Vijaya Diagnostic Centre Limited has informed the Exchange about Investor Presentation
August 9, 2023
To, Listing Department National Stock Exchange Of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051 NSE Symbol. VIJAYA
To, The Corporate Relations Department BSE Limited, Phiroz Jeejeebhoy Towers, 25th floor, Dalal Street, Mumbai - 400 001 BSE Scrip Code. 543350
Dear Sir/Madam,
Sub: Investor Presentation
Pursuant to Regulation 30(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the presentation for Q1 FY 2024 results and which would be used in the Investors / Analysts earnings conference call scheduled to be held on August 10, 2023 at 12:30 P.M. IST.
Please take the information on record.
Thanking you, For Vijaya Diagnostic Centre Limited
Hansraj Singh Company Secretary & Compliance Officer M. No. F11438
Encl.: As Above
Q1 FY24 Earnings Presentation, August 9, 2023
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vijaya Diagnostic Centre Limited (the ‘Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the Presentation are not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
2
Q1 FY24 Financial Performance
Disclaimer
Disclaimer "With effect from 01 January 2023, the Company has changed its method of depreciation on all Property, Plant and Equipment from Written Down Value (“WDV") method to Straight Line Method (“SLM"), based upon the technical assessment of expected pattern of consumption of the future economic benefits embodied in the assets.
Due to the aforesaid change:
o The depreciation expense is lower by Rs. 79.1 Mn and Rs. 90.4 Mn for the quarter ended June 30, 2023
and quarter & year ended March 31, 2023 respectively.
o The Profit after tax (PAT) is higher by Rs. 59.2 Mn and Rs. 67.7 Mn for the quarter ended June 30, 2023
and quarter & year ended March 31, 2023 respectively.
There has been no change in the depreciation expense recognized up to the period ended December 31, 2022.
4
Q1 FY24 – Performance Snapshot
Operational & Financial Highlights – Q1 FY24
2.62 Mn Tests
0.79 Mn Footfalls
121 Centres
95.0% B2C Revenue
INR 1,210.5 Mn Revenue from operations
INR 1,206.1 Mn Non-COVID Revenue2
+19.2%
+20.3%
Non COVID Revenue growth (YoY)
Non COVID test volume growth (YoY)
INR 481.2 Mn EBIDTA
39.8% EBIDTA Margin
INR 262.0 Mn Profit After Tax1
21.6% PAT Margin
Note 1: Refer Slide no. 4 Note 2 : Non-COVID revenues constituted 99.6% of the Revenue from operations in Q1FY24
5
Management comment
Commenting on the Q1FY24 results performance, Ms. Suprita Reddy, MD & CEO at Vijaya Diagnostic Centre Ltd. said:
“I am delighted to share that we have commenced this fiscal year on a positive note. In the quarter gone by, Vijaya effectively capitalized on the increasing demand for its Non-Covid business. Not only did we see a healthy contribution from new centres in greenfield locations, but we also observed better traction in our existing centers, both of which contributed to our healthy YoY revenue growth of 19.2% in Non-Covid revenue.
A step ahead towards sustained expansion was the inauguration of a futuristic hub in Kolkata, West Bengal, in July 2023. The expansive 10,000 Sq. ft facility operates a fully automated laboratory and amongst other sophistic equipment houses a 3T MRI and a 128 slice cardiac CT, making Vijaya one among a very few healthcare players to introduce such high-end facilities in the whole of West Bengal. We are excited to be able to serve the unmet need and to take on the opportunity that this geography holds in store for us.
A major milestone during the period was the achievement of operational break-even at Tirupati in just 3 months from commencement of full-fledged operations. This not only reinforces the fact that there is huge demand for quality diagnostics in the region but also that over the years, we have been able to gain repute as a trusted brand, a strong reason for our success even in new geographies.
Building on our glorious 4 decades of expertise in the diagnostic space, we will steadily raise the bar on the standards of quality that we have always guarded and will continue to offer best-in-class services to customers and clinicians alike. Through strategically planned expansion and intelligently directing our capabilities towards opportunities that lie ahead, we are confident that we will continue to create lasting value for our stakeholders in time to come.”
6
Key Financial Highlights – Q1 FY24
Revenue from Operations
EBITDA & EBITDA Margin (%)
4,624
4,592
38.2%
40.6%
39.8%
44.1%
39.6%
2,037
1,820
1,044
1,210
1,210
399
491
481
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
Shift YoY (%)
16.0%
-0.7%
20.6%
-10.6%
PAT & PAT Margin (%)
16.7%
22.7%
21.6%
23.7% 1,097
18.4%
846
175
275
262
Shift YoY (%)
50.2%
-22.8%
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
(INR Mn)
Note: Refer Slide no. 4
7
Revenue Mix – Q1 FY24
Radiology vs. Pathology Breakdown
Non-COVID & COVID Allied Breakdown
Radiology
Pathology
64%
64%
63%
67%
65%
36%
36%
37%
33%
Q1 FY23
Q4 FY23
Q1 FY24
FY22
35%
FY23
3%
97%
Non Covid
Covid
1%
99%
0%
100%
Q1 FY23
Q4 FY23
Q1 FY24
Non-COVID YoY (%)
COVID YoY (%)
19.2%
-86.1%
B2C Contribution – Q1 FY24
Non Covid
Covid
B2B 5%
B2C 95%
15%
85%
FY22
Non-COVID YoY (%)
COVID YoY (%)
2%
98%
FY23
14.7%
-88.0%
(IN %)
8
Q1 FY24 – Key Developments
Kolkata, West Bengal
Tirupati Facility
Inaugurated a state-of-the-art hub in Kolkata, West Bengal in July 2023
•
•
•
This marks the beginning of a significant milestone in Vijaya’s Growth Plan, foraying into the diagnostic space in this region which holds a lot of opportunities for an integrated diagnostic chain as us
The 10,000 sq ft making it one among a very few healthcare setups to have such high-end facilities in the whole of West Bengal
facility has an automated lab and houses advanced equipment such as a 3T MRI & 128 slice cardiac CT,
This is the company’s first center in Kolkata under the ‘Vijaya’ brand name.
Achieved operational break-even within a record 3 months at Tirupati, Andhra Pradesh
•
•
A futuristic and one-of-a-kind hub in Tirupati, Andhra Pradesh started full-fledged operations in May 2023. This facility houses top-class equipment such as a 3T MRI, CT, Gamma Camera and an automated lab and offers some of the most advanced diagnostic services in the region.
The center achieved operational break-even within just three months from commencement of operations, a remarkable feat highlighting the strength of our brand and demand for our top-class services, even in new geographies.
9
Q1 FY24 - Financial and Operational Discussions (Y-o-Y)
Financial Performance Q1 FY24
• Revenue from Operations increased by 16.0% YoY to Rs. 1,210 Mn, Non-Covid Revenues grew by 19.2% YoY
o The Non-COVID revenue growth is primarily driven by volume growth. Additionally, the strong growth in the radiology and pathology segments further emphasizes the effectiveness of VDCL’s integrated approach
o During Q1FY24, the Non-COVID business comprised 99.6% of total revenue share as against 96.9%
revenue share in Q1FY23
o Wellness share in Q1FY24 was up at 12.4% as against 9.6% in Q1FY23
o Revenue composition from B2C segment stood at 95.0%
•
•
EBITDA stood at Rs. 481 Mn. EBITDA margin for the quarter was 39.8% as against 38.2% in Q1FY23
o Despite establishing new centers, the Company effectively preserved its margin performance on a year-
on-year basis.
PAT stood at Rs. 262 Mn. translating into a PAT margin of 21.6% (refer slide no 4)
10
Key Operational Highlights
Tests Performed (# in Million)
Footfalls (# in Million)
Tests / Footfalls (# in Million)
9.32
10.05
3.62
3.18
2.98
3.37
3.34
3.17
2.57
2.23
2.71
2.62
0.75
0.80
0.79
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
Revenue per Test (INR)
496
469
461
447
457
Revenue per Footfall (INR)
1,395
1,504
1,540
1,276
1,446
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
Q1 FY23
Q4 FY23
Q1 FY24
FY22
FY23
• Company recorded steady growth in No. of tests on YoY basis led by Non-COVID customers in Q1FY24
11
Consolidated Profit & Loss Account – Q1 FY24
Particulars
Revenue from operations
Cost of materials consumed
Employee benefits expense
Other expenses
EBITDA
EBITDA Margin (%)
Other income
Depreciation and amortization expense
EBIT
Finance costs
Profit before Tax
Tax expenses
Profit before Minority Interest
Minority Interest
Profit after Tax (PAT)
PAT Margin (%)
EPS – Basic (INR)*
Note: Refer Slide no. 4
Q1 FY24
Q1 FY23
1,210.5
1,043.6
142.9
208.5
377.9
481.2
39.8%
57.1
124.7
413.6
58.8
354.7
90.9
263.8
1.8
262.0
21.6%
2.6
130.3
194.8
319.6
398.9
38.2%
27.7
141.8
284.9
47.7
237.2
61.6
175.6
1.1
174.5
16.7%
1.7
Y-o-Y
16.0%
9.6%
7.1%
18.3%
20.6%
160 bps
106.1%
-12.0%
45.2%
23.4%
49.5%
47.4%
50.3%
69.1%
50.2%
490 bps
50.2%
Q4 FY23
1,209.9
155.3
195.3
368.3
491.1
40.6%
45.2
113.6
422.7
57.7
365.0
87.7
277.3
2.3
274.9
22.7%
2.7
Q-o-Q
0.0%
-8.0%
6.8%
2.6%
-2.0%
-80 bps
26.3%
9.8%
-2.2%
2.0%
-2.8%
3.6%
-4.8%
-22.7%
-4.7%
-110 bps
-4.7%
(INR Mn)
12
*Not annualized
Company Overview
Vijaya at a Glance
Vijaya Diagnostic Centre Limited is the largest integrated diagnostic chain in South India with 121 state-of-the-art centres spread across 20 cities
Mission
Our Mission is to make the patient’s medical journey faster, more transparent and more accurate. We are committed to deliver exceptional diagnostic solutions to every patient and physician
40+ Years of Experience
Experience in delivering Quality Diagnostic Service at affordable prices
121 Centres
State-of-the-art Facilities with Best-in-class Technology
20 Cities across India
200+ Doctors
Vision
Largest integrated player in South India
Radiologists, Pathologists & Microbiologists
Our Vision is to provide reliable and accurate to our customers, at diagnostic services affordable prices, customer-centric in a manner. We strive to provide the best service possible. We are continually raising our own bar through the latest technology, continuous improvement and recruitment of high calibre technicians and professional
~3.2 Mn Footfalls
~10.5 Mn Tests
Trusted by every Age group
Most preferred Diagnostic Centre
Footfalls & Tests for 12 months ended Jun 2023
Quality
Reliable & Accurate Diagnostics
at Affordable Prices
14
Our Journey
Vijaya Diagnostic Centre incorporated in Hyderabad
Recognized as one of the Best Imaging centres in Hyderabad by The Week
Awarded Brand of the year in diagnostic services by The CEO Magazine and Telangana Healthcare Leadership award
One of the earliest private diagnostic service providers to be approved for COVID RT- PCR testing by ICMR*
Awarded one of the Best Healthcare Brands 2022 by The Economic Times
Won the Healthcare Leadership Awards 2022
Awarded Pride of India Brands Award – The Best of South Awards 2022
1981
2012
2018
2020
2022
2008
2016
2019
2021
2023
First independent diagnostic centre in South India to offer PET CT from Wipro GE Healthcare Pvt. Ltd.
Investment by Karakoram Limited and Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF1
Awarded Best Diagnostic Centre – India by Times Healthcare Achievers Group
Successfully listed on Indian Stock Exchanges (NSE & BSE)
First independent diagnostic centre in Telangana to get Revolution ACT 50 slice CT from Wipro GE Healthcare Pvt. Ltd
Successfully launched the first center in Kolkata under the "Vijaya“ brand name
*ICMR: Indian Council of Medical Research; NSE: National Stock Exchange, BSE: Bombay Stock Exchange
15
At the Forefront of Introducing New Technologies
1981
Ultrasound & Echocardiography
1986
Nuclear Medicine facility
1993
Fourth Generation CT Scan
1994
Offer Mammography
2006
Hawkeye Gamma Camera with SPECT
2003
Automated Microbiology Culture
2000
Real Time RT-PCR Assays & Flow Cytometry
1999
Bone Densitometry
2007
Cardiac CT & 3.0 Tesla MRI
2009
HPV-DNA HC2 test in South India
2011
Automated TB identification & Sensitivity in South India
2012
Liquid Based Cytology (Thin Prep) in Andhra Pradesh (AP)
2019
3D Mammography with Advanced Technology
2019
USG-ECHO for Cardiology & Advanced CBCT in South India
2017
Droplet Digital PCR (ddPCR) & Adv. PET CT in South India
2013
iQ200 Automated Iris Analyzer with Urine Microscopy & Siemen’s Accuson Elastography
2019
DNA fragmentation Index test in semen
2020
Integrated modular solution for Immunoassay & Chemistry assays
2020
COVID testing by RT-PCR in Telangana & AP
2021
Philips DS Achieva with Ambient Experience
2022
‘Walk-in Walk-out Dual source CT’ and ‘BioMatrix 3T’
16
Our Pillars of Strength
1
5
2
4
One of the leading players in India’s high growth diagnostics market
Integrated diagnostics provider offering one-stop solution
3
High brand recall driving customer stickiness
Robust technical capabilities and state-of-the-art technology
Experienced Board and strong management team
17
Indian Diagnostics Market expected to Grow at a Healthy Trajectory
Indian Diagnostics Market
Segment-wise breakup of Indian Diagnostic Market
(INR Bn)
Radiology
Pathology
980
+13% CAGR
684
472
FY17
FY20
FY23E
+13% CAGR
FY23E 275 - 285
FY20 190 - 195
South India
27% - 29%
FY20
71%-73%
Rest of India
980
43% - 44%
684
43%
+13% - 14% CAGR
+14% CAGR
56% - 57%
+12% CAGR
57%
+12% - 13% CAGR
FY20
FY23E
472
41%
59%
FY17
Source: CRISIL Report
18
One of the leading players in India’s high growth diagnostics market
Telangana and Andhra Pradesh Market Size
Vijaya’s Core Geographies
Telangana and Andhra Pradesh (44 - 46% of South India)
+14% CAGR
87
59
(INR Bn)
120 -130
Nizamabad
Karimnagar
Mancherial
Hanamkonda Kazipet
Warangal
Dominant Position in Telangana & Andhra Pradesh
FY17
FY20
FY23E
Growth Drivers: •
Rising NCDs in the states
•
•
•
•
Increasing share of aged population
Rising health awareness
Increasing health insurance penetration
Conducive government healthcare schemes
Sangareddy
Shamshabad
Shadnagar
Wanaparthy
Hyderabad & Secunderabad
Kurnool
Nandyal
Nellore
Tirupati
Vishakhapatnam
Rajahmundry
NCD: Non Communicable diseases
Source: CRISIL Report
19
Integrated Diagnostic service provider with extensive network…
Customers
Samples
Customer (Walk-in) Home Collection B2B Hospitals & Labs
Vijaya Diagnostic Centre
Flagship Centre #1
Hubs #28
Spokes #92
National Reference Lab
#1
Reference Lab
#16
Sample Flow Patient Flow
Flagship Centre = Lab Sample Collection + Basic Radiology + Complete Advanced Radiology (MRI, CT Scan, SPECT & PET CT) Hubs = Lab Samples Collection + Basic Radiology + Advanced Radiology (MRI / CT Scan / SPECT) Spokes = Lab Samples Collection + Basic Radiology Basic Radiology = ECG / X-ray / USG / Mammography / BMD / TMT / 2D Echo / EEG / ENMG / Endoscopy, etc.
20
…offering One-Stop Solutions for Pathology & Radiology
Complete Range of Diagnostic Services under One Roof Comprehensive and high quality integrated diagnostic services through our operational network
21
High brand recall driving customer stickiness
Customer Centric Approach
Quality Diagnostic Services
Higher brand recall
High share of walk-in customers
Sticky individual customer
“One of the Best Healthcare Brands 2021” by The Economic Times in 2021
“For excellence in Quality and Accuracy” under the category Leading Diagnostics company with Excellence in Quality and Safety at the Diagnostics Leadership Summit in 2021
B2C Revenue
93%
92%
95%
94%
90%
FY19
FY20
FY21
FY22
FY23
Operational Metrics
(INR)
1,228
1,214
1,431
1,276
1,446
454
475
631
562
573
FY19
FY20
FY21
FY22
FY23
Revenue per footfall
EBITDA per footfall
22
Robust Technical Capabilities with State-of-the-art IT Infrastructure
23
8
CT Machines
PET CT / Gamma machines
24
MRI Machines
8
200+
Radiologists, Lab Doctors & Physicians
13
NABH Accreditations
NABL Accreditations
Key Suppliers
Advanced Software to Manage Clinical Data
Advance Laboratory Information Management System (LIMS)
Fully Integrated Radiology Information Systems (RIS) and Picture Archive and Communication Systems (PACS)
Front end IT infrastructure enabling…
• Long standing relationship with medical technology vendors
• At the forefront of introducing new tests by
adopting the latest medical
technologies
• Among the first diagnostic service provider in South India to offer PET-CT scan
in 2008
Standardization across our operations
incidence
Reduce errors due Human Intervention
to
of Low
Monitor Operations
Technical
Closely track key performance metrics and maintain the Turn- Around Time (TAT)
Provide Uniform Experience to booking from customers accessing to appointments reports online
23
Doctors connect program
Indian Medical
Vijaya Diagnostic Centre, in association with Association organized continuing medical education (CME) on nuclear medicine in Vizag on 28th July 2023
a
Vijaya Diagnostic Centre, in association with Warangal Orthopaedic Surgeons Association organized a continuing medical education (CME) on Radiology in Hanamakonda on 8th July 2023
Warangal
Vijaya Diagnostic Centre, in association with & Obstetrics Gynaecological Society organized a continuing medical education (CME) on laboratory Services in Warangal on 5th August 2023
24
Experienced Board of Directors
Dr. S Surendranath Reddy – Founder and Executive Chairman ▪ Founder of Vijaya with 40+ years of experience in building Vijaya as South
India’s largest integrated diagnostic chain
▪ Holds Bachelor’s degree in Medicine and Doctor of Medicine in Radiology
Dr. D Nageshwar Reddy - Non-executive, Independent Director
▪ Chairman of Asian Institute of Gastroenterology (AIG), Hyderabad ▪ Awarded Padma Shri and Padma Bhushan by Government of India ▪ D.M in Gastroenterology from PGIMER Chandigarh
Ms. Suprita Reddy - Managing Director and Chief Executive Officer
Shekhar Prasad Singh - Non-executive, Independent Director
▪ With Vijaya since 2003 and heads overall strategy, clinical excellence,
▪ Ex-Chief Secretary to Government of Telangana
operations and expansion of the company
▪ Awarded Women Leadership Award in Healthcare by ABP
▪ Holds bachelors degree in commerce from Osmania University
▪ Retired IAS officer of 1983 batch
Sunil Chandra Kondapally - Executive Director
Satyanaryana Murthy Chavali - Non-executive, Independent Director
▪ Been with Vijaya since 2002 and 17+ years of experience in healthcare
▪ Holds Bachelor’s degree in Electrical Engineering from Florida State
University
▪ Ex-CEO of Aurigene Discovery Technologies Ltd.
▪ Holds BTech from IIT, Madras and MBA from IIM, Bangalore
S Geeta Reddy - Non-Executive Director
Dr. Manjula Anagani - Non-executive, Independent Director
▪ Enrolled as advocate with Andhra Pradesh High Court in 1986
▪ Holds a Bachelor’s degree in Law from Osmania University
▪ Clinical Director and Head of Department of centre of women and childcare at
Care hospitals
▪ Awarded Padma Shri by Government of India ▪ MD in Obstetrics and Gynecology from N.T.R. University of Health Sciences
25
Strong Management Team
Dr. S. Surendranath Reddy
Ms. Suprita Reddy
Mr. Sunil Chandra Kondapally
Mr. Narasimha Raju K.A
Founder and Executive Chairman
Managing Director and Chief Executive Officer
Executive Director
Chief Financial Officer
Mr. Sheshadri Vasan
Mr. Sivaramaraju Vegesna
Mr. Hansraj Singh Rajput
Chief Operating Officer
Head – Strategy and Investor Relations
Company Secretary & Compliance Officer
26
Awards & Accolades
Best Healthcare Brands
Excellence In Comprehensive Diagnostic Care
As one of the ‘Most Preferred Workplace 2022’
Most Trusted Brand of the Year 2023
Best Healthcare Brands 2022
Pride of India Brands Award 2022
2023 The Economic Times
2023 ABP Ananda Swasthya Samman
2022 - 23 Brought to you by Team Marksmen
2023 Presented by Marksmen Daily
2022 Presented by The Economic Times
2022 Presented by The Best of South Awards
One of the Best Healthcare Brands 2021
Indo Global Award for Healthcare Excellence
Company of the Year - Healthcare
Leading Diagnostic Chain of the Year
India’s Greatest Brands 2020- 21 Pride of Nation
India’s Greatest Brands 2020- 21 Pride of Nation
2021 Presented by The Economic Times
2021 Presented by Indian Economic Development & Research Association
2021 Presented by TV9 Network and SAP
2021 Presented by Diagnostic Leadership Summit
2021 Presented by United Research Services
2021 Presented by United Research Services
Leading Diagnostics with Excellence in Quality & Safety
Most Trusted and Best Quality Diagnostic services in India
Healthcare Entrepreneur of the Year – Dr. Surendra Reddy
Fastest Growing Brands (Pride of the Nation)
Best Diagnostic Centre of the Year
Leading Chain of Diagnostics & Imaging
2021 Presented by Diagnostic Leadership Summit
2020 Presented by Times Healthcare Achievers
2019 Presented by Six Sigma Healthcare
2019 Presented by United Research Services
2019 Presented by Times Healthcare Achievers
2019 Presented by Indian Medical Association, Telangana state and Messe India
27
Shareholding Pattern as of 30th June 2023
Others
FII’s
20.3%
19.0%
5.7%
DIIs
As on 30th June 2023 DII’s: Mutual Funds, AIF’s and QIB’s Others: Retail, Bodies Corporate and others
Promoter & Promoter group
55.0%
Marquee Institutional Investors
Wasatch Advisors
Nippon Life India
Aberdeen Standard Investments
Prudential ICICI Trust Ltd.
Axis MF
DSP Healthcare Fund
Mirae MF
Verdipapirfondet Odin Emerging Markets
28
Strategy Going Forward
Deepen Footprint in our Core Markets - Telangana & Andhra Pradesh
Nizamabad
Sangareddy
Mancherial
Karimnagar
Hanamkonda Kazipet Warangal
Shamshabad Shadnagar
Wanaparthy
Kurnool Nandyal
Hyderabad & Secunderabad
Vishakhapatnam
Rajahmundry
Nellore
Tirupati
Leveraging Existing Presence
Given under-penetration of diagnostic market, we will continue to focus on
Opening additional diagnostic centres through owned model
Expanding network through setting up spokes and hubs in existing catchment areas
Adding reference laboratories in our existing core geographies
Consolidate Leading Position
Given our significant presence and operational experience in Telangana and Andhra Pradesh, we intend to deepen our penetration and increase customer base by
Enhancing laboratory capacity and test menu by adding latest technologies
Offering value added services
Physician engagements (by conducting continuous medical education programs)
30
Expand in Adjacent Geographies & East India
Network (FY22)
South India Strategy
◼ Expand in concentric circles given our
hub and spoke model
◼ Establish presence in adjacent
geographies
◼ Identified key cities and towns which are
underserved and our brand is well- regarded
◼ Wider geographic reach will expand our
customer base leading to better profitability by leveraging our infrastructure
AP: Andhra Pradesh
88
31
Hyderabad
Rest of Telangana and AP
2
Others
East India Strategy
◼ Expand presence in East India given
growing demand
◼ Replicate our successful hub and spokes
model in East India
◼ Established a hub in Kolkata and plan is to
set up additional diagnostic centres around it
◼ Hence, Kolkata to be our focus area for
medium to long term growth
31
Continued Focus on Providing Customer Centric Services and Offerings
Preventive and Wellness Testing to Boost Demand for Diagnostics
FY20E
Industry Size
FY23P
CAGR: ~20%
101-108
61-68
Rest of the market 90%
Wellness & Preventive 9% - 10%
Wellness & Preventive 11%
Rest of the market 89%
FY20
FY23
Key Drivers
Our Strategy
◼ Increasing chronic and lifestyle diseases ◼ Corporate tie-ups ◼ Increasing disposable income ◼ Increasing service offerings
◼ Increase diagnostic services by offering additional preventive and wellness services through adoption of
new cutting-edge diagnostic testing technology
◼ Providing home collection services and point-of-contact testing to complement walk-in ◼ Expand specialty tests, disease specific profiles and provide customized packages ◼ Grow our corporate customer base by catering to their needs ◼ Expansion of chronic disease management and wellness programs
Source: CRISIL Report
32
Financial & Operational Highlights
Robust Operational Metrics
Diagnostic Centre (Nos)
Footfalls (Mn)
Tests Performed (Mn)
121
95
73
80
61
3.62
3.18
2.79
2.63
2.38
10.05
9.32
6.99
7.91
7.09
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
Test per Footfall (Nos)
Revenue per Test (INR)
Revenue per Footfall (INR)
2.93
2.83
Impact of COVID-19
3.17
2.69
2.57
531
496
457
419
428
1,431
1,446
1,228
1,214
1,276
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
34
Consistent Financial Performance
Revenue
CAGR:12%
3,388
3,767
2,926
4,624
4,592
EBIDTA
CAGR:14%
2,037
1,820
1,660
1,326
1,081
PAT
CAGR:17%
1,097
845
846
625
459
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
EBIDTA Margin (%)
260 bps
44.1% 44.1%
39.1%
37.0%
39.6%
PAT Margin (%)
270 bps
18.5%
15.7%
22.4% 23.7%
18.4%
(INR Mn)
Note: Refer Slide no. 4
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
35
Sustainable Cash Generation & Increasing Return Ratios
Cash & Cash Equivalents
CFO / EBIDTA (%)
(INR Mn)
1,729
1,215
2,277
2,466
2,554
90%
84%
80%
78%
77%
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
RoCE Pre-Cash (%)
RoE (%)
43%
38%
30%
33%
25%
22%
23%
23%
23%
16%
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
ROCE (Pre-cash): PBIT ex Other income / (Total Assets – Cash – Current Liabilities)
CFO = Cash flow from Operations
36
Annexure
Consolidated Profit & Loss Account
Particulars
Revenue from operations
Cost of materials consumed
Employee benefits expense
Other expenses
EBITDA
EBITDA %
Other income
Depreciation and amortization expense
EBIT
Finance costs
Profit before Tax
Tax expenses
Profit after Tax before Minority Interest
Minority Interest
Profit after Tax
PAT %
EPS – Basic (INR)
Note: Refer Slide no. 4
(INR Mn)
FY23
4,592
589
785
1,398
1,820
39.6%
142
617
1,344
209
1,135
283
852
5.8
846
18.4%
8.29
FY22
4,624
715
707
1,165
2,037
44.1%
128
527
1,638
165
1,474
367
1,107
10
1,097
23.7%
10.76
FY21
3,767
571
574
962
1,660
44.1%
118
505
1,274
152
1,121
270
851
6
845
22.4%
8.28
FY20
3,388
439
624
999
1,326
39.1%
154
492
988
154
834
209
625
0
625
FY19
2,926
405
539
901
1,081
37.0%
104
396
789
135
653
190
463
4
459
18.5%
6.13
15.7%
4.50
38
Consolidated Balance Sheet
Assets
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
EQUITY AND LIABILITIES
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
NON-CURRENT ASSETS Property, plant and equipment Capital work-in-progress Goodwill Other intangible assets Right of use asset Intangible assets under development Financial assets - Investments - Other financial assets Deferred tax assets Income tax assets Other assets
CURRENT ASSETS Inventories Financial assets - Investments - Trade receivables - Cash and cash equivalents - Bank balances other than Cash and cash equivalents - Loans - Other financial assets Other current assets
5,777 2,940 271 53 22 2,223 6
0 90 83 2 85
4,436 1,966 341 53 14 1,672 1
0 75 89 2 223
3,022 1,358 82 53 6 1,260 12
0 122 61 6 61
2,959 1,398 93 53 10 1,254 4
0 55 16 9 67
2,689 1,437 27 69 7 1,079 -
0 43 12 8 7
2,757 20
2,698 43
2,388 26
1,865 28
1,374 22
1390 95 242
542 98 110
276 64 67
922
1,813
1,876
36 51
0 51 41
0 52 27
547 80 556
626
1 5 22
688 91 96
430
4 26 17
EQUITY Equity share capital Instruments entirely equity in nature Other equity
5,466 102 - 5,364
4,695 102 - 4,593
3,592 45 - 3,547
2,741 45 - 2,696
2,069 45 24 2,000
NON-CURRENT LIABILITIES
2,406
1,778
1,377
1,494
1,422
Financial liabilities
- Borrowings - Lease liabilities - Other financial liabilities Provisions Other liabilities
CURRENT LIABILITIES Financial liabilities - Borrowings
- Lease liabilities
- Trade payables
- Other financial liabilities
Income tax liabilities
Provisions
Other liabilities
0 2,330 0 71 5
0 1,703 0 74 1
33 1,265 2 77 1
221 1,196 9 67 1
315 1,034 19 53 1
662
661
440
589
572
0
145
277
140
24
40
36
6
126
216
248
9
21
35
12
101
222
61
16
7
20
13
88
217
224
15
11
21
20
73
218
204
15
11
31
TOTAL ASSETS
8,534
7,135
5,409
4,824
4,063
TOTAL EQUITY AND LIABILITIES
8,534
7,135
5,409
4,824
4,063
39
(INR Mn)
Consolidated Cash Flow Statement
Particulars Cash Flow from Operating Activities Profit before Tax Adjustment for Non-Operating Items Operating Profit before Working Capital Changes Changes in Working Capital Cash Generated from Operations Less: Direct Taxes paid Net Cash from Operating Activities Purchase and construction of property, plant and building (net) Investments (net) Others Cash Flow from Investing Activities Cash Flow from Financing Activities Net increase/ (decrease) in Cash & Cash equivalent Cash & Cash Equivalents at the beginning of the period Cash & Cash equivalents at the end of the period
Cash and Cash Equivalents
Particulars Investments* Cash and cash equivalents Bank balances other than Cash and cash equivalents Total
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
1,135 683 1,818 90 1,908 -262 1,646 -1,248 734 887 -1,096 -419 131 110 242
Mar-23 1,390 242 922 2,554
1,474 572 2,046 -67 1,979 -399 1,580 -1,223 -127 120 -1,231 -306 44 67 110
Mar-22 542 110 1,813 2,465
1,121 534 1,655 -46 1,609 -312 1,297 -312 -1,033 47 -1,298 -488 -489 556 67
Mar-21 335 67 1,876 2,277
834 492 1,326 -32 1,294 -233 1,061 -375 11 57 -306 -295 460 96 556
Mar-20 547 556 626 1,729
653 431 1,084 8 1,092 -187 905 -591 -314 6 -898 -72 -65 161 96
Mar-19 688 96 430 1,215
40
(INR Mn)
*Current investments + investments with maturity more than 12 months (part of other non-current financial assets)
Thank You
Investor Relations Advisors
Citigate Dewe Rogerson (CDR India)
Mr. Anoop Poojari / Mr. Devrishi Singh Tel: +91 98330 90434 / +91 98205 30918
anoop@cdr-india.com / devrishi@cdr-india.com
Company
Vijaya Diagnostic Centre Limited (VDCL)
Mr. Siva Rama Raju Head – Strategy & Investor Relations +91 99485 95555 / +91 90597 00749
sivaramaraju.v@vijayadiagnostic.in ir@vijayadiagnostic.in
www.vijayadiagnostic.com
Corporate Office : #6-3-883/F, FPA Building, Near Topaz Building, Punjagutta, Hyderabad-500082, Telangana, India.