Thyrocare Technologies Limited has informed the Exchange about Investor Presentation
February 03, 2023
The National Stock Exchange of India Limited
BSE Limited
Exchange Plaza
Bandra Kurla Complex,
Bandra (E), Mumbai - 400 051
Phiroze Jeejeeboy Towers
Dalal Street,
Mumbai- 400 001
(SYMBOL: THYROCARE)
(SCRIP CODE 539871)
Dear Sirs/Madam,
Sub: Presentation- unaudited financial results for the quarter and nine months ended
December 31, 2022 of Thyrocare Technologies Limited (“the Company”).
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the
presentation, to be made at the earning conference call for Analysts and Investors to be
held today i.e. February 3, 2023, on the unaudited financial results of the Company
for
the quarter and nine months ended December 31, 2022. The same is also available on
the Company’s website www.thyrocare.com.
The audio recording of the earning conference call for Analysts and Investors to be
held on February 3, 2023 will be submitted separately.
You are requested to take the above information on record.
Yours Faithfully,
For Thyrocare Technologies Limited,
Ramjee Dorai
Company Secretary and Compliance Officer
Thyrocare Technologies Limited
Quarter Results – Q3 FY22-23
0
Agenda
1
2
3
What’s keeping us busy
Performance Summary
Looking ahead – priorities for the year
1
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: 3950+ active pincodes in Q3 FY23
•
Lab Expansion: Added 3 labs; 1 RPL at Varanasi, Satellite labs in Mumbai and Bangalore; Total 29 labs
• Extending our Aarogyam range with Plus and Pro Series for all our Franchise Partners • Extending our lifestyle range by 25+ packages – Smoking Impact, Alcohol, Hairfall, Skin Care, etc.,
• Push across online and offline Healthcare players for partnerships through KAM approach • Regional celebrity promotions for festive push – Ganesh Chaturthi, Durga Pooja & Navratri
• Accreditation: NABL certificates received for 4 labs – Bhopal, Coimbatore, Chennai & Guwahati • Accreditation: NABL certificates received for 4 labs – Hyderabad, Gurgaon, Kolkata & Pune
• •
14 labs NABL accredited, on track to process 90% samples 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 reduced by an hour; Now at 14 hours across India • Our average report release time is already at 15 hours across India
• •
Field reach out : 59 member field team to actively engage with specialty doctors Field reach out : 38 member field team to actively engage with doctors
• Education videos : Dr. Banshi Saboo’s video on World Diabetes Day had 62K 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 6.02% • Platform : Continuing to drive cross-sell of diagnostics, currently at 4.3% of monthly transacting users
• Retailio + Marg chemist activation: 4900+ retailers on-boarded • Retailio + Marg chemist activation: 2500+ retailers on-boarded
• Hospitals : 180+ Active Hospitals for out-sourcing tests • Hospitals : 110+ Active Hospitals for out-sourcing tests
2
Customer & Doctor Connect – Aarogyam Plus and Pro Series; Awareness Programs
Aarogyam Packages Launch
Awareness Programs
Introduced new packages in the price ranges of Rs. <1200 and between Rs. 2500 to Rs. 4500
Diabetes Awareness
For World Diabetes Day
3
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 Total Revenue*
YoY Radiology Revenue
+20%
+9%
+50%
YoY Non-Covid samples
YoY Pathology Revenue
QoQ Radiology Revenue
+47%
(5.3 Mn samples in this Q)
+6%
+11%
YoY Covid Revenue
QoQ Total Revenue*
QoQ Pathology Revenue
-94%
-5%
-6%
*Consolidated Revenue
5
YoY Overall Pathology revenue grew despite steep de-growth in COVID business
Significant growth in Non COVID over last year
Strong recovery of Non COVID business in 9M FY23
Pathology Revenue (INR Cr)
+6%
117.2 0.9
109.0
110.2 15.3
91.2
+20% +20%
YoY 9M Non Covid Growth
438.2
154.9
275.3
+23%
361.7 5.6
338.6
Q3 FY22
Q3 FY23
9M FY22
9M FY23
YoY Growth
COVID
Non COVID
-94%
+20%
Note: All numbers refer to Pathology revenue
COVID
Non COVID
Material + Others
6
Our core business verticals continue to grow YoY – Franchise business and Partnerships main drivers of growth
Non COVID Diagnostics Services Revenue (Rs Cr)
Non COVID Diagnostics Services Workload (Lakhs)
65
28
60
20
62
31
60
25
72
68
38
38
67
35
33
14
33
28
8
8
30
5
39
37
18
17
36
16
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q1 FY22
Q2 FY22 Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
84 Cr
100 Cr
91 Cr
101 Cr 112 Cr 117 Cr 109 Cr
35 L
41 L
36 L
48L
56 L
58 L
53 L
Franchise
Partnerships(Includes B2G)
D2C
7
Income Statement – Pathology
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
Q3 FY22 110.20 (29.00) 81.20 (14.10) (26.08) 41.02 - (5.02) 36.00 (7.40) (0.60) 1.10 29.10 (6.50) 22.60
Quarter
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
Gross margin % Normalized EBITDA% PAT% Reported EBIDTA% *Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables
74% 37% 20% 33%
68% 30% 11% 24%
Q Variance % YOY Seq. 6% -6% 35% -1% -4% -9%
-14%
-21%
-21%
-40%
-12%
-44%
Q3 FY23 117.17 (39.01) 78.16 (20.29) (25.61) 32.27 (5.82) (0.53) 25.91 (9.01) (0.59) 1.27 17.58 (4.95) 12.63
67% 28% 11% 22%
Pathology revenue increased 6% Y-o-Y with Non Covid revenue increase at 20% YoY..
Gross margin % remains stable Q-o-Q while lower Y-o-Y on account of decline in high GM COVID business
Employee benefit expenses remains stable Q-o-Q
Other expenses remains stable Q-o-Q
EBITDA
Normalized % marginally lower by 2% QoQ due on account of seasonality while overheads remaining stable
revenue
lower
to
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%)
8
Income Statement – Radiology
Quarter
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
7.26 (1.00) 6.26 (0.62) (4.94) 0.70 - - 0.70 (1.47) (0.03) 0.53 (0.27) (0.75) (1.02)
9.74 (1.67) 8.07 (0.88) (5.55) 1.64 - - 1.64 (1.18) (0.03) 0.97 1.40 (0.35) 1.05
10.86 (1.84) 9.02 (0.92) (5.99) 2.11 - - 2.11 (1.25) (0.03) 0.85 1.68 (0.08) 1.60
Gross margin % Normalized EBITDA% PAT% Reported EBIDTA% *Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables
86% 10% -13% 10%
83% 17% 10% 17%
83% 19% 14% 19%
Q3 FY22 Q2 FY23 Q3 FY23 Seq. 11% 10% 12%
Q Variance % YOY 50% 84% 44%
Revenue imaging from services grew 11% Q-o-Q on account of scale up of FDG Sales and Surat centre
GM% remains stable Q-o-Q
29%
201%
Employee Benefit Expenses remain stable Q-o-Q
20%
268%
52%
260%
Other expenses increased due to higher medical consultation fees on account of higher scans and increase in logistics costs
Normalized EBITDA % grew marginally Q-o-Q on account of the higher employee expenses remained flat
revenue while
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%)
9
Income Statement – Consolidated
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 Share of profit in associate entity Tax expense Profit after tax
Q3 FY22 117.40 (30.00) 87.40 (14.70) (30.88) 41.82 - (5.02) 36.80 (8.80) (0.50) 1.40 28.90 (0.20) (7.20) 21.50
Quarter
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
Q3 FY23 128.03 (40.86) 87.17 (21.22) (31.74) 34.22 (5.82) (0.53) 27.86 (10.15) (0.58) 2.10 19.23 0.49 (5.02) 14.70
Q Variance % YOY Seq. 9% -5% 36% -1% 0% -7%
Diagnostics revenue increased 9% Y-o-Y with Non – Covid Revenue increase at 20% Y-o-Y
GM% remains stable Q-o-Q
-14%
-18%
Employee & Other Expenses remains flat Q-o-Q
ESOPs program to retain talent introduced at group level, it is a cashless charge and not a cash outflow
Receivables from government bodies for COVID business have been provisioned, co-ordinating with government for payments
-19%
-33%
-5%
-32%
Gross margin % Normalized EBITDA% PAT% Reported EBIDTA % *Normalized EBITDA – EBITDA before ESOP cost and Provisions for Receivables 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%)
70% 29% 11% 23%
74% 36% 18% 31%
68% 27% 11% 22%
Profit after Tax lower Q-o-Q in line with to revenue seasonality
due
10
Agenda
1
2
3
What’s keeping us busy
Performance Summary
Looking ahead – priorities for the year
11
We continue with our strategy 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%
12
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 and our Thyrocare Franchise network 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
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
13
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.
14