, it's tough to give a very ballpark number right now on the call.

Okay. Sure.

We'll take it offline. Thank you.

Hi. Am I audible?

Yes, Girish, please go ahead.

Thank you for giving me the opportunity. Himanshu, you in the beginning, you outlined Strategy 3.0, Vision 2030, that was very helpful.

As you mentioned, we are planning to double the revenue by 2030 by both organic as well as inorganic means. Given the fact that we are now transitioning or we have already transitioned from being product-focused to being therapy-focused, if my understanding is correct, are we looking to enter any new therapies or we want to expand within the given therapies which we are already operating in?

Girish, I'll answer it straightaway. See, currently, we have just started these therapies, it was just started, maybe some were started last year or some a year before that.

These are very, very new. If you remember historically, our infusion business is 30-year-old business.

It takes time to mature any therapy, and there are a lot of regulatory roadblocks, which prohibit you from even moving out of the country, because these are mostly critical devices, Class III devices. It takes very much, much longer to register most of these products.

Sometimes it takes around 2, 3 years to register a product and do clinical trials. I think we have enough on our plate right now with the existing businesses, and I don't think we'll be ready to launch anything new substantially in next few years.

Given the existing therapies which we are present in, would it be safe to assume that we cover almost 60, 65% of the consumables used in the hospitals?

I don't think so, Girish. The market is very huge today.

If you look at consumable market, there are many other therapies like peripheral vascular, neurology, urology, there are so many other therapies which let's say endosurgery. There are many, many therapies which we don't cover, gastroenterology.

There are many big therapies we are not covering today. A lot of potential across different verticals, but again, it will take time to build up portfolio of products, and as we move along, I think next few years, definitely there is some work happening in the pipe, but I cannot disclose what we are going to do in next 2, 3 years on this call basically.

It's impossible.

Right. I think you mentioned sometime that we are seeing some bounce back in the Europe business, probably because of the inventory normalization.

Could you comment on that, and also give some idea of the working capital cycles? Have we seen any improvement in that?

On the Europe side, we have already seen a growth of around 17% in quarter one compared to the previous year. I think the demand has come back.

Also, we have added some new customers, there's some customer acquisitions also. I think Europe seems to be in a pretty safe and good place.

We are back with the growth in European market. On the working capital cycle, I think the cash conversion is still in the same level.

In March, it was 140 days, currently it is also in similar range of 140 days.

Okay. Do we expect that to improve going forward?

Sorry, Girish, can you repeat that again, please?

Do we expect that to improve going forward, the cash conversion cycle?

I think it depends, but I would suggest that currently we should read it like this. Hopefully, maybe as time progresses and global situation normalizes, I think we may see some improvements, because of high oil prices, also most of the export markets are little choppy because of hard currency not available in time in many markets where we operate.

Now as probably oil prices stabilize, things will change and improve. Hopefully, the cycle should improve, but I don't have any definitive answer today, but hopefully it will improve.

Girish, if I could just add to what Himanshu said, given the current geopolitical situation and the war going on, the time for getting the product to the customer has also increased, which does tend to put pressure on recovery cycle, because you can start getting your cash flows only once the product reach, right? Given that situation, it's tough to give a forward-looking guidance on this at this point of time.

Understood. Thank you, and all the best.

Thank you. Thank you very much, Girish.

Thanks for the opportunity. I just have one question.

From the portfolio, I see that most of the products are the existing products with some other medtech companies, like we don't produce something new. Do we have anything in plan that you are making something entirely new which is not currently existing with other medtech providers?

See, basically, if you see, Polymed has 399 patents, and I think we have also disclosed that in the presentation we put out. Polymed has a lot of products which have breakthrough technology.

I don't know who we are comparing with. A lot of companies do copy our products.

Polymed is a market leader in infusion therapy and a lot of other therapies we operate on, and that's the reason we are able to make that kind of margin which other companies don't make. This industry basically works on two different parameters.

One is a product performance where we have a global leadership there, and then where our products are going to 125 countries, because this is based on performance, nothing works on price, and second is ability to add innovative ideas on the existing product. The products may look similar when you look from a catalog perspective, but when you use them or when a user sees, basically which is a clinician or a doctor, they will see the differentiation in the product.

Okay. Thank you.

Those patents are worldwide patents, right?

Sorry, sir. Can you repeat again, sir?

Means the coverage of those patents, it's not some region basis, right? It is a global patent.

No,

the patents are global patents. Patents are global patents.

Okay. Thank you.

Thank you, sir.

Thank you. I just wanted to add one question.

Himanshu, you mentioned about the new facilities getting operationalized, I think one you mentioned was in Noida, the other one in Faridabad. Any timeline

We are not able to hear very clearly. Can you please repeat the question?

Maybe you're on a speakerphone, I'm not able to understand very clearly.

Okay. Can you hear me now?

Much better, sir.

I was mentioning that during the call, you mentioned about two new facilities coming online. One is at Noida and the other one at another place.

Could you give us some timelines when are they expected to become operationalized and which particular therapy, if we have decided, which therapy they will be focusing on? Basically,

the one coming up in Faridabad, Palwal area would be basically focusing on orthopedics and transfusion business, which we are expanding right now, and some part of extra capacity expansion of infusion will also go there. Talking about Noida, we are already planning to expand our cardio business basically out of the Noida facility.

Will they come online in this financial year?

The Faridabad, Palwal facility should come online by March '27 most probably, that's the timeline we are looking at, first quarter of next year. The Noida facility will come live in quarter first maybe commercially, quarter one of FY '28.

Okay. Thank you.

All the best.

Thank you, everyone, and thank you for all your questions, and I hope we have been able to answer them. Let me assure you again to all the investors that the company is on a growth path.

We have made certificate changes in the portfolio. Our overdependence which was there on the vascular segment is now only 50%.

There's a lot of diversification which has happened, and we have moved more from low, medium technology to high-technology business, and I think that is where we are shaping up. Also, we are adding more electronics in the business where our dialysis machine, our IV therapy is run on machines, I think we are diversifying into higher category of business where they are more platforms than products itself.

That's the change we're bringing in the portfolio, and that's why we see a growth. Most of the newer products we are developing today are import substitution products, and definitely that will help us to take more market share as insurance penetrates deeper into the hospital sector, Ayushman Bharat penetrates deeper into the hospital sector in India.

I think that will change the landscape where hospitals will look at more quality-oriented, cost-effective devices versus imported devices which you are using today, which are more expensive. These are the changes we see in the industry, and thankfully, this industry continues to grow at a good pace in India, the healthcare industry, and I think as that industry grows, medical devices industry, medical technology industry will, as a one of the partners of the industry, will grow in the same pace or even higher.

Thank you again for your time, and look forward to talk to you soon.