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Key Highlights • Date of Call: August 6, 2024 • Submission Date: August 13, 2024 • Participants: Executive Director Sunil Chandra, CFO Narasimha Raju
Financial Performance • Revenue Growth: • Year-on-year growth: 29.1% • Organic growth: 19.6% • Consolidated Revenue: INR 156 crores • EBITDA: INR 61 crores (39% margin) • Profit After Tax: INR 31 crores
Operational Developments • New Hubs: • Kolkata hub operations successful • Ongole hub commenced operations • Plans for nine new locations confirmed • Merger Plans: Merger with subsidiary Medinova to optimize operations
Growth Sustainability • Management Insights: • Confidence in sustaining growth from existing and new centers • Long-term growth reliant on adding new centers • Pipeline of nine new hubs in the next 12-18 months
Market Dynamics • Ongole Region: Balanced demand for pathology and radiology services projected at 50-50 mix at maturity.
Cost Management • Cost Concerns: • Rising equipment costs but healthy margins expected (39-40% EBITDA) • Employee expenses contributing to cost increases
Brand and Expansion Impact • Brand Change: Temporary revenue dip due to system changes, with recovery expected. • Hub Expansion: Focus on hub expansion with nine hubs planned for FY'25.
Financial Reporting Changes • Ind AS 116 Impact: • 2.5% decrease in PBT • 1.2% decrease in PAT compared to Indian GAAP
Revenue Insights • Revenue Split: • PH segment: 55-60% from pathology, remainder from radiology • Wellness revenue slightly higher than average (17-18%) • Patient Volume Growth: • Significant growth driven by Andhra and Telangana, particularly Hyderabad.
Conclusion • Management's Outlook: • Confidence in maintaining EBITDA margins despite expansion • Positive growth trends across new and existing centers • Future Projections: • Expected breakeven for new hubs within a year • Continued focus on enhancing patient volume and revenue per patient.
Earnings Overview • Date of Call: May 9, 2024 • Financial Results: • Q4 consolidated revenue: INR 155 crores • EBITDA: INR 63 crores • Profit after tax: INR 34 crores • Year-on-year revenue growth: 28.3% (18.5% organic) • Proposed dividend: INR 1 per equity share for FY '24
Growth and Expansion • Wellness Segment: Contributed 14% to revenue • Geographic Expansion: • Significant progress in Pune and Kolkata • Plans to establish 10-11 hubs over the next two years • Two additional hubs signed in Kolkata, with break-even expected in two months
Volume and Revenue Growth • Key Regions: • Hyderabad: 13.5% to 14% revenue growth, driven by 11.5% to 12% volume increase • Tier 2 regions: 30% to 40% growth due to capacity expansion • Future Expectations: Confidence in maintaining double-digit growth, with 12% to 13% attributed to volume increases
Margin Strategies • Current EBITDA Margins: Approximately 40% • Impact of Expansion: Slight fluctuations expected, but core margins to be maintained
Capital Expenditure and Investments • Planned Investment: INR 200 to 220 crores over the next two years, primarily for Pune • Goodwill and Intangible Assets: No expected impairment due to strong revenue projections
Inorganic Growth Opportunities • Openness to Acquisitions: Dependent on finding suitable assets • Focus Areas: Southern and eastern regions, no immediate northern expansion plans
Hub-and-Spoke Model • Importance of Planning: Spokes to be planned based on population density • Margin Expectations: Core margins around 40%, with minimal overall dilution from new centers
Customer Experience and Operational Efficiency • Patient Wait Times: Longer for high-end procedures; efforts to reduce wait times through digital solutions • Digital Initiatives: Launch of an app and e-commerce site for online bookings
Conclusion • Management's Outlook: Confidence in growth and expansion strategies, with a focus on maintaining service quality and affordability.
Earnings Call Overview • Date: February 6, 2024 • Participants: • Suprita Reddy (Managing Director) • Narasimha Raju (CFO) • Bhavesh Gandhi (Moderator, YES Securities)
Financial Highlights • Q3 Performance: • Consolidated revenue: Rs. 133 crores (17% increase YoY) • Non-COVID revenue growth: 18% • EBITDA: Rs. 52 crores (18% YoY growth) • Profit After Tax (PAT): Rs. 26 crores (21% PAT margin) • Nine-Month Performance: • Consolidated revenue: Rs. 393 crores (16% growth) • EBITDA margin: 40.2%
Business Expansion • New hub centers launched in Karnataka and Kolkata. • Acquisition of PH Diagnostic in Pune, contributing Rs. 1.29 crores in revenue post-acquisition. • Focus on quality with NABL accreditation for all labs.
Volume and Revenue Growth • 18% volume growth reported, with 17% from the parent company. • Average Revenue Per Patient (ARPP) growth strategy focused on volume rather than price hikes.
Future Projections • Expected growth of 14% to 15%, primarily driven by volume. • Plans to open 15 new centers, with some delays anticipated.
Geographic and Operational Insights • Kolkata center requires a monthly revenue run rate of 65-70 lakhs to break even. • Strategic focus on operations in West Bengal and Pune, with no immediate expansion in Karnataka. • Prioritization of Pune expansion due to existing infrastructure.
Pricing Strategy and Cost Management • Long-term contracts with reagent suppliers to stabilize material costs. • Overall price increase for tests around 1-1.5%, influenced by currency fluctuations.
Conclusion • Management remains open to further inquiries, emphasizing ongoing growth and strategic expansion plans.
Earnings Overview • Date of Call: November 8, 2023 • Revenue Growth: 15% year-on-year, reaching ₹139 crores for Q2. • Non-COVID Revenue: Grew by 18%, primarily from B2C segment (95% of total revenue). • EBITDA Margin: Healthy margin of 41.3%. • Profit After Tax: ₹33 crores.
Business Expansion and Digital Initiatives • New Hub: Kolkata hub established; ongoing upgrades to existing facilities. • Digital Engagement: Emphasis on digital initiatives to enhance customer interaction. • Future Plans: Commitment to open 15 new centers by year-end.
Segment Performance • Pathology Growth: Over 15% growth excluding COVID-related revenue. • Radiology Growth: Faster growth due to new hubs; gross margins favor radiology. • Kolkata Hub: Projected break-even in 11-12 months; plans for additional hubs.
M&A and Cash Reserves • Cash Reserves: ₹288 crores available for potential M&A aligned with B2C model. • Acquisition Strategy: Open to acquiring assets that fit their business model.
Profitability and Margin Maintenance • Mature Centers: Strategies to maintain margins despite volume stagnation. • Revenue Growth Potential: 70-75% of centers still have growth potential.
Competition and Market Position • Radiology Competition: Integrated model and established reputation to sustain growth. • Pathology Investments: Ongoing investments in specialized tests, especially oncology.
Wellness Services • Contribution to Revenue: Wellness services account for 12-13% of total revenue. • Growth Challenges: Facing pricing pressures but committed to expanding this segment.
Future Developments • New Centers: Upcoming center in Gulbarga, Karnataka, with advanced facilities. • Hub Expansion: Eight hubs planned for FY24 and FY25 across various regions.
Conclusion • Management's Closing Remarks: Expressed gratitude and invited further inquiries.
Conference Call Details • Date: August 10, 2023 • Submitted to: National Stock Exchange of India and BSE Limited • Key Participants: Managing Director Suprita Reddy, CFO Narasimha Raju
Financial Performance Highlights • Consolidated Revenue: INR 121 crores (16% increase YoY) • Non-COVID Revenue Growth: 19.2% YoY • EBITDA Margin: 40% • Profit After Tax: INR 26.4 crores
Operational Developments • New Hubs: Successful operational breakeven at Tirupati; new hub inaugurated in Kolkata. • Future Plans: Targeting four new hubs annually, with upcoming openings in Mahabubnagar and Gulbarga.
Integrated Healthcare Model • Evolution: Combining radiology and pathology services since 1981. • Wellness Packages: Increased demand post-COVID, priced between INR 450 to INR 18,000.
Market Expansion Strategy • Kolkata Focus: Plans to expand presence over the next 4-5 years, aiming for significant market development. • Growth in Andhra Pradesh and Telangana: Continued focus on these regions.
Technology and Equipment • Tirupati Center: Equipped with advanced technology (gamma camera, 3 Tesla MRI) leading to rapid EBITDA breakeven. • Kolkata Center: Positive initial feedback; expected EBITDA breakeven within 12 months.
Competitive Landscape • Inorganic Growth: Evaluating opportunities cautiously; stable competitive scenario with no significant new entrants. • Pricing Strategy: Minimal impact from online aggregators; price increases account for only 1% of revenue.
Conclusion • Management expressed optimism about future performance and sustainable expansion, inviting further inquiries from attendees.
Earnings Call Overview • Date: June 6, 2023 • Focus: Q4 and FY 2023 financial results • Key Executives: CEO Suprita Reddy, CFO Narasimha Raju
Financial Performance Highlights • Non-COVID Revenue Growth: • Q4: 22.4% year-on-year • FY23: 14.7% • Consolidated Revenue: • Q4: INR 121 crore (99% from non-COVID) • FY23: INR 459 crore • Profit Metrics: • EBITDA margin: 40.6% • Profit after tax: INR 27 crore for Q4 • Dividend: 100% recommended for FY23
Expansion Plans • New Centers: • 15 centers planned, including 4-5 large hubs in new locations (e.g., Kolkata) • Focus on smaller spokes in areas like Rajahmundry • Tirupati Center: • Promising initial trends, projected annual revenues of INR 17-20 crore
Capital Expenditure and Strategy • Anticipated Capex: INR 75-80 crore for the upcoming year • Digital Initiatives: Investments in mobile app and e-commerce website • Growth Rate Target: Consistent growth of around 15%
Market Insights • Test Offerings: Approximately 2,700 tests available • Market Size: Outpatient diagnostic market in Andhra Pradesh and Telangana estimated at INR 6,000 crore • Market Share: Less than 10%, indicating significant growth potential
Competitive Landscape • Kolkata Market: Limited organized competition; focus on advanced diagnostic technology • Pricing Dynamics: Input costs rising, but competitive environment limits widespread price increases
Operational Considerations • Hub and Spoke Strategy: Hubs with both pathology and radiology services for comprehensive testing • Breakeven Strategy: Faster breakeven projected for new hubs due to integrated services
Future Projections • Volume Growth: Anticipated 15% growth primarily from volume increases • Patient Volume Concerns: Recent declines attributed to reduced COVID testing; overall test volumes expected to improve
Conclusion • Management expressed confidence in future performance and expansion plans, emphasizing a commitment to high-quality standards and enhanced patient experience.
Earnings Overview • Date of Call: February 14, 2023 • Consolidated Revenue for Q3: Rs. 113 crore • Non-COVID Business Growth: 9.8% • New Centers Opened: 5 • EBITDA Margin: 39.1% • Profit After Tax: Rs. 16.4 crore
Future Growth Strategy • Expansion Plans: Focus on Tier-II and Tier-III cities • New Diagnostic Center: Flagship facility in Tirupati (15,000 sq. ft.) • Market Potential: Lack of organized players in the area
Market Evaluation Metrics • Key Factors: Availability of doctors, population size, existing medical infrastructure • Patient Capture Strategy: Targeting patients currently seeking services in larger cities
Growth Metrics • Three-Year CAGR for Non-COVID Revenue: 8.5% • Growth from December 2019 to December 2022: 11.5% • Center Expansion: Increased from 86 to 117 since IPO
Competitive Landscape • Increased Competition: Acknowledged but many new entrants may struggle • Concerns on Growth Rates: Potential pressure on performance due to market dynamics
IT Investments • Recent CAPEX: Rs. 2 crore for new ERP system and mobile app • Mobile App Launch: Delayed for quality assurance, expected in two weeks
Pricing Strategy • Clientele Sensitivity: Not primarily price-sensitive; pricing strategy remains unchanged • Discounts for New Centers: 10% to 15% lower than Hyderabad locations
Wellness Services • Average Ticket Size: Rs. 2,700 for wellness packages • Price Range: Rs. 1,200 to Rs. 12,000
Capital Expenditure Plans • Total Planned CAPEX: Rs. 115 crore for hubs and spokes, Rs. 15 crore for radiology equipment • Funding Source: Internal cash accruals, healthy cash balance of over Rs. 240 crore
Conclusion • Management's Closing Remarks: Thanked participants and invited further inquiries.