THYROCARENSE11 November 2022

Thyrocare Technologies Limited has informed the Exchange about Investor Presentation

Thyrocare Technologies Limited

(cid:0) (cid:3) N o v e m b e r 1 1 , 2 0 2 2 T h e N a t i o n a l S t o c k E x c h a n g e o f I n d i a L i m i t e d T h e B o m b a y S t o c k E x c h a n g e L t d E x c h a n g e P l a z a P h i r o z e J e e j e e b o y T o w e r s B a n d r a K u r l a C o m p l e x , D a l a l S t r e e t , B a n d r a ( E ) , M u m b a i - 4 0 0 0 5 1 M u m b a i - 4 0 0 0 0 1 ( S Y M B O L : T H Y R O C A R E ) ( S C R I P C O D E 5 3 9 8 7 1 ) D e a r S i r s / M a d a m , S u b : P r e s e n t a t i o n - U n a u d i t e d F i n a n c i a l R e s u l t s f o r t h e Q u a r t e r / H a l f y e a r e n d e d 3 0 S e p t e m b e r 2 0 2 2 . - - o - - P u r s u a n t t o R e g u l a t i o n 3 0 o f t h e S e c u r i t i e s a n d E x c h a n g e B o a r d o f I n d i a ( L i s t i n g O b l i g a t i o n s a n d D i s c l o s u r e R e q u i r e m e n t s ) R e g u l a t i o n s , 2 0 1 5 , w e a r e e n c l o s i n g h e r e w i t h a c o p y o f t h e I n v e s t o r P r e s e n t a t i o n f o r t h e q u a r t e r / h a l f y e a r e n d e d S e p t e m b e r 3 0 , 2 0 2 2 , i s a v a i l a b l e o n t h e C o m p a n y (cid:146) s w e b s i t e w w w . t h y r o c a r e . c o m Y o u a r e r e q u e s t e d t o t a k e t h e a b o v e i n f o r m a t i o n o n r e c o r d . Y o u r s F a i t h f u l l y , F o r T h y r o c a r e T e c h n o l o g i e s L i m i t e d , R a m j e e D o r a i C o m p a n y S e c r e t a r y a n d C o m p l i a n c e O f f i c e r Thyrocare Technologies Limited

Quarter Results – Q2 FY22-23

Agenda

What’s keeping us busy

Performance Summary

Looking ahead – priorities for the year

Continued efforts on focus areas which we highlighted to drive sustainable growth

Geography Expansion

Customer Customer Connect Connect

Quality Quality Quality Quality Perception Perception Perception Perception

TAT TAT Improvement Improvement

Doctor Doctor Engagement Engagement

Leveraging Leveraging API API

• Pin Expansion: Added 400+ active pincodes; 3900+ active pincodes in Q2 FY23 (1+ sample billed)

•

Lab Expansion: Our lab network continues to remain at 26 labs (19 RPLS, 3 ZPLs, 1 CPL, 3 PCR labs)

• Extending our lifestyle range by 25+ packages – Smoking Impact, Alcohol, Hairfall, Skin Care, etc., • Extending our lifestyle range by 25+ packages – Smoking Impact, Alcohol, Hairfall, Skin Care, etc.,

• Regional celebrity promotions for festive push – Ganesh Chaturthi, Durga Pooja & Navratri • Regional celebrity promotions for festive push – Ganesh Chaturthi, Durga Pooja & Navratri

• Accreditation: NABL certificates received for 4 labs – Hyderabad, Gurgaon, Kolkata & Pune • Accreditation: NABL certificates received for 4 labs – Hyderabad, Gurgaon, Kolkata & Pune

• •

10 labs NABL accredited, on track to process 90% sample in NABL accredited labs by FY23 10 high volume labs NABL accredited, on track to process 90% sample in NABL accredited labs by FY23

• Moving to same day reports; 90% samples are reported within 24 hours • Moving to same day reports; 90% samples are reported within 24 hours

• Our average report release time is already at 15 hours across India • Our average report release time is already at 15 hours across India

• •

Field reach out : 38 member field team to actively engage with doctors Field reach out : 38 member field team to actively engage with doctors

• Education videos : Dr. Mangesh Tiwaskar’s video on Importance of Preventive Care had 2.7L views • Education videos : Dr. Mangesh Tiwaskar’s video on Importance of Preventive Care had 2.7L views

• Platform : Continuing to drive cross-sell of diagnostics, currently at 4.3% of monthly transacting users • Platform : Continuing to drive cross-sell of diagnostics, currently at 4.3% of monthly transacting users

• Retailio + Marg chemist activation: 2500+ retailers on-boarded • Retailio + Marg chemist activation: 2500+ retailers on-boarded

• Hospitals : 110+ Active Hospitals for out-sourcing tests • Hospitals : 110+ Active Hospitals for out-sourcing tests

Geography Expansion – Pin Expansion & Lab Network

19000

5000

3900

3500

Total Pincodes in India

Active pincodes goal by Mar-23 exit

Pincodes active in Q2 FY23

Pincodes active in Q1 FY23

Active pincode – Samples billed in the quarter

Customer Connect – Lifestyle Packages & Celebrity Promotions

Alcohol Impact

Hairfall Screening

Fitness Essential

Sedentary Lifestyle

Diet Impact

Smoking Impact

Skin Care Checkup

Weight Management

Stress Impact

Food Impact

Tejashri Pradhan

Ganesh Chaturthi - Maharashtra

Manali Manisha Dey

Durga Pooja – West Bengal & Orissa

Falguni Pathak

Navratri – Gujarat & Maharashtra

Agenda

What’s keeping us busy

Performance Summary

Looking ahead – priorities for the year

Quarter Health-check

YoY Non-Covid Revenue

QoQ Non-Covid Revenue

+18%

+5%

QoQ Pathology Normalized EBITDA

+10%

YoY Non-Covid samples

QoQ Normalized EBITDA %

YoY Radiology Revenue

+39%

(6 Mn samples in this Q)

+100 bps

(30% in Q2 FY23)

YoY Covid Revenue

YoY Total Revenue*

-97%

-23%

+30%

YoY Non-Covid Normalized EBITDA %

-400 bps

*Consolidated Revenue

We have consistently delivered QoQ non-covid revenue growth for 3 quarters

Significant growth in Non COVID over last year

Strong recovery of Non COVID business

Pathology Revenue (INR Cr)

QoQ Non COVID Growth

168.7

71.1

99.7

125.2 2.1

117.4

110.7 15.3

91.2

123.3 16.1

100.5

119.2 2.7

112.2

+5%

125.2 2.1

117.4

Q2 FY22

Q2 FY23

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

YoY Growth

COVID

Non COVID

-97%

+18%

Note: All numbers refer to Pathology revenue

COVID

Non COVID

Material + Others

Normalized EBITDA continues to grow QoQ in line with the revenue growth

YoY revenue growth resulting in Normalized EBITDA growth

Pathology Normalized EBITDA (INR Cr)

Strong growth in QoQ Normalized EBITDA led by revenue growth and tight control over costs

QoQ Non COVID Growth

91.08

58.1

33.0

37.5 0.4

37.1

41.0

8.0

33.0

36.8 6.8

30.0

34.1 0.2

33.9

+10%

37.5 0.4

37.1

Q2 FY22

Q2 FY23

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

N. EBITDA % 54%

30%

N. EBITDA % 37% 30% 29%

30%

COVID

YoY Growth -99%

Non COVID

+12%

Note: All numbers refer to Pathology Normalized EBITDA

COVID

Non COVID

We have re-oriented our Non-COVID business verticals to explain our strategy

Franchise

• Network of 950+ branded and 5000+ third party partners – collections centres, local labs,

nursing homes and small hospitals

• API, e-pharmacies, online consults, surgeries, at home healthcare & wellness providers

Partnerships

• Direct Selling Agents (DSA) promoting Thyrocare services via online & offline channels

• Corporate tie-ups for providing diagnostics services to their clients and employees

D2C

• Direct to Consumer base acquired through Thyrocare website, app and social media;

loyalty base of 1 Mn users

B2G

• Revenue generated through tenders from government

Our core business verticals continue to grow – Franchise business and Partnerships main drivers of growth

Non COVID Diagnostics Services Revenue (Rs Cr)

Non COVID Diagnostics Services Workload (Lakhs) 39

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

100 Cr

91 Cr

101 Cr

112 Cr

117 Cr

41 L

36 L

48 L

56 L

58 L

Franchise

Partnerships

D2C

B2G

Income Statement – Pathology

Quarter

Q Variance (%)

INR crore Revenue from operations Cost of materials consumed/ sold Gross margin Employee benefit expenses Other expenses Normalized EBITDA ESOP Cost Provision for Receivables Reported EBITDA Depreciation and amortisation Finance cost Other income PBT and exceptional items Tax expense Profit after tax

Q2 FY22 Q1 FY23 Q2 FY23 125.23 (39.46) 85.77 (21.50) (26.74) 37.53 (6.65) (1.20) 29.68 (8.07) (0.51) 1.16 22.26 (7.85) 14.41

119.24 (38.26) 80.98 (20.57) (26.33) 34.08 - - 34.08 (7.58) (0.55) 0.89 26.84 (6.51) 20.33

168.74 (42.41) 126.33 (14.68) (20.57) 91.08 - (3.91) 87.17 (6.71) (0.61) 1.95 81.80 (21.29) 60.51

Seq. 5% 3% 6%

YOY -26% -7% -32%

10%

-59%

-17%

-73%

-29%

-76%

Gross margin % Normalized EBITDA% PAT%

75% 54% 36%

68% 29% 17%

68% 30% 12%

*Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables

Pathology revenue increased 5% Q-o-Q. While it decreased 26% Y-o-Y, primarily on account of decrease in COVID business

Gross margin % remained steady during the quarter

Employee benefit expenses increased QoQ marginally on of account variable pay across organisation

introduction

Other expenses continue to remain at the same level QoQ on account of close control over costs

Normalized EBITDA increased 10% Q-o-Q

Note: ESOP cost is ESOPs granted from parent group API Holdings to Thyrocare employees and recognized as share based payment in the P&L and appropriately recognized in the balance sheet as Equity contribution from the parent. Total value of the ESOPs granted are 45.53 Cr over a 6 year period ((Year 1 – 39.7%, Year 2 – 31.4%, Year 3 – 16.2%, Year 4 – 9.0%, Year 5 – 3.5%, Year 6 - 0.2%)

Non COVID P&L has improved QoQ, but COVID P&L continues to decline

Non COVID

COVID

Q2’22

Q1’23

Q2’23

Q2’22

Q1’23

Q2’23

Revenue#

97.60

116.52 123.17

71.14

2.69

2.06 Drop in COVID revenue as the pandemic

subsided.

63.49

79.16

84.23

62.84

1.79

1.54

65%

68%

88%

67%

75%

COVID revenue through Franchise channel with lower margins decreased while the revenue through B2G channel at higher margins continued thus reflecting in higher GM% Q-o-Q.

Normalized EBITDA*

33.02

33.85

37.09

58.06

0.21

0.44

34%

29%

30%

82%

21%

Strong control over COVID overhead costs

*Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables

# - Includes Materials + Others

Income Statement – Radiology

Quarter

Q Variance (%)

Q2 FY22 Q1 FY23 Q2 FY23 9.74 (1.67) 8.07 (0.88) (5.55) 1.64 - - 1.64 (1.18) (0.03) 0.97 1.40 (0.35) 1.04

7.47 (1.20) 6.27 (0.43) (4.15) 1.69 - - 1.69 (1.57) (0.05) 13.47 13.54 3.62 17.16

8.55 (1.24) 7.31 (0.81) (4.53) 1.97 - - 1.97 (1.14) (0.02) 0.36 1.17 0.16 1.33

Seq. 14% 35% 10%

YOY 30% 39% 29%

-17%

-3%

19%

-90%

-22%

-94%

Gross margin % Normalized EBITDA% PAT%

84% 23% 230%

86% 23% 16%

83% 17% 11%

*Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables

Revenue imaging from services accounted for 7% consolidated revenue

Radiology business improved significantly during the current year, footfall with growing post COVID.

patient

Decrease in GM% due to lower realization per scan from newly added centers at Surat & Baroda

Increase in other expenses is due to increase in CMC of 2 new centers added at Surat & Baroda

Other income of 13.47 Cr in of Q2-FY22 property

from sale

Income Statement – Consolidated

Quarter

Q Variance (%)

Q2 FY22 Q1 FY23 Q2 FY23 134.97 (41.12) 93.85 (22.39) (31.90) 39.56 (6.65) (1.20) 31.71 (9.15) (0.54) 1.62 23.64 0.10 (8.21) 15.53

127.79 (39.50) 88.29 (21.37) (30.72) 36.20 - - 36.20 (8.61) (0.56) 1.00 28.03 0.26 (6.35) 21.94

176.21 (43.61) 132.60 (15.11) (24.38) 93.11 - (3.91) 89.20 (8.16) (0.69) 15.19 95.54 (0.19) (17.68) 77.67

Seq. 6% 4% 6%

YOY -23% -6% -29%

-58%

-16%

-75%

-29%

-80%

Gross margin % Normalized EBITDA% PAT%

75% 53% 44%

86% 28% 17%

70% 29% 13%

*Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables

Total revenue increased 6% QoQ. While it decreased 23% YoY, primarily on account of decrease in COVID business

ESOPs program to retain talent introduced at group level, it is a cashless charge and not a cash outflow

Receivables from government for COVID business bodies co- have been provisioned, ordinating with government for payments

Profit after Tax declined 29% QoQ due to non cash expenses of ESOP Cost and Provision for Receivables

Agenda

What’s keeping us busy

Performance Summary

Looking ahead – priorities for the year

We aim to be the partner of choice for diagnostics to all healthcare providers

61%

Franchise

-Mom & Pop collection centers

-Local labs

-Nursing homes & hospitals

33%

Partnerships + B2G

-Online diagnostics aggregators

-Healthcare platforms

-Employee Wellness platforms

-Government Business

-23 Labs

-Lab within 200Kms of

every pincode of India

-Network of 900+ phlebos

Thyrocare is well placed to leverage best of both worlds

% Revenue Contribution

+ Direct to Consumer Business at 6%

We continue to execute against our strategy shared in May – will remain focused on the execution against this agenda

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

Continue to improve our value proposition to our franchisee network, expand aggressively

Aggressively expanding partnerships to all Healthtech Platforms

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

* Slight modification in Strategy

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.

← All Transcripts THYROCARE Stock Page →

Thyrocare Technologies Limited has informed the Exchange about Investor Presentation

Market Movers