Suraksha Diagnostic Limited has informed the Exchange about Investor Presentation
Date: 08 February 2025
To
The Secretary BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai - 400 001 Scrip Code: 544293
Dear Sir / Ma’am,
The Secretary The National Stock Exchange of India Limited
Exchange Plaza, Plot No. C/1. G Block
Bandra -Kurla Complex, Bandra (East)
Mumbai- 400 051 Scrip Symbol : SURAKSHA
Reg: Disclosure under Regulation 30(6) of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015
Sub: Presentation to be made at the Analyst(s) / Investor(s) Meet/ Conference- Earnings Call
Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and further to our intimation dated 03 February 2025 regarding schedule of Analyst(s)/ Investor(s) Meet /Conference i.e Earnings Call on Monday, 10 February 2025, we are hereby enclosing a copy of Investor Presentation on the unaudited financial results (both standalone and consolidated) of the Company for quarter and nine months ended 31 December 2024.
The Investor Presentation will be exhibited at the aforesaid Earnings Call and the same will be available on the website of the Company at www.surakshanet.com.
Please note that the schedule of the aforesaid Earnings Call is subject to change. The changes might happen due to exigencies on the part of the Company/ Analyst(s)/ Investor(s).
This may please be informed to all the concerned.
For Suraksha Diagnostic Limited
_________________ Mamta Jain Company Secretary and Compliance Officer
Encl: As above
Suraksha Diagnostic Limited (Formerly known as Suraksha Diagnostic Private Limited) CIN: L85110WB2005PLC102265 Reg Office: 12/1, Premises No. 02-0327, DG Block, Action Area 1D, New Town,
Kolkata-700 156, West Bengal, India
E-mail: investors@surakshanet.com I Website: www.surakshanet.com Phone:(033) 6605 9750
Suraksha Diagnostic Limited Q3 & 9M FY25 Investor Presentation
Safe Harbor Statement
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Suraksha Diagnostic 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
Q3 & 9M FY25 Highlights
3
Consolidated Financial Performance – Q3 FY25
Total Income (₹ Mn)
EBITDA (₹ Mn)
PAT (₹ Mn)
31.2%
36.7%
31.7%
8.8%
15.2%
10.1%
+14%
681
601
527
+17%
245
189
162
+32%
102
60
45
Q3FY24
Q2FY25
Q3FY25
Q3FY24
Q2FY25
Q3FY25
Q3FY24
Q2FY25
Q3FY25
4
Consolidated Financial Performance – 9M FY25
Total Income (₹ Mn)
EBITDA (₹ Mn)
PAT (₹ Mn)
32.5%
34.8%
10.3%
12.7%
+14%
1,900
1,661
+22%
651
532
+42%
238
168
9M FY24
9M FY25
9M FY24
9M FY25
9M FY24
9M FY25
5
Profit & Loss Statement (Consolidated)
Particulars (Rs.Mn)
Q3 FY25
Q3 FY24
Y-o-Y
Q2 FY25
Q-o-Q
9M FY25
9M FY24
Y-o-Y
Revenue from Operations
Other Income
Total Revenue
Cost of Material Consumed
Employee Benefit Expenses
Other Expenses
EBITDA
EBITDA Margin (%)
Depreciation
Finance Cost
Profit before Tax
Profit before Tax(%)
Tax
Profit After Tax
PAT Margin (%)
EPS (As per Profit after Tax)*
595.13
5.99
601.12
61.03
112.87
238.67
188.55
31.68%
88.27
19.82
80.47
13.39%
20.62
59.85
10.06%
1.18
518.21
8.49
526.69
63.14
103.17
198.76
161.63
31.19%
79.19
20.25
62.19
11.81%
16.81
45.38
8.76%
0.87
14.13%
16.66%
29.40%
31.89%
667.54
13.13
680.67
79.31
110.21
246.07
245.07
36.71%
87.49
21.25
136.33
20.03%
34.77
101.56
15.21%
1.94
1869.98
1635.21
30.29
25.72
-11.69%
1900.27
1660.92
14.41%
-23.06%
-40.98%
-41.07%
206.71
326.87
715.86
650.84
34.80%
265.69
63.22
321.93
206.75
310.72
611.77
531.69
32.52%
242.39
67.10
222.20
16.94%
13.38%
83.86
238.07
54.15
168.05
12.73%
10.28%
4.69
3.21
22.41%
44.88%
41.67%
* Not Annualised
6
Company Overview
7
Business at a Glance
as of 31st December, 2024
9
Labs
53
Diagnostic Centres
187
0.90 Mn
Patients Served (9M FY25)
4.87 Mn
Tests Performed (9M FY25)
₹ 2,084
Revenue per patient (9M FY25)
295
Doctors
3
26
CT Machines
14
Collection Centres
NABL accredited labs
MRI Machines
Note: National Accreditation Board for Testing and Calibration Laboratories (NABL)
₹ 725
EBITDA per patient (9M FY25)
₹ 208 Mn
Revenue per lab (9M FY25)
8
Evolution to the Largest Integrated Diagnostic Chain in East India
1992
Built fully comprehensive diagnostic centre, under brand ‘Suraksha’
2010
5 centres
2007
2013
2016
Received second round of funding from OrbiMed
Exit of Lighthouse Funds
25 centres
4 Labs
2024
53 centres
9 Labs
2020
IPO and listing on BSE and NSE
Launched the first centre of the Company
1 centre
Received first round of funding from PE investor Lighthouse Funds
Acquisition of 2 pre- existing diagnostic centres in Kolkata from Future Medical & Research Trust
9
Deeply Entrenched in the vital Geography of West Bengal
•
•
•
4th most populous state in India Fragmented market with low penetration of chained diagnostic centers Accounted for 95.5% of FY24 Revenue from operations
Bihar
Assam
West Bengal
Meghalaya
2
2
50 Centers in West Bengal
1
No. of centres
>10 centres
3 centres
2 centres
1 centres
Population Legend
No. of people >8.5 mn
6.0 – 8.5 mn
4.0 – 6.0 mn
2.0 – 4.0 mn
<2.0 mn
10
1
3
21
2
11
1
2
2
1
1
Hub & Spoke Operating Model
Modalities Offered
Key Stats
s e r t n e C b u H
s e r t n e C e k o p S
Large
Centres
Medium Centres
Small Centres
Note: 1) as of March 31, 2024
MRI
CT Scan
USG
Gastroenterology Neurology
Pathology
X-Ray
Cardiology
Mammo
OPG
Dexa
CT-Scan
USG
X-Ray
Neurology
Cardiology
Pathology
USG
X-Ray
Cardiology
Pathology
# of doctors & employees / centre
Area
30-40
5,000 – 8,000 sq. ft
20-25
2,500 – 5,000 sq. ft
12-15
1,500 – 3,500 sq. ft
11
Demonstrated success in Kolkata region with significant potential for future growth2
…..with Demonstrated Success
Operational Network(1)
1 Central Lab
8 Satellite Labs
14 Hub Centres
(co-located with hub centres)
(equipped to conduct all pathology sample collection, basic and advanced radiology tests)
11 Medium Centres
24 Small Centres
4 PPP
187 Sample Collection Centres
Spoke Centres
(equipped to conduct all pathology sample collection and certain basic & intermediate radiology tests)
Enhanced brand penetration through ability to serve more customers
Unlocks economies of scale
Hub centres Offers pathology tests, basic & advanced radiology tests
Spoke centres Offers pathology tests, basic and intermediate radiology tests
Note: 1) as of 31st December 2024; 2) Map illustrating the ‘hub and spoke’ model in the diagnostic centre network in Greater Kolkata, representing clusters formed by combining the hub centres and spoke centres
12
Well-established Operational Network - Greater Economies of Scale
Report Flow
Patient
Image/Report Flow
Image Flow
Patients Flow
Doctor
Polyclinic Doctor
Hospital
Customers
Samples
Sample Flow
Patient Flow
Suraksha Diagnostic Limited| Investor Presentation
P.A.C.S (Software)
RAD (Scrutiny)
IMAGE (Report)
#14
Hub Centre
#39
Spoke Centre
Collection Centre #187
Home Collection
#1 Flagship Reference Lab
#8
SATELLITE LAB
13
Customer Convenience through Value Added Services
Customer Centric Approach
Value Added Services enhancing customer experience and convenience
Home Collection
SMS Alerts
Polyclinic Chambers
Online Bookings
Allows samples to be collected from the consumers’ locations, such as their homes or offices
Customers receive an SMS to download the report through email or web portal
Polyclinic chambers hosting doctors providing out-patient consultation
Customers can book appointments and access test reports online
Supported by IT Infrastructure
LIMS
RIS
PACS
ERP
Laboratory Information Management System
Fully integrated Radiology Information Systems
Picture Archive and Communication Systems
Enterprise Resource Planning
Streamline operations
Reduce margin of error
Maintain the TAT
Customer convenience
14
More convenience through online test bookings, consultations and digital test results
Dynamic and Diverse Management Team to deliver the Next Phase of Growth
Dr. Somnath Chatterjee Chairman of the Board and Joint Managing Director
Ritu Mittal Joint Managing Director & Chief Executive Officer
Associated with Suraksha since incorporation; 32+ years of experience in medical and diagnostics business
Holds bachelor’s degree in medicine and surgery from University of Calcutta and is registered with West Bengal Medical Council
Associated with Suraksha since incorporation; 28+ years of experience in the medical and diagnostics business
Cleared the examination for a bachelor’s degree in commerce from the University of Calcutta
Amit Saraf Chief Financial Officer
Mamta Jain Company Secretary & Compliance Officer
15+ years of experience including with Balrampur Chini Mills Limited, Hindustan National Glass and Industries Limited, Niti International Limited and Must Garments Limited, Hong Kong. Holds bachelor’s degree in commerce from University of Calcutta and is an associate member of the Institute of Chartered Accountants of India
9+ years of experience including with VISA International Limited and Dollar Industries Limited. Holds bachelor’s degree in commerce from University of Calcutta, associate member of ICSI , member of the ICWAI and diploma in business administration from Symbiosis Centre for Distance Learning
Balgopal Jhunjhunwala General Manager, Finance
15+ years of experience
Holds bachelor’s degree in commerce from University of Calcutta
Niren Kaul Chief Sales Officer
22+ years of experience, including with Bharti Hexacom Limited and Bharti Infratel Limited. Holds bachelor’s degree in electrical engineering from Pandit Ravishankar Shukla University, Raipur and master’s degree in business administration from University of Pune
15
Strategy and Outlook
16
Leveraging Strengths to drive Competitive Advantage
01
02
03
04
Largest diagnostic chain with a dominant position in Eastern India; well-positioned to benefit from the high-growth opportunity for organized diagnostic chains in the fragmented markets in Eastern and North- Eastern India
Integrated diagnostics provider with one-stop solution offering pathology & radiology testing, and medical consultation services
Technologically advanced clinical infrastructure and trained personnel ensuring high quality and reliable diagnostic services
High brand recall and commitment to superior quality, driving high individual consumer business share and customer retention
05
Track record of profitability and consistent financial performance
06
Management team with robust industry experience
17
Key Differentiating Factors
Polyclinic
Diversified in terms of revenue from services
132
Chambers1
750+
Doctors1
Omnichannel medical consultation services via online and offline modes through diagnostic centres which house the polyclinic chambers
Model of integrated pathology, radiology and medical consultation services offers significant barriers to entry
Comprehensive suite of 2,300+ diagnostic tests1
45%
55%
12%
88%
Pathology
Radiology
Routine
Specialized
Basic / Intermediate
Advanced
Note: 1) as of 31st December 2024
Revenue
50%
46%
4%
Pathology
Radiology
OPDConsultation
Revenue contribution from Pathology, Radiology and OPD Consultation (% of 9M FY25 revenue)
18
Strategies to Drive Future Growth
Strengthen position in core geography
Expand in adjacent geographies of Eastern and North- Eastern India
Supplement organic growth with selective acquisitions
Leverage technology to elevate customer experience
Increase share of medical consultation services at diagnostic centres
Engage in Business- to-Business (“B2B”) and corporate partnerships
01
02
03
04
05
06
19
Targeting Organic and Inorganic Opportunities in Core and Adjacent Markets
Consolidate leading position in the core geography by
Expand in adjacent geographies of Eastern and North-Eastern India
Supplement organic growth with selective acquisitions
Open additional diagnostic centres and increase franchisee partnerships with local entrepreneurs
Enhance the laboratory capacity and test menu by adding latest technologies
Increase home collection services
Identify key locations in Eastern and North-Eastern India
Replicate the (a) ‘hub and spoke’ model to unlock economies of scale (b) polyclinic model to drive higher number of patient footfalls
Build spoke centers around the existing hub centers in Bihar, Guwahati and Meghalaya
Selective acquisitions of and/or strategic partnerships with local diagnostic centres across Eastern and North-Eastern India
Factors while evaluating acquisition targets • Brand recognition • Customer base • Technical capability and resources
Set up more hub centres to form new clusters, and spoke centres in existing clusters
Wider geographic reach will expand the customer base as well as improve the profitability by allowing to better leverage the infrastructure
Leverage technology to elevate customer experience
Increase share of medical consultation services at diagnostic centres
Engage in Business-to-business (“B2B”) and corporate partnerships
Create a convenient one-stop solution through integration of digital technology, artificial intelligence and machine learning
Increase the touch points and engagement with customers through digital and technological initiatives
Set up more polyclinics in the existing diagnostic centres, and increase the number and specialties of doctors associated
Enhance revenue from the B2B segment to further diversify revenue mix and increase customer base & brand penetration
Achieve higher footfalls, tests per patient, and average revenue per patient
Actively seek institutional customers through referrals or internal lead-generation
20
Industry Overview
21
Industry: Poised for High Growth; Shifting Towards Organized Market
Diagnostic market expected to grow at 10-12% CAGR between FY24 & FY28
Organized players gaining market share from standalone labs at a steady rate
36-40%
13- 17%
45-49%
FY201
20- 24%
36-40%
35-39%
FY24E1
Diagnostic chains
Hospital Based
Standalone
Estimated break-up of the Indian diagnostics industry
CAGR 10-12%
1,275-1,375
860-870
FY24E
FY28P
Indian Diagnostic Industry (INR bn)
Pathology
56%
Radiology
44%
Radiology expected to grow at a relatively faster pace
CAGR 9-11%
700-755
480-490
FY24E
FY28P
CAGR 11-13%
570-620
375-385
FY24E
FY28P
Radiology Market (INR bn)
22
Segment wise break-up of diagnostics market (FY24E)
Pathology Market (INR bn)
Source: CRISIL Report Note: 1) For FY20 & FY24E, Multiregional Chains account for 35-40% & 34-38% respectively of the overall Diagnostic Chains; For FY20 & FY24E, Regional Chains account for 60-65% & 62-66% respectively of the overall Diagnostic Chains
Eastern India - An “Underserved” Market with Premium Pricing
Disparity in access to accredited testing services in Eastern(1) India relative to population needs
Region has the lowest number of NABH accredited hospitals
East India(1) market also offers premium pricing for diagnostic tests
2.50
430
1.62
1.60
Average: 1.61
187
227
0.96
North
South
West
East¹
North
South
West
70-80
55-65
80-90
80-90
North
South
West
East & North East1
Average: 179
50
East & North East
1
# NABL labs per mn population (Feb 2024)
# Region wise NABH accredited hospitals
Region-wise average diagnostic test expenditure(2) (INR)
East India(1) has the highest share of population, yet the lowest share of Indian diagnostics market
East India(1) diagnostics market is expected to grow at 10.5-12.5% CAGR between FY24 and FY28
West Bengal diagnostics market is expected to grow at 10.5-12.5% CAGR between FY24 and FY28
INR (bn)
CAGR 10.5-12.5%
260-280
INR (bn)
CAGR 10.5-12.5%
170-180
% share of population in East India, FY24E(1)
% share of East India(1) diagnostics market, FY24E
FY24E
FY28P
Source: CRISIL Report Note: 1) East including Northeast region is defined as: Bihar, Jharkhand, Odisha, West Bengal, Chhattisgarh: Sikkim, Arunachal Pradesh, Assam, Tripura, Mizoram, Nagaland, Manipur, Meghalaya; 2) For non-hospitalization
61-63
FY24E
95-100
FY28P
23
Key Awards & Recognition
2017
Best quality in service delivery(1)
2019
Best customer service in healthcare(1)
2021
Business leader of the year(2)
2021
Awards & certificate of excellence(3)
2022
Outstanding diagnostic chain of eastern India(4)
2023
Certificate of excellence in exemplary trust & commitment towards diagnostic services(5)
Note: 1) Awarded by ABP News; 2) by the World Leadership Congress & Awards; 3) By Zee24 Ghanta; 4) by ABP Ananda; 5) at the Health Conclave 2023 organized by Zee24 Ghanta
24
Thank You
For further information, please contact:
Company :
Suraksha Diagnostic Limited CIN: L85110WB2005PLC102265 Email: investors@surakshanet.com
investors@surakshanet.com
Investor Relations Advisors :
Mr. Ashish Tendulkar +91 98209 53312 ashish.tendulkar@linkintime.co.in
Ms. Pooja Swami +91 98602 02359 pooja.swami@linkintime.co.in