Vijaya Diagnostic Centre Limited has informed the Exchange about Investor Presentation
November 07, 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 Q2 FY 2024 results and which would be used in the Investors / Analysts earnings conference call scheduled to be held on November 08, 2023 at 11:30 A.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
HANSRAJ SINGHDigitally signed by HANSRAJ SINGH Date: 2023.11.07 14:05:48 +05'30' Q2 & H1FY24 Earnings Presentation, November 07 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
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. 93.3 Mn and Rs. 172.4 Mn for the quarter & half year ended
September 30, 2023 respectively.
o The Profit after tax (PAT) is higher by Rs. 69.8 Mn and Rs. 129.0 Mn for the quarter & half year ended
September 30, 2023 respectively.
3
Q2 FY24 – Performance Snapshot (Y-o-Y & Q-o-Q)
Revenue
Non Covid Revenue1
EBIDTA
Q2 FY24
Q2 FY23
YoY %
Q1 FY24
QoQ %
1,389
1,387
574
1,207
1,172
487
15%
18%
18%
1,210 GR % 1,206
481
15%
15%
19%
EBIDTA Margin
41.3%
40.4%
90 BPs
39.8%
150 BPs
Total tests
Non-Covid Tests
(INR, millions)
3.03
3.02
2.62
2.57
15%
18%
2.62
2.62
15%
15%
Note 1 : Non-COVID revenues constituted 99.9% of the Revenue from operations in Q2FY24
Q2 FY24 – Performance Snapshot
Operational & Financial Highlights – Q2 FY24
3.03 Mn Tests
0.91 Mn Footfalls
123 Centres
95.0% B2C Revenue
INR 1,388.6 Mn Revenue from operations
INR 1,386.5 Mn Non-COVID Revenue2
+18.3%
+17.7%
Non COVID Revenue growth (YoY)
Non COVID test volume growth (YoY)
INR 573.7 Mn EBIDTA
41.3% EBIDTA Margin
INR 333.2 Mn Profit After Tax1
24.0% PAT Margin
Note 1: Refer Slide no. 3 Note 2 : Non-COVID revenues constituted 99.9% of the Revenue from operations in Q2FY24
5
H1FY24 – Performance Snapshot
Operational & Financial Highlights – H1 FY24
5.65 Mn Tests
1.70 Mn Footfalls
123 Centres
95.0% B2C Revenue
INR 2,599.1 Mn Revenue from operations
INR 2,592.6 Mn Non-COVID Revenue2
+18.7%
+18.9%
Non COVID Revenue growth (YoY)
Non COVID test volume growth (YoY)
INR 1,054.8 Mn EBIDTA
40.6% EBIDTA Margin
INR 595.3 Mn Profit After Tax1
22.9% PAT Margin
Note 1: Refer Slide no. 3 Note 2 : Non-COVID revenues constituted 99.8% of the Revenue from operations in H1 FY24
6
Management comment
Commenting on the Q2FY24 results performance, Ms. Suprita Reddy, MD & CEO at Vijaya Diagnostic Centre Ltd. said:
“It gives me great joy to announce that the robust business performance in Q2 showcases a steady 18% year-on-year non-COVID revenue growth and an impressive 15% quarter-on-quarter rise, demonstrating the positive consolidation of our core business. Additionally, the wellness segment stood strong at 13% with the B2C segment maintaining a solid 95% contribution to total revenue.
Our newly established facility at Kolkata, West Bengal successfully completed 3 months of business operations, and the journey so far has been promising. Furthermore, in light of the demonstrated progress, we are hopeful of business scale-up as anticipated.
Our singular focus on addressing customer needs and differentiating ourselves in the diagnostic space through the 'All under one Roof' service model has consistently enabled us stand out as a distinctive brand. This holds good not only in our latest expansion at Mahbubnagar but in all our previous expansion endeavours.”
7
Key Financial Highlights – Q2 & H1FY24
Revenue from Operations
EBITDA & EBITDA Margin (%)
2,599
2,251
40.4%
39.8%
41.3%
39.4%
40.6%
1,207
1,210
1,389
487
481
574
886
1,055
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Shift YoY (%)
15.0%
15.5%
17.7%
19.0%
PAT & PAT Margin (%)
19.3%
21.6%
24.0%
18.1%
22.9%
233
262
333
408
595
Shift YoY (%)
42.9%
46.0%
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
(INR Mn)
Note: Refer Slide no. 3
8
Revenue Mix – Q2 & H1FY24
Radiology vs. Pathology Breakdown
Non-COVID & COVID Allied Breakdown
Radiology
Pathology
67%
33%
63%
64%
66%
64%
37%
36%
34%
36%
3%
97%
Non Covid
Covid
0%
100%
0%
100%
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Q2 FY23
Q1 FY23
Q2 FY24
Non-COVID YoY (%)
COVID YoY (%)
18.3%
-94.2%
B2C Contribution – Q2 FY24
Non Covid
Covid
B2B 5%
B2C 95%
3%
97%
H1 FY23
Non-COVID YoY (%)
COVID YoY (%)
0%
100%
H1 FY24
18.7%
-90.3%
(IN %)
9
Q2 FY24 – Progress On The Path Of Strategic Expansion
Mahbubnagar Facility
Penetrating Tier II Territory in Telangana: Unveiled a Standalone Hub Centre in Mahbubnagar – October 2023
• Maintaining momentum attuned to expansion into tier II and tier III cities within core geographies, we announce the establishment of a hub facility in Mahbubnagar, Telangana
•
•
This Centre is fully equipped to perform the whole gamut of diagnostics services from a routine blood test to advanced radiology modalities, right upto MRI
The company’s ‘All under one roof’ model sets a new standard in the diagnostic space in the district of Mahbubnagar
10
Pioneering Precision Diagnostics: Unveiling Facility At Mahbubnagar
11
PATIENT CENTRICITY REDEFINED – OPEN MRI AT AMEERPET
Ameerpet, Hyderabad
In line with our customer-oriented model of business and our single-minded focus towards achieving a holistic customer experience at all times, we have introduced an Open MRI at our center at Ameerpet. In addition to being the best in terms of capabilities and precision in the open MRI space, this technology enables an enhancement of the customer experience by addressing the aspect of greater comfort and the specific issue of claustrophobia, making it all the more convenient especially for children and elders.
12
Excellence Meets Enhancement – Upgrade Of Hub At Vishakapatnam
Old
New
Vishakhapatnam,
Andhra Pradesh
This quarter witnessed a comprehensive revamp of our main hub at Vishakhapatnam, after a decade long track record of stellar business performance. A significant upgrade to this advanced stand-alone hub was the introduction of a futuristic PET CT machine, Vijaya’s very first in Vishakapatnam.
13
Q2 & H1FY24 - Financial and Operational Discussions (Y-o-Y)
• Revenue from operations increased by 15.0% YoY to Rs. 1,388.6 Mn. Non-Covid revenue witnessed an 18.3%
YoY growth
Financial Performance Q2 FY24
o Non-Covid revenue growth was essentially volume driven. Furthermore, the up- trend both in radiology
and pathology segments reinforces the effectiveness of integrated business model
o The quarter’s Non-Covid business comprised 99.9% of revenue from operations as against 97.1% in
Q2FY23
o Wellness share in Q2FY24 was up at 13% as against 12% in Q2FY23, leading to QoQ growth of 19%
o Revenue contribution from B2C segment stood at 95%
•
•
EBITDA stood at Rs. 573.7 Mn. EBITDA margin for the quarter was 41.3% as against 40.4% in Q2FY23
o
Despite establishing new centers, the company successfully preserved its YoY margins
PAT stood at Rs. 333.2 Mn. translating into a PAT margin of 24.0% (refer slide no 3)
14
Key Operational Highlights
Tests Performed (# in Million)
Footfalls (# in Million)
Tests / Footfalls (# in Million)
4.86
5.65
1.60
1.70
3.34
3.32
3.33
2.63
2.62
3.03
0.85
0.79
0.91
3.09
3.04
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Revenue per Test (INR)
464
461
459
459
Revenue per Footfall (INR)
1,540
1,525
1,532
460
1,418
1,407
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
Q2 FY23
Q1 FY24
Q2 FY24
H1FY23
H1FY24
• Company recorded steady growth in No. of tests on YoY basis led by Non-COVID customers in Q2FY24
15
Consolidated Profit & Loss Account – Q2 & H1FY24
Particulars
Q2 FY24
Q2 FY23
Y-o-Y
Q1 FY24
Q-o-Q
H1 FY24
H1 FY23
Y-o-Y
Revenue from operations
1,388.6
1,207.5
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. 3
163.5
218.2
433.3
573.7
166.5
197.4
356.1
487.4
41.3%
40.4%
67.5
136.9
504.3
58.5
445.8
110.0
335.7
2.5
333.2
24.0%
3.3
33.0
159.0
361.4
48.7
312.7
78.0
234.7
1.4
233.3
19.3%
2.3
15.0%
-1.8%
10.5%
21.7%
17.7%
90 BPs
104.3%
-13.9%
39.5%
20.1%
42.6%
41.0%
43.0%
78.6%
42.9%
1,210.50
142.9
208.5
377.9
481.2
14.7%
14.4%
4.7%
14.7%
19.2%
2,599.1
2,251.1
15.0%
306.4
426.7
811.2
1,054.8
296.9
392.2
675.7
886.3
3.0%
9.0%
20.0%
19.0%
39.8%
150 BPs
40.6%
39.4%
120 BPs
57.1
124.7
413.6
58.8
354.7
90.9
263.8
1.8
262
18.3%
9.8%
21.9%
-0.5%
25.7%
21.1%
27.2%
38.9%
27.2%
124.6
261.6
917.8
117.3
800.5
201.0
599.5
4.3
595.2
22.9%
5.8
60.7
300.8
646.3
96.4
549.9
139.7
410.2
2.5
407.8
18.1%
4.0
105.0%
-13.0%
42.0%
22.0%
46.0%
44.0%
45.0%
72.0%
47.0%
480 BPs
45.0%
470 BPs
21.6%
240 BPs
43.5%
2.6
32.0%
(INR Mn)
16
*Not annualized
Company Overview
Vijaya at a Glance
Vijaya Diagnostic Centre Limited is the largest integrated diagnostic chain in South India with 123 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
123 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
~3.3 Mn Footfalls
~10.9 Mn Tests
Trusted by every Age group
Most preferred Diagnostic Centre
Footfalls & Tests for 12 months ended Sept 2023
Quality
Reliable & Accurate Diagnostics
at Affordable Prices
18
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
19
At the Forefront of Introducing New Technologies
1981
Ultrasound & Echocardiography
1986
Nuclear Medicine facility
1993
Fourth Generation CT Scan
1994
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’
20
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
21
…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
22
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
95%
95%
94%
93%
92%
90%
FY19
FY20
FY21
FY22
FY23
H1FY24
Operational Metrics
(INR)
1,228
1,214
1,431
1,276
1,446
1,532
454
475
631
562
573
622
FY19
FY20
FY21
FY22
FY23
H1FY24
Revenue per footfall
EBITDA per footfall
23
Robust Technical Capabilities with State-of-the-art IT Infrastructure
24
8
CT Machines
PET CT / Gamma machines
25
MRI Machines
8
250+
Radiologists, Lab Doctors & Physicians
14
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
24
Doctors connect program
Vijaya Diagnostic Centre organized a continuing medical on radiology Services in Nellore on 1st Sep 2023
education
Vijaya Diagnostic Centre, in association with Nellore Orthopaedic Association, continuing medical organized in education on Radiology Services Nellore on 12th August 2023
a
Vijaya Diagnostic Centre organized a continuing medical on radiology Services in Hyderabad on 11th Aug 2023
education
25
Doctors connect program
Vijaya Diagnostic Centre organized session on session on Spondyloarthropathy – Clinico Radiological Evaluation.
Vijaya Diagnostic Centre organized session on "PET CT for General physicians" on 2nd August 2023.
Vijaya Diagnostic Centre organized session ‘O’ RAD – Structural Reporting of Ovarian – Adnexal Masses on 13th Sep 2023
26
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
27
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
28
Awards & Accolades
Excellence In Comprehensive Diagnostic Care
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
2023 ABP Ananda Swasthya Samman
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
Pride of India Brands Award 2022
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
2022 Presented by The Best of South Awards
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
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
29
Shareholding Pattern as of 30th September 2023
Marquee Institutional Investors
Wasatch Advisors
Nippon Life India
Aberdeen Standard Investments
ICICI MF
Axis MF
DSP Healthcare Fund
Mirae MF
Verdipapirfondet Odin Emerging Markets
As on 30th September 2023 DII’s: Mutual Funds, AIF’s and QIB’s Others: Retail, Bodies Corporate and others
30
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)
32
Expand in Adjacent Geographies & East India
Network (Q2 FY24)
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
89
31
Hyderabad
Rest of Telangana and AP
3
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
33
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
35
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. 3
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
36
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 1 (%)
43%
38%
30%
33%
25%
22%
23%
23%
23%
16%
FY19
FY20
FY21
FY22
FY23
FY19 FY20 Note: Refer Slide no. 3
FY21
FY22
FY23
37
ROCE (Pre-cash): PBIT ex Other income / (Total Assets – Cash – Current Liabilities)
CFO = Cash flow from Operations
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. 3
(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
39
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
40
(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
41
(INR Mn)
*Current investments + investments with maturity more than 12 months (part of other non-current financial assets)
Thank You
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