Overview
• Date of Call: August 7, 2024
• Submission Date: August 13, 2024
• Key Speakers:
• Dr. Arvind Lal (Executive Chairman)
• Dr. Om Prakash Manchanda (Managing Director)
• Shankha Banerjee (CEO)
• Ved Prakash Goel (Group CFO)
Company Highlights
• 75th Anniversary: Emphasis on quality and accessibility in diagnostics.
• Market Growth: Anticipated growth in the Indian diagnostics market.
• Integration: Ongoing integration with Suburban Diagnostics.
Financial Performance
• Revenue Growth: 11.3% year-over-year increase to Rs. 602 crore.
• Patient Metrics:
• Patient volumes up by 5.5%
• Sample volumes up by 9.6%
• Key Financial Metrics:
• Revenue per patient: Rs. 833
• EBITDA: Rs. 170 crore (16.2% growth)
• PAT: Rs. 108 crore (29.1% growth)
• Dividend: Interim dividend of Rs. 6 per share.
Strategic Initiatives
• Expansion Plans: Establishing 20 new labs in Tier-3 and Tier-4 towns.
• Swasthfit Brand: Significant revenue contribution and growth potential.
• Digital Infrastructure: Focus on enhancing patient service outcomes.
Market Insights
• Competition: Competitive intensity remains, but visibility has decreased.
• Patient Behavior: Increased demand for higher-order tests in smaller towns.
• Specialized Services: Medical Center of Excellence initiative in development.
Q&A Highlights
• Margins: Q2 expected to show strong margins; focus on annualized margins.
• Specialized Tests: Contribute 23% to revenue; growth potential noted.
• Regional Revenue: Delhi and NCR contribute 31%-32% of revenue.
• Tax Rate: Higher effective tax rate of 28% due to deferred tax adjustments.
• Future Growth: Confidence in surpassing last year's performance for FY25.
Conclusion
• Management expressed gratitude for participant support and confidence in growth trajectory and margin improvements.

Key Management Speakers
• Dr. Arvind Lal (Executive Chairman)
• Dr. Om Prakash Manchanda (Managing Director)
• Shankha Banerjee (New CEO)
Company Highlights
• Commitment to Quality and Accessibility
• Marketing campaign "Bharat Ka Vishwas"
• Focus on Tier-3 and Tier-4 markets
• Successful integration with Suburban Diagnostics
• Financial Performance
• Q4 FY24 revenue: Rs. 545 crore (11.1% YoY increase)
• Full-year revenue: Rs. 2,227 crore (10.4% increase)
• PAT growth: 50.3%
• Dividend announced: Rs. 6 per share
Strategic Initiatives
• Expansion Plans
• New hub labs in North India and Maharashtra
• Enhancing lab infrastructure in Western and Southern India
• Franchisee-driven collection network in lower-tier cities
• Swasthfit Program
• Contributed 24% to total revenues
• Focus on bundled testing packages
Market Dynamics
• Growth Potential
• Significant growth in Northern India (Uttar Pradesh and Bihar)
• Bundled tests expected to represent 30%-40% of the portfolio
• Competitive Landscape
• Stable competitive intensity in Delhi NCR
• Confidence in Suburban Diagnostics' growth potential
Future Outlook
• Volume Growth Strategy
• Focus on increasing patient and sample volumes
• No planned price increases for specialized or routine tests
• Targeting 6-7% increase in samples per patient
• Investment Focus
• Plans to invest in Tier-3 and Tier-4 towns
• Consideration of inorganic growth opportunities in underrepresented markets
Closing Remarks
• Management expressed optimism for future growth and encouraged further inquiries from participants.

Company Performance
• Date of Call: February 7, 2024
• Key Management: Dr. Arvind Lal (Executive Chairman), Dr. Om Prakash Manchanda (Managing Director)
• Revenue Growth: Rs. 539 crore, a 10.1% increase year-over-year
• Patient Engagement: 6.7 million patients and 18.6 million samples tested
Market Dynamics
• Sector Growth: Driven by non-communicable diseases and preventive healthcare focus
• Strategic Positioning: Expansion into Tier-2 and Tier-3 markets with competitive pricing
• Bundled Testing Services: Successful introduction of "Swasthfit" brand contributing significantly to revenue
Financial Highlights
• EBITDA Increase: 24.6% rise
• PAT Growth: 53.3% increase for the quarter
• Dividend: Second interim dividend of Rs. 12 per share approved
Challenges and Opportunities
• Industry Slowdown: Acknowledged by Dr. Manchanda due to customer fatigue and hospital competition
• Focus Areas: Expanding into smaller towns and enhancing market access
• Growth Drivers: Emphasis on Tier-3 and Tier-4 markets for future growth
Franchisee and Revenue Tracking
• Franchisee Profitability: Tracking revenue per franchisee to ensure profitability
• Multi-Franchise Operators: Approximately 300-400, primarily in larger cities
• Post-COVID Trends: Revenue per franchisee has not declined due to bundling effects
Operational Efficiency
• Gross Margins: Improved operating efficiencies leading to higher margins
• Volume Growth: Initiatives in Tier-3 and Tier-4 geographies to boost volume
• Pricing Strategy: Focus on volume growth over price increases
Strategic Investments
• Technology and Infrastructure: Investing in lab infrastructure, particularly in Tier-3 and Tier-4 cities
• New Labs: Plans to establish 20 new labs by March-April
• Mergers and Acquisitions: Open to M&A as market conditions stabilize
Conclusion
• Long-term Focus: Emphasis on sustainable growth and patient engagement
• Cash Reserves: Approximately Rs. 800 crore available for reinvestment
• Closing Remarks: Gratitude expressed to participants, with an invitation for further questions.

Company Performance
• Date of Call: November 2, 2023
• Key Speakers: Dr. Arvind Lal (Executive Chairman), Dr. Om Prakash Manchanda (Managing Director)
• Revenue Shift: COVID-related revenues now only 2% of total revenue.
• Consolidated Revenue Growth: 13.2% CAGR since FY20.
• Strategic Priorities:
• Expansion into Tier-III and Tier-IV markets.
• Enhancing service levels.
• Focus on high-end tests.
Q2 FY24 Highlights
• Revenue: Rs. 601 crore, a 12.6% increase YoY.
• Patient Volume: Served 7.5 million patients (+5.2%).
• Sample Testing: 21.2 million samples tested (+11%).
• Key Growth Drivers:
• Market activation.
• Investments in hub labs.
• Expansion in Tier-III towns.
• Successful marketing campaigns.
• 'SwasthFit' initiative.
Financial Highlights
• EBITDA: Rs. 178 crore.
• PAT: Rs. 111 crore.
• Profit Margins: Improved with a strong cash position of Rs. 780 crore.
• Future Plans: Further expansion in Tier-III markets and potential cash deployment for growth.
Cash Utilization Strategy
• Accumulated Cash: Approximately Rs. 800 crore.
• Three-Pronged Approach:
• Business investments.
• Dividend payments.
• Scouting for acquisitions, especially in South India.
Non-COVID Revenue Insights
• Non-COVID Revenue: Rs. 589 crore, with only Rs. 12 crore from COVID tests.
• Volume Growth: Positive trends in non-COVID volumes with a 13% growth rate for the quarter.
Suburban Market Performance
• Marketing Efforts: Increased traction in Mumbai with a franchisee-driven model.
• Potential Contribution: Suburban expected to significantly contribute to overall business.
Market and Competitive Landscape
• B2B vs. B2C: Emphasis on an omni-channel approach.
• Dengue Impact: Increased demand for bundled fever tests, but minimal revenue impact from Dengue.
• Gross Margins: Reached 79.6%, but not expected to be sustainable long-term.
Cost Efficiency and Margin Expectations
• Cost Structure: Focus on further cost efficiencies.
• EBITDA Margins: Recent margins exceeded 25%-26%, but should be viewed cautiously.
• Inflationary Pressures: Rising costs necessitate careful pricing strategies.
Future Outlook
• Volume Growth: Total volume growth of 5.2%, 7.7% excluding RT-PCR tests.
• Key Account Management Program: Enhancing B2B services contributing 25-30% to revenue.
• Market Saturation: Growth remains below pre-COVID levels, with a shift towards Tier-II to Tier-IV towns.
Conclusion
• Management expressed optimism about future investments and technological solutions to improve access in smaller markets.
• Call concluded with thanks and well wishes for upcoming festivals.

Key Management Speakers
• Dr. Arvind Lal (Executive Chairman)
• Dr. Om Prakash Manchanda (Managing Director)
• Bharath Uppiliappan (CEO)
Industry Insights
• Opportunities in India's diagnostic industry are growing.
• Shift towards organized healthcare and preference for branded services.
• Commitment to sustainability and digital infrastructure improvements.
Financial Performance
• Revenue Growth: 7.6% increase to Rs. 541 crore.
• Non-COVID Revenue: Up 9.7% to Rs. 528 crore.
• Patient Visits: Stable with 8% sequential growth in non-COVID volumes.
• Revenue per Patient: Increased by 8.6% to Rs. 789.
• Normalized EBITDA: Rose to Rs. 154 crore with a margin of 28.4%.
• Interim Dividend: Rs. 6 per share announced.
Strategic Initiatives
• New marketing campaign "Bharat Ka Vishwas" to build trust.
• Focus on digital initiatives and geographical expansion, especially in North and East India.
• Bundled test portfolio "Swasthfit" achieved record revenue of Rs. 112 crore.
Expansion Plans
• Targeting growth in Tier-III and Tier-IV cities.
• Plans to add 10-15 labs annually, focusing on synergies with Suburban Diagnostics.
Challenges and Market Dynamics
• Decline in patient visits attributed to a high base from the previous year.
• Increased competitive intensity post-COVID from hospitals and new players.
• Skepticism about industry growth estimates of 5% to 7%.
Cost Management
• Operating expenses declined by 5% despite revenue growth.
• Shift towards collection centers reducing rental costs.
• Anticipated increase in advertising and promotion expenses as margins recover.
Future Outlook
• Emphasis on untapped opportunities in Tier-II and Tier-III markets.
• Gradual increase in volume growth expected, influenced by seasonal diseases.
• Cash reserves of Rs. 877 crore earmarked for organic and inorganic growth, including potential acquisitions.
Conclusion
• Management expressed optimism about future growth and thanked participants for their engagement.

Conference Call Overview
• Date: May 11, 2023
• Submission to: National Stock Exchange of India and BSE Limited
• Key Speakers:
• Dr. Arvind Lal (Executive Chairman)
• Dr. Om Prakash Manchanda (Managing Director)
• CEO Bharath Uppiliappan
Financial Performance
• Non-COVID Revenue Growth:
• 15.5% growth for FY23
• 14.4% year-over-year growth in Q4
• COVID Revenue Decline:
• 80-90% drop in COVID-related revenues
• COVID tests contributed only 2% in Q4
• Revenue Metrics:
• 6.3 million patient visits in Q4
• Revenue of Rs.491 crore
• Normalized EBITDA margin of 26.6% for Q4
• Proposed final dividend of Rs.6 per share
Strategic Developments
• New Initiatives:
• Opening of a new Mumbai Reference Lab
• Upgraded lab information system and AI implementation
• Focus Areas:
• Geographic expansion
• Digital capabilities
• Bundled testing packages (Swasthfit portfolio contributed 22% to Q4 revenue)
Market Dynamics
• Competitive Landscape:
• Intense competition among traditional players
• New entrants scaling back due to funding pressures
• Price Adjustments:
• Price hikes applied to high-end tests
• Minimal pushback from B2B partners
• Price increases expected to affect overall revenue by 2.5%
Future Outlook
• Growth Expectations:
• Mid to high single-digit growth anticipated for FY24
• Positive outlook driven by non-COVID business and new lab initiatives
• Patient Volume Trends:
• Seasonal fluctuations noted, but underlying growth rate of 8%
• Home sample collection accounts for 8-9% of total revenue
Q&A Highlights
• Revenue Mix and Margins:
• No anticipated margin dilution despite revenue mix shifting outside Delhi NCR
• Employee Costs:
• Reductions linked to lower RSU charges and efficiency gains
• Bundled Packages:
• Future growth may rely more on patient volume as expansion moderates
Industry Insights
• IVD Market Growth:
• Estimated CAGR of 10-11% over the next few years
• Potential market size for Indian domestic market around Rs. 60,000 crore
Conclusion
• Executives expressed optimism for future growth, emphasizing strategic initiatives and market adaptability. The call concluded with an invitation for further questions from analysts.

Key Management Speakers
• Dr. Om Prakash Manchanda (Managing Director)
• Mr. Bharath U (CEO)
• Mr. Ved Prakash Goel (Group CFO)
Industry Challenges
• Significant decline in COVID-related revenues (80-85% drop).
• Emphasis on analyzing non-COVID sales over a longer-term period.
• Launch of a new reference lab in Mumbai to enhance competitive position.
Financial Performance
• Total revenue: Rs. 489 crore; non-COVID revenue grew by 9.1% to Rs. 478 crore.
• COVID-related testing revenue: only 2% of total revenue.
• 4% increase in patient volume; 5% rise in revenue per patient.
Strategic Focus Areas
• Expansion of geographical footprint and adaptation to consumer expectations.
• Focus on organic and inorganic growth opportunities, especially in West and South regions.
• Development of specialized high-end tests and centers of excellence.
Suburban Business Transition
• Shift towards a franchised infrastructure, increasing short-term revenue share costs.
• Higher manpower costs justified by unique services (e.g., x-ray, ultrasound).
• Emphasis on driving top-line growth despite initial profitability impacts.
Market Dynamics and Consumer Behavior
• Volume growth has softened; preference for collection centers over traditional labs.
• Caution regarding pricing power in the B2C segment due to competition.
• Swasthfit portfolio growth attributed to factors beyond price, such as trust and timely delivery.
Future Growth Strategies
• Focus on Tier-2 and Tier-3 markets for building equity and growth opportunities.
• Transition from owned infrastructure to a franchise model to enhance market presence.
• Ongoing cost optimization efforts amidst inflationary pressures.
Conclusion
• Management remains optimistic about growth opportunities despite increased competition.
• Balancing cost management with top-line growth is crucial as the company navigates market changes.