Krsnaa Diagnostics Limited

Rajendra Mutha

CHAIRMAN & WHOLE TIME DIRECTOR

Pallavi Bhatevara

MANAGING DIRECTOR

Yash Mutha

WHOLE TIME DIRECTOR

Pawan Daga

CHIEF FINANCIAL OFFICER

Bharat Celly

EQUIRUS SECURITIES

10 billion

t, management and even prevention of diseases. Today, the Indian diagnostic market is valued at $10 billion and projected to a CAGR of 14% in the next five years, with COVID-19 behind us, there are other k

14%

iseases. Today, the Indian diagnostic market is valued at $10 billion and projected to a CAGR of 14% in the next five years, with COVID-19 behind us, there are other key fundamental drivers of diagno

rs,

dian diagnostic market is valued at $10 billion and projected to a CAGR of 14% in the next five years, with COVID-19 behind us, there are other key fundamental drivers of diagnostic industry, such as la

1.3 billion

d us, there are other key fundamental drivers of diagnostic industry, such as large population of 1.3 billion people, rising per capita income, allowing increased affordability and need to access better healt

Rs. 113 crore

quarter, In Q1 FY2023, Krsnaa’s core business of radiology and pathology, registered Revenues of Rs. 113 crores, a growth of 10.5% on a year-on-year basis, and 6% on a sequential basis. This was practically a

10.5%

naa’s core business of radiology and pathology, registered Revenues of Rs. 113 crores, a growth of 10.5% on a year-on-year basis, and 6% on a sequential basis. This was practically a non-COVID quarter an

6%

pathology, registered Revenues of Rs. 113 crores, a growth of 10.5% on a year-on-year basis, and 6% on a sequential basis. This was practically a non-COVID quarter and the COVID revenue declined to

0.3 crore

equential basis. This was practically a non-COVID quarter and the COVID revenue declined to a mere 0.3 crores compared to 30 crores in the comparative quarter in the previous year. Our EBITDA for the quart

30 crore

as practically a non-COVID quarter and the COVID revenue declined to a mere 0.3 crores compared to 30 crores in the comparative quarter in the previous year. Our EBITDA for the quarter stood at Rs. 28 cro

Rs. 28 crore

o 30 crores in the comparative quarter in the previous year. Our EBITDA for the quarter stood at Rs. 28 crores with margins of 25% and net profit of Rs. 14 crores with margins of 12.6%. The EBITDA margins wer

25%

e quarter in the previous year. Our EBITDA for the quarter stood at Rs. 28 crores with margins of 25% and net profit of Rs. 14 crores with margins of 12.6%. The EBITDA margins were slightly lower com

Rs. 14 crore

us year. Our EBITDA for the quarter stood at Rs. 28 crores with margins of 25% and net profit of Rs. 14 crores with margins of 12.6%. The EBITDA margins were slightly lower compared to the previous quarter du

“As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.”

“Today, the Indian diagnostic market is valued at $10 billion and projected to a CAGR of 14% in the next five years, with COVID-19 behind us, there are other key fundamental drivers of diagnostic industry, such as large population of 1.3 billion people, rising per capita income, allowing increased affordability and need to access better healthcare services, emergence of lifestyle diseases, and increase awareness of preventive health checkups.”

“We were already present in Maharashtra at more than 400+ locations through the X-Ray accelerated radiology project and with the new CT scan project, it will help us further consolidate our market positioning in the entire state.”

“Presently, the agreement execution process has been initiated on all these projects and the implementation of these equipments is expected to be completed over the course of next 9 to 12 months and the contributions can be expected from the next year onwards.”

“We expect all the centers mentioned in the RHP to be operationalized by the end of the third quarter of this current fiscal.”

“Our rate list have also been finalized and the official press release will be made during this month by our COO, Dr.”

“All details regarding the rates, the go-to-market strategy will be disclosed in the press release to be done in this month.”

“We would like to also inform that we will be launching our Center of Excellence in Genomics in the month of September.”

“This will help create efficient, automated business processes to increase productivity, as well as provide the team with relevant data points to enhance customer engagement with an overall aim to improve the customer experience and satisfaction.”

“Looking ahead, we are focused on timely implementation of the project, which would also augment step-up growth coupled with maturing of basically launched centers and the further expansion of B2C business.”

Yash Mutha

18

Moderator

4

Utkarsh Maheshwari

4

Pawan Daga

3

Nitin Agarwal

3

Aditya Khandelwal

3

Prashil Shah

2

Chinmaya Bhargava

2

Chetan Phalke

2

Shiv Prasad

2

Yash Mutha

Krsnaa Diagnostics Limited Aug 05, 2022 Ladies and gentlemen, good day and welcome to the Krsnaa Diagnostics Q1 FY23 Earnings conference call hosted by Equirus Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Bharat Celly from Equirus Securities Private Limited, thank you and over to you sir. Good evening, everyone, and a very warm welcome to Krsnaa Diagnostics Q1 FY23 earnings call hosted by Equirus Security. On the call today we have the presenting Krsnaa Diagnostic Management: Mr. Rajendra Mutha - Chairman Ms. Pallavi Bhatevara, -Managing Director, Mr. Yash Mutha - Executive Director, and Mr. Pawan Daga - Chief Financial Officer. To start wit

Pawan Daga

Thank you Yash. A very good evening to all the attendees. I will present financial highlight for the quarter ended June 2022. In the first quarter, the company registered a Total Revenue of Rs. 113 crores, an increase of 4.3% on a substantial basis from Rs. 108 crores in Q4 FY22. The growth is led by our core business comprising of radiology and pathology, which registered revenue growth of 10.5% on a year-on-year basis and 5.9% on a sequential basis. The COVID-19 revenue declined from Rs. 31 crores in Q1 FY22 and Rs. 2 crores in previous quarter to Rs. 0.3 crores in Q1 FY23. Operating EBITDA for the quarter stood at Rs. 28 crores flat compared to the previous quarter. EBITDA margins were 25.1% in Q1 FY23, slightly lower compared to 26.2% in previous quarter. The EBITDA margins were impacted due to additional cost incurred for onboarding a team to operate and run the newly launched centers. The margins are expected to improve in upcoming quarter with the maturity of the centers. Profit

Prashil Shah

Thank you. So, we have seen good growth on the number of patients timed about 50%, but we are not seeing anything close to that number in terms of

Yash Mutha

Krsnaa Diagnostics Limited Aug 05, 2022 revenue growth. Majority of the growth in patients was driven by pathology and tele-reporting. So I mean, what is happening with the realization with tele- reporting, quarter-after-quarter we are seeing drop in realization per patient on per test basis. So, when do we see this bottoming out? What is our take on these realizations, especially the tele-reporting side? So, basically, if you see the tele-reporting side, the reason why the realization is lower compared to the previous quarter is because one of the projects that we had, which was Assam, which we rebuilt when it came for re-tendering and we had quoted a lower rate because the investments that we already had made were recovered and this allowed us to continue extending the revenue and that is one of the reasons why the realization is a bit lower. So, how much of an impact would that particular project in Assam would have caused for the realizations to come down so sharply quarter-on-quar

Prashil Shah

Okay, and just a last follow up on this. So, given that now we have extended a contract at these new prices, how do we see these realizations bouncing back?

Chinmaya Bhargava

Krsnaa Diagnostics Limited Aug 05, 2022 Will they sort of go up from 85 per patient or how do we see this bouncing back. So, what has happened is, Assam being a very stable project, which is continuously driving the volumes, the other tele-reporting projects, for example, if you see we have tele-reporting in Jammu, we have in Maharashtra, we have in UP. As these tele-reporting projects start maturing, the overall aggregate revenue per patient will increase because some of these other projects have a higher rate and that will help us also increase the realization per patients going forward. Like Maharashtra, we have almost 400 plus centers, Himachal Pradesh and Jammu. When all these projects start maturing, Maharashtra is the latest one, which was added, as it starts maturing, we will definitely push the realization per patient going onwards. Thank you. Next question comes from the line of Jainil Shah from JM Financials, please go ahead. Thank you for the opportunity. My first question