Thyrocare Technologies Limited has informed the Exchange about Investor Presentation
Thyrocare Technologies Limited Quarterly Presentation – June 2021
Contents
Key Highlights – pathology Key performance indicators – pathology Income Statement – Thyrocare Revenue – source Revenue – type Revenue – geography Income Statement – Nueclear Revenue – centrewise Income Statement – Consolidated
1 2 3 4 5 6 7 8 9
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.
Key Highlights - pathology
1
Revenue ↑14%*
` 159 Cr
EBITDA
Margins
PAT
Margins
` 70 Cr
44%
` 48 Cr
30%
Free Cash Available ` 58 Cr
Aarogyam Samples 5.09 lacs
Sickness Samples 36.96 lacs
COVID RTPCR Processed 11.38 Lac
* Sequential quarter
Key performance indicators - pathology
2
Revenue (in crore) and EBITDA Margin (%)
200.0
43%
44%
36%
150.0
100.0
50.0
-
17%
100.50
54.40
139.16
159.26
Diagnostic revenue by source (in crore)
Diagnostic revenue by nature (in crore)
50%
40%
30%
20%
10%
0%
200.0
150.0
100.0
50.0
-
26.14
12.91
30.66
87.92
23.27
103.42
0.72
20.01
73.09
8.36
12.84 31.36
200.0
150.0
100.0
50.0
-
64.68
44.26
20.42
16.30 12.66 23.11
0.19
55.20
36.17
4.90
1.29
45.40
Q-Jun20
Q-Mar21
Q-Jun21
51.33
42.50 - - Q-Jun19
Q-Jun19
Q-Jun20
Q-Mar21
Q-Jun21
Q-Jun19
Q-Jun20
Q-Mar21
Q-Jun21
Revenue from operations
EBITDA Margin
B2B
B2C
B2G
COVID RTPCR
Antibodies
COVID related
Aarogyam Sickness
Key Metrics Revenue from operations (in crore)
Q-Jun19 100.50
Q-Jun20 54.40
Q-Mar21 139.16
Q-Jun21 159.26
EBITDA Margin (%)
43%
17%
36%
44%
Diagnostic revenue by source (in crore) B2B B2C B2G Diagnostic revenue by nature (%) B2B B2C B2G
Q-Jun19 73.09 20.01 0.72 Q-Jun19 78% 21% 1%
Q-Jun20 31.44 12.84 8.33 Q-Jun20 60% 24% 16%
Q-Mar21 87.92 30.66 12.91 Q-Mar21 67% 23% 10%
Q-Jun21 103.42 23.27 26.14 Q-Jun21 68% 15% 17%
Diagnostic revenue by nature (in crore) COVID RTPCR Antibodies COVID related Aarogyam Sickness
Diagnostic revenue by nature (%) COVID RTPCR Antibodies COVID related Aarogyam Sickness
Q-Jun19 - - - 42.50 51.33
Q-Jun19 0% 0% 0% 45% 55%
Q-Jun20 23.11 0.19 0.31 12.66 16.30
Q-Jun20 44% 0% 1% 24% 31%
Q-Mar21 20.42 1.29 0.85 44.26 64.68
Q-Mar21 16% 1% 1% 34% 49%
Q-Jun21 45.40 4.90 11.16 36.17 55.20
Q-Jun21 30% 3% 7% 24% 36%
Income Statement - Thyrocare YOY Revenue growth of 193% was primarily on account nationwide lockdown implemented during last year and erosion of business in april and may of previous FY. Sequential quarter Revenue growth of 14.4% was primarily on account of COVID testing of Rs. 45.4 crore. Covid related tests like IL-6, Dimer, PRACL,CRP, LDH, ABS, CRAT have contributed Rs. 16.06 crore on account of epidemic surge in COVID-19 cases since march and Non-COVID revenue contributed about 60% in Q122.
3
Income statement
INR in crore Revenue from operations Cost of goods sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income Profit before tax and exceptional items Exceptional item Share of profit in associate entity Tax expense Profit after tax Other comprehensive income Total comprehensive income
TTL
Variance (%)
TTL
Q-June19 Q-June20 Q-June21 159.26 (53.22) 106.04 (13.39) (21.96) 70.69 (5.80) (0.63) 2.67 66.93 - - (18.54) 48.39 (0.16) 48.23
54.40 (25.62) 28.78 (8.99) (10.28) 9.51 (4.48) (0.20) 1.49 6.32 - - 1.90 8.22 - 8.22
100.50 (29.52) 70.98 (10.66) (16.30) 44.02 (4.09) (0.32) 3.35 42.96 - - (12.86) 30.10 - 30.10
Q-June20 Q-June21 193% 108% 268% 49% 114% 643% 29% 215% 79% 959% -
(46%) (13%) (59%) (16%) (37%) (78%) 10% (38%) (56%) (85%) -
(115%) (73%) - (73%)
(1,076%) 489% 100% 487%
Revenue growth Gross margin % EBITDA% PAT%
Entity mix % - Revenue Entity mix % - EBITDA
n/a 71% 44% 30%
92% 97%
(46%) 53% 17% 15%
97% 112%
193% 67% 44% 30%
97% 99%
Revenue from operations – primarily comprised of Revenue from diagnostic services Rs. 153 crore and revenue from sale of consumables and digital rapid technology of about Rs. 7 crore. Revenue from diagnostic services includes revenue from COVID RTPCR of Rs. 45 crore, COVID related tests of Rs. 16 crore and Non Covid revenue of Rs. 55 crore. Diagnostic revenue growth in sequential quarter of 14% was primarily on account of increase in COVID RTPCR business from government and surge in demand due to second wave. Gross margin – was 67% of total revenue, revived back near to pre Covid period, after significantly impacted in interim due to impact of pandemic on non covid in particular preventive care business and higher cost of reagents for covid tests. Employee benefit expenses – was 8% of reported revenue, significantly lower as compared to pre COVID period due to contribution of additional COVID revenue for the quarter without much of addition of manpower and company has reduced the field marketing sales force in last two quarters. Other expenses - included service charges (6% of reported revenue for the quarter), sales incentives (2%), power and fuel (1%), repairs and maintenance (1%). Service charges increased due to increased home collection order, increase in covid business, increase in LME coverage, etc. Finance cost – Finance cost represents interest on amortization of financial liabilities during the quarter.
Revenue - source Revenue growth in the current quarter was significantly contributed by the surge in revenue from COVID tests. Covid revenue of Rs. 45.40 crore constitutes 30% of reported revenue, generated from 1.19 million COVID tests performed during the current quarter
4
Diagnostic services (in crore)
Q-Jun20 Q-Mar21
Q-Jun21
54.69
134.83
152.84
97%
97%
96%
COVID
Jun20
Mar21
23.11
20.42
44%
16%
Jun21
45.40
30%
COVID antibodies
Jun20
Mar21
Jun21
0.23
0.4%
2.36
2%
4.90
3%
Non COVID
Jun20
Mar21
Jun21
29.16
108.71
102.54
56%
83%
67%
Total Revenue (in crore)
Q-Jun20 Q-Mar21
Q-Jun21
54.40
139.16
159.26
B2B
B2G
B2C
Jun20 Mar21
Jun21
Jun20 Mar21
Jun21
Jun20 Mar21
Jun21
31.36
87.92
103.42
60%
67%
68%
8.29
16%
12.91
26.14
10%
17%
12.84
30.66
23.27
24%
23%
15%
Total reported revenue mainly consists of revenue from diagnostic services (96%-97%). Revenue from sale of goods consists of new sub segment of sale of rapid kits i.e. point of care testing kits, that generated revenue of about Rs. 2.31 crore and growing rapidly.
Contribution of B2G (Government) in total reported revenue of 17%, increased significantly in the
current quarter with surge in COVID RTPCR testing for NHM, Jharkhand, MCGM, Goa.
B2C revenue impacted mainly on account of lockdown and rising COVID cases due to 2nd wave. Contribution of COVID in total reported revenue of 30% increased due to government projects and B2B business pursuant to 2nd wave. Average realization per test was Rs. 382/-, compared to Rs. 516/- in previous quarter.
COVID antibody contributed during the quarter to the extent of 9 % of total reported revenue. Revival of Non COVID business was affected due to pandemic and resultant lockdown.
Sale of goods (in crore)
Q-Jun20 Q-Mar21
Q-Jun21
1.71
3%
4.33
3%
6.42
4%
Sale of consumables
Q-Jun20 Q-Mar21
Q-Jun21
1.71
2.88
3.62
Digital Rapid Technologies
Q-Jun20 Q-Mar21
Q-Jun21
-
1.45
2.80
Revenue – type Preventive care profiles under ‘Aarogyam’ contributed to 24% of total reported revenue in Q1. Covid constitutes 30%, Covid antibodies contributed 6% and other sickness tests contributed 64% of total reported revenue in Q1.
5
Average realization per sample for Aaorgyam profiles for comprehensive
increased with more demands preventive healthcare packages.
Though number of COID RTPCR performed are significantly higher as compared to any other earlier quarters, the average realization per COVID RTPCR test is significantly reduced over the last year, with government capping and aggressive pricing quoted for these tenders.
COVID related parameters including antibody profiles, RAT, Dimer, IL6, are contributing with rising demands for these tests to support treatment and study outcome of vaccination.
Non COVID- Non Aaorgyam revenue and workload has covid related disruptions and
revived inspite of lockdown during second wave.
B2G revenue mainly consists of
testing for NHM, Jharkhand, MCGM, Goa, the average reaslisation declined significanly mainly because of COVID RTPCR price caping.
Diagnostic revenueINR in croreNet revenueWorkload ('00,000s)Average realisation (INR)Q-June19Q-June20Q-June21Q-June19Q-June20Q-June21Q-June19Q-June20Q-June21Aarogyam42 13 36 8 3 5 513 495 711 COVID - 23 45 - 1 12 - 2,737 382 COVID antibodies - 0 5 - 0 2 - 345 229 Non COVID51 17 66 42 15 34 123 110 193 94 53 153 50 19 53 188 284 286 Diagnostic revenueINR in croreNet revenueWorkloadAverage realisation (INR)Q-June19Q-June20Q-June21Q-June19Q-June20Q-June21Q-June19Q-June20Q-June21B2B73 31 103 45 16 42 164 196 246 B2G1 8 26 0 1 7 765 362 B2C20 13 23 5 1 4 423 927 564 94 53 153 50 19 53 188 284 286 Revenue - geography Geographically west region contributes 71% of COVID RTPCR revenue and 35% of Non Covid revenue. Non COVID revenue % terms reviving back to pre covid contribution.
6
Revenue - Geography
61%
45%
32%
20%
9%
16%
19%
18%
13%
23%
16%
17%
5%
4%
2%
West
North
East
South
Cloud
Q-June19
Q-June20
Q-June21
Region-wise – West contributed 45% of reported revenue mainly on account of
COVID-RTPCR, due to NHL, Goa and MCGM business.
Non Covid business revived and contributing at par with Q-June19 proportion in
current quarter.
Revenue by geographyINR in croreRevenueMix %Variance %Q-June19Q-June19COVIDOTHERTotalCOVIDOTHERTotalCOVIDOTHERTotalCOVIDOTHERTotalWest30.0 22.6 9.2 31.8 31.7 37.6 69.3 32% 98% 31% 61% 71% 35% 45% North19.0 0.0 4.5 4.5 5.9 19.3 25.2 20% 0% 15% 9% 13% 18% 16% East17.4 0.5 6.5 7.0 4.9 22.2 27.1 19% 2% 22% 13% 11% 21% 18% South21.9 0.0 8.3 8.3 2.3 23.2 25.5 23% 0% 28% 16% 5% 22% 17% 88.3 23.1 28.5 51.6 44.8 102.3 147.1 94% 100% 97% 98% 100% 95% 96% International0.6 - - - - - - 1% - - - - - - 0.6 23.1 28.5 51.6 44.8 102.3 147.1 1% 100% 97% 98% 100% 95% 96% Cloud4.8 0.0 0.8 0.9 0.1 5.7 5.8 5% 0% 3% 2% 0% 5% 4% 93.7 23.1 29.4 52.5 44.9 107.9 152.8 100% 100% 100% 100% 100% 100% 100% Q-June21Q-June20Q-June20Q-June21 Income Statement - Nueclear Radiology business accounted for 3% of reported consolidated revenue of Thyrocare Group in current quarter. The contribution of radiology revenue has not increased despite of improvement in scan volumes, primarily due to increase in pathology revenue due to contribution of COVID RTPCR in pathology segment.
7
Income statement
Revenue from operations Cost of goods sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income Profit before tax and exceptional items Exceptional item Share of profit in associate entity Tax expense Profit after tax Other comprehensive income Total comprehensive income
Q-June19 9.47 (1.34) 8.13 (0.87) (5.94) 1.32 (3.32) (0.93) 0.14 (2.79) - -
NHL
Q-June20 1.87 (0.35) 1.52 (0.23) (2.43) (1.14) (2.49) (0.37) 0.05 (3.95) - -
(2.79)
(3.95)
(2.79)
(3.95)
Variance
NHL
Q-June21 Q-June20 Q-June21 188% 186% 189% 122% 34% (154%) (36%) (51%) 16,380% (279%) -
(80%) (74%) (81%) (74%) (59%) (186%) (25%) (60%) (64%) 42% -
5.39 (1.00) 4.39 (0.51) (3.26) 0.62 (1.60) (0.18) 8.24 7.08 - - 0.60 7.68 - 7.68
- 42% - 42%
100% (294%) - (294%)
Revenue growth Gross margin % EBITDA% PAT%
Entity mix % - Revenue Entity mix % - EBITDA
n/a 86% 14% (29%)
9% 3%
(80%) 81% (61%) (211%)
3% (13%)
188% 81% 12% 142%
3% 1%
Revenue from operations – Revenue from imaging services accounted for 3% of reported consolidated revenue of Thyrocare Group in current quarter. During the quarter, NHL operated 9 PET-CT scanners across 8 imaging centres. Revenue comprised of revenue from sale of FDG of Rs. 0.53 crore in current quarter. There is consistent increase in number of scans performed across all centres. Centres closed during the period included (a) Surat and Vadodara centres on account of dispute with the franchisee partner; (b) Raipur centre on account of low scan volumes and dispute; (c) Jaipur on account of transfer of business undertaking. EBITDA margin – of 12% is revived to pre-covid period, despite fall in the revenue from operations due to COVID. Nueclear has restructured arrangements for some of the centres that are not cost efficient. Nueclear transferred the Jaipur centre as is where is on 31 March and proposing to transfer another centre under similar arrangement to control on the costs.
In the current quarter, Nueclear disposed off the property at Navi Mumbai and the surplus is utilized for payment of borrowings.
Revenue - centrewise PET CT revenue revived after covid and subsequent lockdown impact in the current quarter with newer centre contributing in the imaging revenue was significantly impacted by 2nd wave. Nueclear has decided to either transfer/ close down centres with low scan count or with high expenses and thereby low net realization.
8
PET - CT revenue - By centre
INR in crore
Centre
Type
Start date
Q-Jun19
Q-Jun20
Q-Mar21
Q-Jun21
Q-Jun19
Q-Jun20
Q-Mar21
Q-Jun21
Q-Jun19
Q-Jun20
Q-Mar21
Q-Jun21
PET-CT revenue
Scan volume
Average realisation (INR)
Franchisee Franchisee Own Franchisee Franchisee Franchisee Own Franchisee
Mumbai - Prabhadevi Navi Mumbai Hyderabad Nashik New Delhi Aurangabad Bengaluru Borivali Operational centres as at 30 June 2021 Closed centres Surat Vadodara Raipur Jaipur Coimbatore
Franchisee Franchisee Franchisee Franchisee Own
Feb-18 Mar-13 Jun-14 Jul-18 Jan-14 Mar-18 Dec-18 Oct-20
Sep-16 Feb-17 Jun-17 Mar-18 Feb-19
1.12 1.29 1.26 0.51 1.40 0.48 0.21 - 6.27
0.80 0.59 0.22 0.47 0.15 2.23
8.50
0.46 0.35 0.03 0.42 0.02 0.26 - - 1.54
- - - 0.23 - 0.23
1.77
0.94 0.97 1.20 0.66 1.17 0.39 0.47 0.21 6.00
- - - 0.77 - 0.77
6.77
0.63 0.82 0.81 0.50 0.76 0.30 0.27 0.62 4.71
- - - - - -
4.71
1,098 1,159 1,187 402 1,332 379 168 - 5,725
659 534 174 357 120 1,844
7,569
410 306 23 293 15 172 - - 1,219
- - - 165 - 165
889 911 1,082 470 1,767 277 475 200 6,071
- - - 569 - 569
614 829 742 358 1,127 209 277 574 4,730
- - - - - -
1,384
6,640
4,730
10,218 11,094 10,611 12,699 10,502 12,724 12,591 n/a 10,953
12,080 11,079 12,871 13,124 12,277 12,080
11,227
11,319 11,380 11,478 14,451 11,200 15,186 n/a n/a 12,634
n/a n/a n/a 13,961 n/a 13,961
12,792
10,584 10,670 11,072 14,140 6,613 13,906 9,819 10,393 9,889
n/a n/a n/a 13,474 n/a 13,474
10,196
10,233 9,936 10,919 13,937 6,720 14,402 9,804 10,858 9,967
n/a n/a n/a n/a n/a n/a
9,967
Imaging revenue and number of scans performed during the current quarter were impacted to the extent of 30% due to second wave of covid in sequential quarters. Significant erosion in particular in metro cities like Delhi, Bangalore, Hyderabad in particular caused reduction in reported revenue. Per scan average realization however continued to be average Rs. 10k.
Income Statement - Consolidated Revenue growth of 12% (sequentially) in current quarter was primarily on account of COVID RT-PCR testing of Rs. 45.40 Crore, Covid antibodies and Covid related parameters of Rs. 16.07 crore; Non-COVID diagnostics revenue and imaging revenue decreased by 15% and 30% respectively.
9
Income statement
INR in crore
Consolidated
Consolidated
Consolidated
Common size (%)
Variance (%)
Revenue from operations Cost of goods sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income Profit before tax and exceptional items Exceptional item Share of profit in associate entity Tax expense Profit after tax Other comprehensive income Total comprehensive income
QE-June19 QE-June20 QE-June21 164.65 (54.22) 110.43 (13.91) (25.29) 71.23 (7.30) (0.62) 10.49 73.80 - (0.29) (17.94) 55.57 (0.17) 55.40
109.73 (30.86) 78.87 (11.53) (21.73) 45.61 (7.35) (0.47) 2.36 40.15 - 0.18 (12.86) 27.47 - 27.47
56.27 (25.96) 30.31 (9.22) (12.63) 8.46 (6.97) (0.32) 1.22 2.39 - (0.26) (1.90) 0.23 - 0.23
Revenue growth Gross margin % EBITDA% PAT%
n/a 72% 42% 25%
(49%) 54% 15% 0%
193% 67% 43% 34%
QE-June19 QE-June20 QE-June21 QE-June20 QE-June21 193% 109% 264% 51% 100% 742% 5% 94% 760% n/a -
100% (46%) 54% (16%) (22%) 15% (12%) (1%) 2% 4% -
100% (33%) 67% (8%) (15%) 43% (4%) (0%) 6% 45% -
(3%) 0% - 0%
(11%) 34% (0%) 34%
n/a n/a n/a n/a
(49%) (16%) (62%) (20%) (42%) (81%) (5%) (32%) (48%) (94%) - (244%) (85%) (99%) - (99%)
100% (28%) 72% (11%) (20%) 42% (7%) (0%) 2% 37% - 0% (12%) 25% - 25%
Revenue from operations – of Thyrocare Group primarily comprised revenue from (a) diagnostic services in TTL (95% of total revenue); (b) imaging services in NHL (3%); and (c) revenue from digital rapid technologies in TTL (2%). Diagnostic revenue growth in sequential quarter of 12% was primarily on account of increase in COVID RTPCR business from government and surge in demand due to second wave. Gross margin – was 67% of total revenue, after significantly impacted in interim due to impact of pandemic on non covid in particular preventive care business and higher cost of reagents for covid tests. Employee benefit expenses – was 8% of reported revenue, significantly lower as compared to pre COVID period due to contribution of additional COVID revenue for the quarter. Other expenses - incentives, power and fuel, repairs and maintenance. EBITDA margin – of 43% revived back to pre covid period with significant controls on raw material cost, employee benefit cost and other expenses.
included service charges, sales
Thank You
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