Thyrocare Technologies Limited has informed the Exchange about Investor Presentation
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ge of India Li
imited
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2 gust 01, 2022
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Dea
m, ar Sirs/Madam
Sub
:. Presentatio
on- Unaudited
d Financial R
Results for th
e quarter end
ded 30 June 2
2022
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We a
are forwardin
g a copy of pr
resentation on
n Unaudited F
Financial resul
lts for the qua
arter ended 30
0 June
2022
2.
Plea
se note that th
his is only upl
loaded in our
website and n
not distributed
d or advertised
d in newspape
ers or
other
rwise publicis
sed.
You
urs Faithfully
y,
For
Thyrocare T
Technologie
es Limited,
Ram Com
mjee Dorai mpany Secre
etary and C
ompliance O
Officer
Thyrocare Technologies Limited Quarter Results – Q1 FY22-23
0
Agenda
1
2
3
What’s keeping us busy
Performance Summary
Looking ahead – priorities for the year
1
A new brand identity and brand logo which reflects our dynamism as a bigger and widely trusted brand
From a journey that began in 1996 with only three tests – T3, T4, and TSH, we have come a long way to offering more than 700 tests with unrivalled quality, precision, and availability across India.
Element – Drop of Blood
Blood is a symbol of life and it signifies our heritage in pathology testing which is at the core of the company
Element – Microscope
Anchored in technology – the microscope signifies our focus on science and technology at all our labs when it comes to diagnostic testing
2
Continued efforts on focus areas which we highlighted to drive sustainable growth
Geography Expansion
Customer Connect
Quality Quality Perception Perception
• Pin Expansion: 1000 new pins activated in AMJ (1+ sample billed)
•
•
Lab Expansion: 2 New RPLs started at Vishakhapatnam and Jaipur
Franchisee connect: Invested in franchisee support, a field team, launched many packages & schemes
• Deepening our KAM approach: Push across online, and offline Healthcare players for partnerships
• Accreditation: NABL audit completed for 4 labs, CPL CAP accreditation renewed
• We intend to process 90% samples in NABL accredited labs by FY23
TAT Improvement
•
•
Logistics: 90% samples reach lab within 18 hours, in RPL cities we are already at 6 hours
Lab capacity: 97% samples are processed within 6 hours, average is already at 4 hours
Doctor Engagement
Leveraging API
• Education videos : Partnership with KOL Doctors –e.g. Dr Palshetkar on PCOS had 1.2L views
• World Doctor’s Day drive – testing conducted for 1000+ doctors
• Platform : Continuing to drive cross-sell of Diagnostics to API customers – at 5000 patients a day
• Retailio + Marg chemist activation: 900+ retailers on-boarded
• Hospitals : 50 Hospitals activated for out-sourcing
Agenda
1
2
3
What’s keeping us busy
Performance Summary
Looking ahead – priorities for the year
4
Quarter Health-check
YoY Non-Covid Revenue
YoY Non-Covid EBITDA
QoQ Non-Covid Revenue
+33%
+27%
+12%
YoY Non-Covid samples
YoY Non-Covid Tests
+57%
(6 Mn samples in this Q)
+44%
(35 Mn tests in this Q)
YoY Radiology Revenue
+59%
YoY Covid Revenue
YoY Total Revenue*
YoY Non-Covid EBITDA %
-96%
-22%
-100 bps
*Consolidated Revenue
5
We have consistently delivered 10%+ QoQ growth for 2 quarters
Significant growth in Non COVID over last year
Focus on recovery of Non COVID business
Pathology Revenue (Rs Cr)
Pathology Revenue (Rs Cr)
159.3
68.4
84.4
119.2 2.7
112.2
110.7 15.3
91.2
QoQ Non COVID Growth
+10% +10%
123.3 16.1
+12% +12% 119.2 2.7
100.5
112.2
APR - JUN 21 APR - JUN 22
OCT - DEC 21
JAN - MAR 22
APR - JUN 22
YoY Growth YoY Growth
COVID
Non COVID
-96%
+33%
Note: All numbers refer to Pathology revenue
COVID
Non COVID
Material + Others
6
We continue to sustain our March performance, both in revenue and workload
Diagnostic Services Revenue (excludes Material Sales) (Rs Cr)
Diagnostic Services Workload (Lakhs)
50
40
30
20
10
0
41
38 37 38
+12%
Q-O-Q
30 29
31
34 33 34 28
2424
24
31
32
32
28
28
15
19
9
+10%
Q-O-Q
12
3
4
3
1
1
1
1
A 21
M 21
J 21
J 21
A 21
S 21
O 21
N 21
D 21
J 22
F 22
M 22
A 22
M 22
J 22
30
20
10
0
13
9 7 6
13
5
Non COVID
COVID
All time high 21
19 19
18
+16%
Q-O-Q
15
+32%
Q-O-Q
14 14 13
12 11
13
12
9
8
6
3
3
1
1
1
0
0
0
0
A 21
M 21
J 21
J 21
A 21
S 21
O 21
N 21
D 21
J 22
F 22
M 22
A 22
M 22
J 22
7
Our B2B and B2C verticals have stabilized ; B2B vertical continues to post a strong Q-O-Q volume growth of 19%
Non COVID Diagnostics Services Revenue (Rs Cr)
Non COVID Diagnostics Services Workload (Lakhs)
23
23
25 24 24 23
19
6
4
6
30
28 28 28
23
23
21
21
+10%
B2B Q-O-Q
+14%
B2B Q-O-Q
12
11
12
11 11
9
10 9
10
10
18
16 16
16
12
+19%
B2B Q-O-Q
+38%
B2B Q-O-Q
1 1
1
1
2
2
2
2
2
2
2
2
2
2
2
7
7
8
7
6
8
7
7
9
8
8
8
A 21
M 21
J 21
J 21
A 21
S 21 O 21 N 21
D 21
J 22
F 22
M 22
A 22 M 22 J 22
A 21
M 21
J 21
J 21
A 21
S 21
O 21 N 21
D 21
J 22
F 22
M 22
A 22 M 22 J 22
AMJ 21
JAS 21
OND 21
JFM 22
AMJ 22
AMJ 21
JAS 21
OND 21
JFM 22
AMJ 22
84 Cr
100 Cr
91 Cr
101 Cr
112 Cr
35 L
41 L
36 L
48 L
Note: B2B includes API
B2B
B2C
B2G
56 L
8
Non COVID P&L has improved QoQ, but COVID P&L continues to decline
Non COVID
COVID
Q1’22
Q4’22
Q1’23
Q1’22
Q4’22
Q1’23
Revenue
90.83
107.20
116.52
68.43
16.13
2.69
Drop in revenues on account of drop in COVID cases, people opting for at-home testing through kits and relaxation in travel regulations requiring COVID reports.
GM
%
48.61
70.53
79.16
57.43
12.17
54%
66%
68%
84%
75%
1.79 While the testing cost remained same, revenue per test took a hit because of price caps by the states.
67%
EBITDA
26.63
30.03
33.85
44.61
6.81
0.21 While there was significant reduction in
%
30%
28%
29%
65%
42%
8%
volumes trimming the overhead costs took time bringing down the EBITDA.
COVID operations have stopped at Kolkata lab; Bengaluru and Delhi labs will follow suit in August. These labs will be re-purposed for other PCR use cases.
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Income Statement – Pathology: Marginal dip in revenue QoQ, EBITDA levels maintained while investing for growth
Quarter
Q Variance (%)
INR crore Revenue from operations Cost of materials consumed/ sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income PBT and exceptional items Tax expense Profit after tax
Q1 FY22 Q4 FY22 Q1 FY23 119.24 (38.26) 80.98 (20.57) (26.33) 34.08 (7.58) (0.55) 0.83 26.84 (6.51) 20.33
123.33 (40.63) 82.70 (16.48) (29.15) 37.07 (8.57) (0.58) 1.70 29.62 (9.11) 20.51
159.26 (53.22) 106.04 (13.61) (21.96) 70.47 (5.80) (0.63) 2.67 66.71 (18.49) 48.22
Seq. -3% -6% -2%
YOY -25% -28% -24%
-8%
-52%
-9%
-60%
0%
-58%
Gross margin % EBITDA% PAT%
67% 44% 30%
67% 30% 17%
68% 29% 17%
Diagnostic revenue decrease in is about 3%, sequential quarter primarily on account of decrease in COVID business, non- COVID business increase was 33% vs. last year and 12% QoQ
however
Gross margin steady during the quarter – some increases in prices netted off by investments to drive newer packages
Employee benefit expenses at 21 crores increased with additions of Senior in growth team to sustain growth and to investments in quality personnel fulfill NABL requirements
Leadership,
additions
in employee benefits Increase compensated by close review of Other expenses – savings generated in fixed fulfillment costs and other overheads incurred by the company
10
Income Statement – Radiology: Continued strong performance in revenue leading to improved margins
Quarter
Q Variance (%)
INR crore Revenue from operations Cost of materials consumed/ sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income PBT and exceptional items Tax expense Profit after tax Other comprehensive income Total comprehensive income
Gross margin % EBITDA% PAT%
Q1 FY22 5.39 (1.00) 4.39 (0.51) (3.26) 0.62 (1.60) (0.18) 8.24 7.08 0.60 7.68 - 7.68
Q4 FY22 7.22 (1.26) 5.96 (0.76) (4.78) 0.42 (1.19) 0.02 0.78 0.03 0.29 0.32 - 0.32
Q1 FY23 8.55 (1.24) 7.31 (0.81) (4.53) 1.97 (1.14) (0.02) 0.36 1.17 0.16 1.33 - 1.33
81% 12% 142%
83% 6% 4%
86% 23% 16%
Seq. 18% -2% 23%
YOY 59% 24% 67%
369%
218%
3800%
-83%
316%
-83%
316%
-83%
Revenue from imaging services reported accounted for 7% of consolidated of Thyrocare Group in current year
revenue
Radiology business improved significantly during the current year, with patient footfall growing after the COVID impact.
The operations at Baroda centre were commenced in this quarter after a gap of about two years due to legal dispute.
cost
operations
The remained stable throughout quarter is increase in the manpower cost.
though
there
have the an
Other income of 8.24 Cr in Q1-22 was from sale of Noida property.
11
Income Statement – Consolidated: Slight decline in revenues QoQ due to COVID mix change, EBITDA margins stable
Quarter
Q Variance (%)
INR crore Revenue from operations Cost of materials consumed/ sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income PBT and exceptional items Share of profit in associate entity Tax expense Profit after tax
Gross margin %
EBITDA%
PAT%
Q1 FY22 164.65 (54.22) 110.43 (14.13) (25.29) 71.01 (7.29) (0.62) 10.49 73.59 (0.29) (17.89) 55.41
Q4 FY22 130.56 (41.89) 88.67 (17.13) (33.65) 37.89 (9.67) (0.57) 2.15 29.80 0.52 (8.86) 21.46
Q1 FY23 127.79 (39.50) 88.29 (21.37) (30.72) 36.20 (8.61) (0.56) 1.00 28.03 0.26 (6.21) 22.08
67%
43%
34%
68%
29%
16%
69%
28%
17%
Seq. -2% -6% 0%
YOY -22% -27% -20%
-4%
-49%
-5%
-62%
3%
-61%
Overall revenue mix continues to move away from COVID between the quarters – strong growth in Radiology and non- Covid offset by decline in Covid revenues
Gross margin improvement across the board as mix and prices stabilize
Cost increased in manpower largely in field team and quality offset by efficiencies in other expenses to arrive at a stable EBITDA margin
PAT margin stable vs. previous quarter in-spite of investments to grow the non-Covid business significantly from Covid levels
12
Agenda
1
2
3
What’s keeping us busy
Performance Summary
Looking ahead – priorities for the year
13
We continue to execute against our strategy shared in May – will remain focused on the execution against this agenda
+
1
2
3
4
Serve Pharmeasy Online customer base of 2.1 M quarterly transacting users
Partner with Retailio & MARG retailer network of 2.8L+ counters to expand order points
Leverage Aknamed to build a diagnostic presence in the hospital space
Ensure the expansion of Pharmeasy & DocOn offline collection points
5
6
7
8
Continue to improve our value proposition to our franchisee network, expand aggressively
Focus on our Health packages i.e. Aarogyam and promote to corporates, online & offline
Expand Lab network selectively to address TAT challenges, invest in accreditation and PR
Leverage Pharmeasy technology expertise to improve our customer experience and phlebotomist productivity
Note: All numbers as of June 2021 - from DRHP – Nov 8 2021
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Thank You
Disclaimer This presentation is for information purposes only and it contains general background information about the Company’s activities. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events, or otherwise. This Presentation comprises information given in summary form and does not purport to be complete. This Presentation should not be considered as a recommendation to any investor to purchase the equity shares of the Company. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. By their nature, forward- looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future financial condition and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. The past performance is not indicative of future results. This document has not been and will not be reviewed or approved by the statutory auditors or a regulatory authority in India or by any stock exchange in India.
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