THYROCARENSE15 November 2021

Thyrocare Technologies Limited has informed the Exchange about Investor Presentation

Thyrocare Technologies Limited

Thyrocare Technologies Limited Quarterly Presentation – September 2021

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

Revenue ` 169 Crore

QoQ 6% ↑ YoY 14% ↑

EBITDA ` 87 Crore

EBITDA Margin 51%

PAT ` 61 Crore

PAT Margin 35%

Covid RTPCR 2130316

Non-Covid Samples 4193854

Patients Served 5290665

Total Tests 28286840

Revenue from operations of Rs. 169 Crore, primarily consists of Revenue from Covid of Rs. 69 Crore, mainly from Government contracts. Revenue for half year ended 30 September 2021 of Rs. 328 Crore grew by 62 % YOY, this despite reduced realization per test for Covid RTPCR tests. Covid related infectious parameters like IL-6, Dimer, PRACL,CRP, LDH, etc. have contributed about Rs. 18 crore on account of epidemic surge since march though the impact and the volume subsided in the second quarter. Non Covid business revived significantly in sequential quarters and reached to pre-Covid level. In particular the per sample and per patient realization improved across all the segments over the last few quarters.

Gross margin and EBITDA margin improved significantly on account of reduction in the cost of reagents/ consumables for Covid RTPCR tests, volume benefits in sourcing/ aggregating these samples at source and significant savings in the logistics cost apart from other administration costs in servicing this business segment. The current EBITDA margin however is not sustainable in the long run and largely depends on the Covid RTPCR related government business and the volume benefits in sourcing these samples.

Profits after tax too improved in absolute and in % margin terms due to increase EBITDA and margins.

2.13 million Covid RTPCR tests were processed in current quarter highest compared to any other earlier quarters.

6.40 million samples sourced from 5.29 million patients were processed during current quarter of which about 4.19 million samples were for non – Covid related tests/ parameters.

28.28 million tests were processed in the current quarter that includes standalone tests and tests included in the preventive care Aarogyam profiles.

Highest Revenue clocked in Q2FY22, mainly driven by the B2G Business

Revenue by sales channel (B2B,B2C and B2G) – INR Cr, %

66.2%

43.3%

18.0%

B2G

B2C

B2B

102

145

150

163

196

197

101

150

119

172

Q 1 '2 0

Q 2 '2 0

Q 1 '2 1

Q 2 '2 1

Q 1 '2 2

Q 2 '2 2

H 1 '2 0

H 1 '2 1

H 1 '2 2

B2B

77.9%

75.3%

59.8%

60.6%

67.7%

45.0%

76.6% 60.4% 55.7%

B2C

21.3%

23.3%

24.5%

22.1%

15.2%

15.8%

22.3% 22.7% 15.5%

313

• Company clocked highest Pathology crossed

sales segment INR 300 cr. In half year.

in Q2.

revenue

in Q2.

• B2B, B2C & B2G mix has changed B2B business has dropped from contributing ~68% to now contributing ~ 45% of the overall revenue. This is due bulk Covid Business to coming from B2G segment (~ 18% in Q1 to 40% in Q22)

• Contribution

B2G business and Covid business in the overall business lead to growth in revenue, this is far as we sustainable as continue to cater to this business.

A surge in patients witnessed due to high volumes of business coming from NHM Maharashtra

Patient count by sales channel (B2B,B2C and B2G) – Lacs, %

B2G

B2C

B2B

Rev/Patient

235

252

401

353

355

323

40 3

(10.0%)

15 1

36 2 3

46.7%

6 2

244

80 5

337

387

(36.3%)

51 3 4

500

300 88.2%

100

(100)

(300)

(500)

• The volume growth has exceeded revenue growth due to a steep reduction in COVID prices over the last year. This has also led to a decline per patient

revenue

• B2B patient volumes have over Q2FY22 fallen Q2FY21 due to reduction in Covid Business in line with the Country’s Covid Curve.

• B2B

NOVID

pricing increased by 70% in AA and by 20% in NAA in Q2’22 vs Q2’20 which led to decline in patients

Q 1 ' 2 0

Q 2 ' 2 0

Q 1 ' 2 1

Q 2 ' 2 1

Q 1 ' 2 2

Q 2 ' 2 2

H 1 ' 2 0

H 1 ' 2 1

H 1 ' 2 2

B2B

92.8% 91.0%

90.0% 84.3%

68.5% 55.6%

91.9% 85.9% 63.4%

B2C

6.0%

7.2%

5.2%

9.0%

4.7%

4.5%

6.6%

7.9%

4.6%

Significant uptick is observed in Covid business due to second wave

Revenue by Test Type (NOVID vs COVID) – INR Cr, %

Infectious

Covid

Non Covid

43.3%

- 23

- 0

0 -

102

66.2%

121

• Covid revenue increased sequentially on account of bulk business coming from B2G vertical

in Q2

• Covid however is expected to taper down steeply in Q3 onwards with the reduction in covid cases

• Non Covid revenue in Q2 is back to pre-covid levels

18.0%

- 0

196

108

174

Q 1 ' 2 0

Q 2 ' 2 0

Q 1 ' 2 1

Q 2 ' 2 1

Q 1 ' 2 2

Q 2 ' 2 2

H 1 ' 2 0

H 1 ' 2 1

H 1 ' 2 2

Non Covid

99.8% 99.8%

54.8% 55.3%

55.7% 58.4%

100% 55.2% 57.1%

Covid

44.4% 42.5%

33.4% 40.6%

43.1% 37.2%

Consistent surge in per patient revenue post-covid due to increase revenue share of Covid and preventive care business Patient count by Test Type (NOVID vs COVID) – Lacs, %

Infectious

Covid

Non Covid

Rev per Patient (NOVID)

252

235

272

207

0 0

(10.0%)

1 6

0 1

325

327

326

244

251

88.2%

- 0

(36.3%)

1 7

46.7%

Q1'20

Q2'20

Q1'21

Q2'21

Q1'22

Q2'22

H1'20

H1'21

H1'22

Non Covid

99.8% 99.8%

93.4% 81.4%

60.8% 57.6%

99.8% 84.9% 59.0%

Covid

6.0%

17.0%

31.5% 41.6%

13.8% 37.1%

significant, patient

• Growth in patient count is however not per is improved due to Covid and preventive care business.

revenue

tests/

profiles

• Rationalisation in prices of key and across affected geographies retain are patients and increase the counts on revival from Covid.

initiated

• Rationalisation may lead to some impact on per patient revenue, after mainly subsiding of Covid.

Preventive care business is on the growth trajectory after witnessing a significant de-growth due to pandemic

Revenue by Test Type (Aarogyam vs Others) – INR Cr, %

66.2%

• Growth in Aarogyam in Q2 is mainly from B2C channel driven by D2C and Camps.

Others

Aarogyam

43.3%

18.0%

Q1'20

Q2'20

13 Q1'21

108

Q2'21

113

123

105

236

148

Q1'22

Q2'22

H1'20

H1'21

H1'22

AA%

45.7% 46.9%

44.5% 45.3%

43.1% 40.4%

46.3% 45.1% 41.6%

As % of Non Covid

• Contribution

incentive

of Aarogyam within Non Covid has decreased due to reduced spending on promotion and revision in structure the with Covid being major contributor, this would likely to reverse in the next half with various marketing initiatives of field selling, cross marketing, digital marketing, etc.

Income Statement - Pathology Revenue from operations of Rs. 169 Crore, primarily consists of Revenue from Covid of Rs. 69 Crore, mainly from Government contracts. Revenue for half year ended 30 September 2021 of Rs. 328 Crore grew by 62 % YOY, this despite reduced realization per test for Covid RTPCR tests. Non Covid business revived significantly in sequential quarters and reached to pre-Covid level. In particular the per sample and per patient realization improved across all the segments over the last few quarters.

Revenue from operations – primarily comprised of Revenue from diagnostic services Rs. 165 crore and revenue from sale of consumables and digital rapid technology products of about Rs. 4 crore. Revenue from diagnostic services includes revenue from Covid RTPCR of Rs. 69 crore. Diagnostic revenue growth in sequential quarter of 6% was primarily on account of revival of Non Covid business with subsiding Covid 2nd wave and increase in Covid RTPCR business from government.

Gross margin – increased significantly due to one-off government project managed for state government wherein the cost of consumables were spent by state and large volume enabled us to improve margins. 35% of the revenue of the current quarter was contributed by the government project. That apart preventive care business is back in growth after witnessing de-growth due to pandemic

Employee benefit expenses – was 9% of reported revenue, in line with the growth in the topline.

Other expenses - consists of service charges (5% of reported revenue for the quarter), sales incentives (3%), power and fuel (1%), repairs and maintenance (1%). Service charges includes cost of phlebotomist for home collection order, and LME costs.

INR in crore30.09.202130.06.202130.09.2020Seq.YOYRevenue from operations168.7 159.3 148.5 6%14%Cost of materials consumed/ sold(42.7) (53.2) (50.1) -20%-15%Gross margin126.1 106.0 98.4 19%28%Employee benefit expenses(14.6) (13.4) (12.8) 9%14%Other expenses(24.5) (22.0) (24.0) 11%2%EBITDA87.0 70.7 61.7 23%41%Depreciation and amortisation (6.7) (5.8) (5.2) 16%28%Finance cost(0.6) (0.6) (0.2) -3%183%Other income2.0 2.7 5.4 -27%-64%Profit before tax and exceptional items81.6 66.9 61.6 22%33%Tax expense(21.5) (18.5) (15.8) 16%36%Profit after tax60.1 48.4 45.8 24%31%Other comprehensive income(0.0) (0.2) - -75%100%Total comprehensive income60.1 48.2 45.8 25%31%Revenue growthn/a 6% 14% Gross margin %75% 67% 66% EBITDA%52% 44% 42% PAT%36% 30% 31% Revenue - source

Diagnostic services (in crore)

Q-Sep20

Q-Jun21 Q-Sep21

145.01

152.84

164.94

98%

96%

98%

COVID

Sep20

Jun21

Sep21

47.70

45.40

67.52

33%

30%

41%

COVID antibodies

Sep20

Jun21

Sep21

6.02

4.90

1.91

Non COVID

Sep20

Jun21

Sep21

91.29

102.54

95.51

63%

67%

58%

Total Revenue (in crore)

Q-Sep20

Q-Jun21 Q-Sep21

148.54

159.26

168.75

B2B

B2G

B2C

Sep20

Jun21

Sep21

Sep20

Jun21

Sep21

Sep20

Jun21

Sep21

86.96

103.42

70.87

25.10

26.14

67.22

32.95

23.27

26.85

60%

68%

44%

17%

40%

23%

15%

16%

 Total reported revenue mainly consists of revenue from diagnostic services (98%). 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. 2.19 crore.

 Contribution of B2G (Government) in total reported revenue of 40%, increased significantly in

the current quarter with Covid RTPCR testing for NHM, MCGM, Goa.

 B2C revenue reviving post 2nd wave.  Contribution of Covid in total reported revenue of 33% increased due to government projects.

Average realization per test though declined compared to previous quarter.

 COVID antibody contributed during the quarter to the extent of 1 % of total reported revenue.  Revival of Non Covid business specially after subsiding of second wave is seen in both B2B and

B2C segment and after key initiatives post change of control in business.

Sale of goods (in crore)

Q-Sep20

Q-Jun21 Q-Sep21

3.53

6.42

3.81

Sale of consumables

Q-Sep20

Q-Jun21 Q-Sep21

3.24

3.62

1.62

Digital Rapid Technologies

Q-Sep20

Q-Jun21 Q-Sep21

0.29

2.80

2.19

Income Statement - Radiology Radiology business accounted for 4% of reported consolidated revenue of Thyrocare Group in current quarter. Significant revival in PETCT revenue in second quarter is evidenced after subsiding of the 2nd wave. Patient footfall increased across the centres in the second quarter.

Revenue from operations – Revenue from imaging services accounted for 4% of reported consolidated revenue of Thyrocare Group in current quarter. During the quarter, Nueclear operated 9 PET-CT scanners across 8 imaging centres.

Revenue comprised of revenue from sale of FDG of Rs. 0.58 crore in current quarter. Patient footfall increased across the centres and the newly opened centres attained near break even in the first 90 days of operation in Mumbai. Unviable PETCT centre at Aurangabad is transferred as is where is during the quarter.

EBITDA margin – of 22% is revived to near pre-covid period, due to increase in the number of scans and higher per scan realization at matured centes.

Nueclear sold some of its properties acquired with the intention of setting up PETCT, to settle the loans and other liabilities.

Income StatementVariance (%)INR in crore30.09.202130.06.202130.09.2020Seq.YOYRevenue from operations7.5 5.4 4.7 39%59%Cost of materials consumed/ sold(1.2) (1.0) (0.7) 20%69%Gross margin6.3 4.4 4.0 43%57%Employee benefit expenses(0.4) (0.5) (0.4) -20%17%Other expenses(4.2) (3.3) (3.9) 30%10%EBITDA1.6 0.6 (0.2) 160%-920%Depreciation and amortisation (1.5) (1.6) (2.5) -4%-39%Finance cost(0.1) (0.2) (0.4) -67%-84%Other income13.5 8.2 0.1 64%9521%Profit before tax and exceptional items13.5 7.1 (2.9) 91%-560%Tax expense3.6 0.6 - 500%100%Profit after tax17.1 7.7 (2.9) 123%-682%Other comprehensive income(0.0) - - 100%100%Total comprehensive income17.1 7.7 (2.9) 123%-682%Revenue growthn/a 39% 59% Gross margin %84% 81% 85% EBITDA%22% 12% (4%) PAT%229% 142% (62%) NueclearSignificant revival is evidenced after subsiding of the 2nd wave. Patient footfall increased across the centres in the second quarter.

Revenue Radiology by sales channel (Owned/ Partnered) – INR Cr, %

Partnered

Owned

4.18

3.12

-27 %

7.30

- 46%

67.5%

4.30

4.41

0.04 …

Owned

51 %

59 %

Partn’d

49%

41 %

2 %

98 %

2.99

1.11

27 %

73 %

3.69 1.12

5.22

1.62

4.72

8.91

8.71

1.15

2.74

23 %

24 %

54 %

20 %

24 %

77 %

76 %

46 %

80 %

76 %

Thank You

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