Let me talk about margins because they continue to contract. On a year-on-year basis, it has fallen below the 30% mark. Even gross margins have dipped slightly on a sequential basis. What exactly is impacting your margins? What are the steps that have been taken by you to mitigate this impact going ahead and would price hikes be a part of it?
Year-on-year, our non-Covid business has recovered very strongly. We grew 20% year-on-year in our non-Covid business and of course we only grew 9% year-on-year overall and that was because of Covid coming out of the base. Some of that is reflected in our margin profile as well and that is the effect you see there. But going forward, as Covid is out of the base, with this 20% non-Covid revenue performance in the last quarter, I am quite bullish about the next few quarters as we see clean quarters where Covid is not in the base.
You managed to take some price hikes in the recent quarter and you are not looking at taking any more price hikes. So it is fair to assume that margins will be around this 30% mark going forward?
Yes that is what I have been guiding in all our investor calls that margin will be in that 30% ballpark. As I said in the last quarter, given that we have a lot of dollar exposure on our raw materials, we saw some price hikes from our vendors but we were able to pass them through into the market to maintain the price at the margin.
But then there are some reports doing rounds which suggest that PharmEasy might be looking at selling some stake in Thyrocare. Could you clarify if something is on the cards?
At this point at least, at Thyrocare, we are not aware of any such discussion nor have we been approached by anyone evaluating this seriously. So at this point. I would say at least I am not aware of any such discussions.
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