Krsnaa Diagnostics Limited
5,841words
11turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
12.2%
25.3%
28.6%
25.2%
15.3%
12.5%
11.6%
13.8%
30.2%
14.5%
Rs. 118 crore
Guidance — 3 items
Notes
opening
“Additionally, we have also successfully implemented the Telereporting project in the state of Tripura, thus extending our reach to the far east corners of India.”
Notes
opening
“Maturity is on the basis of the project start date 3.”
Note
opening
“28 Krsnaa Diagnostics Edge One of the Fastest Growing Diagnostics Service Provider in the country Extensive Geographic Footprint Strong Brand Equity Scalable and Agile Business Model Disruptive Pricing Stakeholder Value Creation Total Centre count increased at a CAGR of 32% from 682 in FY18 to 2050+ in FY21 Centres across India with presence in 14 States.”
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Risks & concerns — 1 flagged
128 Crores in FY22 • Receivables days continues to decline to 46 days at the end of FY22, reflects timely collection of dues from national health agencies • Krsnaa maintains strong EBITDA to Cash Flow conversion ratio, which allows company to fund its growth plans through internal accruals * EBITDA to Cash Flow Conversion calculated as Cash Flow from Operating Activities Before Tax/ EBITDA 37 Well Capitalized Balance Sheet to Fund the Growth (Rs.
— Notes
Speaking time
7
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Opening remarks
Notes
1. Covid-19 Business is including Covid allied tests 2. EBITDA is excluding CSR and ESOP expenses 3 Core Business Continues to Grow In 9M FY23, Core Revenue up by 13.8% Y-o-Y, EBITDA margins at 25.2% and positive outlook considering recent tender won Total Revenue 3,472 3,539 Core Business Revenue 13.8% YoY 3,532 3,104 Covid-19 Revenue1 (98.2)% YoY 368 Rs. Million 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 7 9M FY23 EBITDA2 Profit After Tax 1049 30.2% 9M FY22 891 25.2% 9M FY23 505 14.5% 432 12.2% 9M FY22 9M FY23
Notes
1. Covid-19 Business is including Covid allied tests 2. EBITDA is excluding CSR and ESOP expenses 4 Management Perspectives Commenting on the business, Ms. Pallavi Bhatevara, Managing Director, said: Commenting on the results, Mr. Yash Mutha, Executive Director, said: “Krsnaa Diagnostics has always been at the forefront when it comes to serving the healthcare needs of our society. Today the company is the largest premium quality integrated diagnostics service provider in India with 2,000+ locations with accessible and affordable rates. In line with our growth strategy, Krsnaa Diagnostic has operationalized 24 Radiology Centres, 30 Pathology Labs, 95 Collection Centers in Punjab and 190 Collection Centres along with 24 Labs in Himachal Pradesh. Additionally, we have also successfully implemented the Telereporting project in the state of Tripura, thus extending our reach to the far east corners of India. Further considering the recent projects won, we are excited to operationalize the ce
Notes
1. Covid-19 Business is including Covid allied tests 2. 3. EBITDA is excluding CSR and ESOP expense EBIT including Other Income (3.8)% (62.1)% (3.9)% 6.4% (3.6)% (3.6)% (8.8)% (11.0)% 1,226 3 1,229 43 1,272 310 25.2% 220 17.3% 153 12.5% 5.57 3,532 7 3,539 135 3,674 891 25.2% 621 16.9% 432 12.2% 3,104 368 3,472 108 3,580 1,049 30.2% 833 23.3% 505 14.5% 13.8% (98.2)% 1.9% 24.5% 2.6% (15.0)% (25.5)% (14.4)% 13.42 17.43 6 Well Capitalized Balance Sheet to Fund the Growth (Rs. Million) Long Term Debt Short Term Debt Total Debt Cash & Cash Equivalents Net Debt / (Net Cash) Total Equity Cash Flow From Operating Activities Before Tax FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 556 452 1,008 219 789 806 351 937 772 1,709 1,281 428 1,890 1,400 1,112 2,512 1,379 1,133 2,014 1,680 638 2,318 1,624 694 2,319 331 79 410 3,480 (3,070) 342 280 622 3,512 (2,890) 263 469 732 2,748 (2,016) 6,868 6,659 7,199 681 516 1,102 1,351 655 239 • • Krsnaa has built a strong cash flow generating business model backed b
Regional Chains due to
▪ ▪ Krsnaa’s expertise and scale of business Access to high-cost radiology machines at relatively lower prices
Entry Limitations
▪ High capex, low opex model is tough to enter ▪ Disruptive pricing model makes it tough for competition to compete ▪ Larger chains focused on pathology tests Note: Peer information is based on publicly available information as on 31st March, 2022 and for representative purposes only 12 High Quality Diagnostic Services at Disruptive Prices Krsnaa Offers Tests at 60-80% Lower than Market Rates Segment Test Player 1 Player 2 Player 3 Krsnaa RDL RDL PTH PTH PTH PTH PTH PTH CT Brain MRI Brain CBC Blood Sugar Thyroid Vitamin D Vitamin B12 HbA1C 4,500 8,000 250 85 500 1,500 1,000 550 4,500 8,250 250 80 550 1,250 1,100 440 3,500 7,000 200 70 550 1,450 1,300 400 973 2,209 146 26 216 595 243 141 % from min price (72)% (68)% (27)% (63)% (57)% (52)% (76)% (65)% high Krsnaa diagnostics services at disruptive prices Diagnostics offers quality Well placed to withstand any industry price caps as well pricing pressure on tests Cost Disruption… Leading to a Virtuous Cycle.. Low fixed cost of operations
Notes
1. 2. Maturity is on the basis of the project start date 3. Return on Capital Employed calculated as (EBIT including Other Income / Gross Block) 22 Fully Geared to Disrupt the Growing Retail Market Retail Market Expansion Strategy Pathology through Krsnaa Business Associates Wellness 5 key wellness and 5 key illness package Launch of specialized tests- Genomics Expansion in Retail Market Hospital Lab Management Tele reporting support – For key alliances Franchisee Model Pick-Up-Points (Nursing Homes, Hospitals, small and mid- sized Laboratories, SIS, HLM, DOL) Awareness (Camps and Corporates, Wellness & Illness Packages) PACE Collection Centre Network and Franchisee CCs (Krsnaa Business Associates- KBA) Essential (Home) Collection Services 23 Expanding B2C Pathology Service Offerings Capitalizing on the extensive infrastructure of Pathology Diagnostics and extending it to end consumers 838 Pathology Centres 97 741 Processing Labs Collection Centres ▪ Expanding B2C pathology diagnostic
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