Thyrocare Technologies Limited has informed the Exchange about Investor Presentation
Thyrocare Technologies Limited Quarterly Presentation – Dec’ 21
API + Thyrocare stronger together – an 8 point agenda
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Serve Pharmeasy Online customers of 2.1 million transacting users1
Partner with Retailio network of 87,194 pharmacies2 and MARG network of more than 200,000 pharmacies and wholesalers3 to expand order points
Support Aknamed to integrate diagnostics in its offering to 1000+ hospitals
Ensure the expansion of Pharmeasy & DocOn offline collection points
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Continue to improve our value proposition to our franchisee network
Focused brand building on our Health packages i.e. Aarogyam
Expand Lab network selectively to address TAT challenges, focused franchise expansion
Leverage Pharmeasy technology expertise to improve our customer experience and phlebotomist productivity
1 For three months ended as of June 30, 2021 2 For the month of June 2021 3 As of June 30,2021
Source : API DRHP – Nov 8, 2021
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Several elements already in pilot / execution phase
Cross-sell
Collection centers
Hospitals
Pharmacies
Integration of Thyrocare on Pharmeasy App completed
150+ Pharmeasy collection points initiated (14 cities migrated to TTL)
2 Cities where Aknamed pilot on-going
100 Retailio retailers on- boarded in 5 cities as a pilot
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Several elements already in pilot / execution phase
Addressing churn
New Partners
Ease of doing business
TAT improvement, Quality initiatives
Test pricing optimized in Dec, 588 churned franchises activated
49 new Third Party providers integrated into platform
5 initiatives launched for the channel
6+ RPLs initiated to improve TAT in select regions, NABL certification initiated for all labs
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Key Highlights - Pathology
Revenue Rs. 110 Crore
QoQ 35% ↓ YoY 17% ↓
EBITDA Rs. 36 Crore
EBITDA Margin 32%
PAT Rs. 22 Crore
PAT Margin 20%
Covid RTPCR
420024
Non- Covid Samples 3618589
Patients Served 3003755
Total Tests 24215781
Revenue from operations of Rs. 110 Crore, significantly impacted due to erosion of Revenue from government business in the earlier period, festivities and general fall in demand historically evidenced in Q3.
• Revenue from Government contracts alone dipped by 82% QoQ, due to reduction in spending on Covid and one-
time Govt. projects.
• Revenue for nine months ended 31 December 2021 of Rs. 438 Crore grew by 31 % YOY, due to one time
government projects executed in earlier quarters.
• Non Covid business continued to be at par pre-Covid level. The per sample and per patient realization continued
to improve across all the segments.
Gross margin improved YOY and sustained at sequential quarter. The hiring at the managerial level is ramped up to ensure business growth in all verticals in the coming years.
EBITDA margin staggered mainly on account of impact on the topline due to erosion of government contract business, fixed costs of personnel and other operational costs.
• Other expenses during the quarter includes CSR expenses Rs. 1.92 crore (Q2- Rs. 0.49 Crore) incurred during
the period.
Only 0.40 million Covid RTPCR performed (2.13 million in previous quarter) significantly impacting the performance of current quarter.
4.06 million (Q2 - 6.40 million) samples sourced from 3.00 million (Q2 - 5.29 million) patients were processed during current quarter of which about 3.62 million (Q2 - 4.19 million) samples were for non – Covid related tests/ parameters.
24.22 million (Q2 - 28.28 million) tests were processed in the current quarter that includes standalone tests and tests included in the preventive care Aarogyam profiles.
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In Q3FY22, government business declined, base NOVID business impacted by historical trends observed due to festivities
Thyrocare revenue by sales channel – INR Cr, %
B2G
COVID
NOVID B2C
NOVID B2B
94
1 20
73
101
92
1 24
76
3
22
67
Excl COVID & B2G
145
127
25
42
20
15 25
25
57
61
(4%)
38%
53 8 17 5 22
2%
Excl COVID & B2G
(18%)
153
26
45
17
64
171
67
8 24
71
107
12 6 24
64
50%
49
85
51
106
59
66
1 5
66
216
199
140
Q 1 ' 2 0 Q 2 ' 2 0 Q 3 ' 2 0
Q 1 ' 2 1 Q 2 ' 2 1 Q 3 ' 2 1
Q 1 ' 2 2 Q 2 ' 2 2 Q 3 ' 2 2
Y T D ' 2 0 Y T D ' 2 1 Y T D ' 2 2
B2B
78%
75%
73%
60%
60%
63%
67%
45%
63%
75%
61%
57%
B2C
21%
23%
24%
24%
23%
24%
16%
16%
25%
23%
24%
18%
•
•
•
Topline subdued in current quarter after one-time government contract business in last quarter. Pathology revenue crossed INR 438 cr. YTD.
Contribution of B2G business and Covid business in the overall business led to growth in revenue in the past, that is not sustainable and therefore company is now focusing on the core business streams.
In Dec 21, the company corrected price and launched several initiatives to address churn in the channel
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Patient footfall reduced across all channels due to price increases in Q1, which have been corrected in Nov-Dec 2021
Patient count by sales channel (B2B,B2C and B2G) – Lacs, %
B2G
COVID
NOVID B2C
NOVID B2B
40 2.4
40 2.9
37
37
35
2.6
31
Excl COVID & B2G
38
2
37
2
Excl COVID & B2G
(17%)
(16%)
53
21
2
43
6
1
27
27
24
27
30 2
22
(13%)
3%
14 1
13
•
•
45%
126
31
5
(25%)
114
8
105
89 6
5
74
67
Q 1 ' 2 0 Q 2 ' 2 0 Q 3 ' 2 0
Q 1 ' 2 1 Q 2 ' 2 1 Q 3 ' 2 1
Q 1 ' 2 2 Q 2 ' 2 2 Q 3 ' 2 2
Y T ' 2 0 Y T ' 2 1 Y T ' 2 2
B2B
93% 91%
89%
90% 84%
85%
80%
56%
78%
91% 86% 70%
B2C
6%
7%
7%
5%
9%
8%
5%
5%
9%
7%
8%
6%
In Q1 – the company had significantly increased prices to the channel which has led to a substantial decline in patient volumes vs. historical
In order to address this, and address channel partner churn, the company has now launched several initiatives in Nov-Dec timeline to ensure volumes return
•
•
•
•
Price correction in key tests
Aligning channel margins across the various channels
Rewards and recognition programs
Ease of doing business initiatives
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Degrowth in Patients arrested, starting to see a turnaround in B2B post price corrections in Nov-Dec, significant jump in B2C volumes in Dec
NOVID Patient count – ‘000s
913
872
914
846
988
638
Price correction of key tests
753
703
777
56
28
41
53
66
77
67
67
86
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
B2C
B2B
•
•
•
Between Apr-21 and Sep- 21 prices on key tests were increased by 49%
Prices of key tests were corrected in Nov –Dec to arrest the de-growth in patient count
Prices are now back to levels of Jan-21 and early signs of turn-around in patient count is visible in Dec-21
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Preventive care business continued to be in line with pre-covid period
Revenue by Test Type (Aarogyam vs Others) – INR Cr, %
(2%)
Others
Aarogyam
10%
40 13
54
51
49
43
47
43
(9%)
154
300
224
79
105
112
124
63
40
48
40
47
43
133
101
130
Q1'20 Q2'20 Q3'20
Q1'21 Q2'21 Q3'21
Q1'22 Q2'22 Q3'22
YT'20
YT'21
YT'22
AA%
46% 47%
47%
45% 50%
53%
48%
47%
48%
47% 51%
47%
As % of total non covid
•
•
Contribution of Aarogyam within Non Covid has decreased due to reduced spending on promotion and revision in the incentive structure, which has been corrected in this quarter
Cross selling initiatives on the parent platform are initiated to ensure the preventive care business sustains and grows in the long run
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Income Statement - Pathology
Revenue from operations of Rs. 110 Crore, severely impacted due to erosion of covid business and festivities (as historically observed). Revenue for nine month ended 31 December 2021 of Rs. 438 Crore grew by 31 % YOY. Non Covid business sustained at pre-Covid level. Per sample and per patient realization showed improving trends as in previous few quarters. Income Statement
INR in crore
Revenue from Operations
Cost of Materials Consumed/Sold
Gross Margin
Employee Benefit Expenses
Other Expenses
EBITDA
Depreciation and Amortization
Finance Cost
Other Income
Profit before Tax and Exceptional Items
Tax Expense
Profit after Tax
Other Comprehensive Income
Total Comprehensive Income
Revenue Growth
Gross Margin %
EBITDA %
PAT %
Thyrocare
Variance (%)
31.12.2021
30.09.2021
31.12.2020
Seq.
Y-o-Y
110.2
(29.0)
81.2
(14.1)
(31.1)
36.0
(7.4)
(0.6)
1.1
29.1
(6.5)
22.6
-
22.6
N/A
74%
33%
21%
168.7
(42.4)'
126.3
(14.6)
(24.5)
87.2
(6.7)
(0.6)
2.0
81.9
(21.3)
60.6
(0.1)
60.5
(35%)
75%
52%
36%
-35%
-32%
-36%
-3%
27%
-59%
10%
-2%
-44%
-64%
-69%
-63%
-17%
-30%
·10%
-16%
26%
-27%
32%
150%
-63%
-37%
-45%
-34%
-100%
0%
-63%
-34%
132.2
(41.7)
90.5
(16.8)
(24.8)
48.9
(5.6)
(0.2)
3.0
46.0
(11. 7)
34.2
-
34.2
(17%)
68%
37%
26%
Revenue from operations – primarily comprised of Revenue from diagnostic services Rs. 109 crore and revenue from sale of consumables and digital rapid technology products of about Rs. 1 crore.
Diagnostic revenue de-growth in sequential quarter is about 35%, primarily due to discontinuance of government contracts for COVID test
Gross margin – continued to be at 70%+ mainly on account of improvement in per sample/ patient realization.
Employee benefit expenses at absolute level have not increased. Resources are hired at business development and marketing level to ensure future growth is achieved.
Other expenses - consists of service charges, sales incentives, power and fuel, repairs and maintenance. Service charges includes cost of phlebotomist for home collection order, and LME costs. Apart this also includes mandatory spending of CSR expenses incurred during the year and provision for bad debts created on the basis of expected credit loss matrix.
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Revenue - source
Total Revenue (in crore)
Q-Dec20
Q-Sep21
Q-Dec21
132.17
168.74
110.20
Diagnostic Services (in crore)
Sale of Goods (in crore)
Q-Dec20
Q-Sep21
Q-Dec21
Q-Dec20
Q-Sep21
Q-Dec21
131.90
99.8%
164.94
98%
106.00
96%
0.27
0.2%
3.80
2%
4.20
4%
NOVID B2B
Sep21
71.29
43%
NOVID B2C
Sep21
24.48
15%
Dec20
60.91
46%
Dec20
25.47
19%
Dec21
63.88
60%
Dec21
24.18
23%
Dec20
25.30
19%
Dec20
15.45
12%
COVID
Sep21
7.82
5%
B2G
Sep21
67.22
41%
Dec21
6.20
6%
Dec21
12.25
12%
Sale of Consumables
Dec20
Sep21
Dec21
0.27
1.62
0.90
Digital Rapid Technologies
Dec20
Sep21
Dec21
-
2.18
3.30
•
•
•
•
Total reported revenue mainly consists of revenue from diagnostic services (96%). 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. 0.90 crore.
Contribution of B2G (Government) in total reported revenue of 11% (previous quarter 40%).
B2C revenue sustained despite of festivities.
Contribution of COVID in total reported revenue deepen to 13%.
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Income Statement - Radiology
Radiology business accounted for 6% of reported consolidated revenue of Thyrocare Group in current quarter. Despite of festivities, the footfall at PETCT centres continued to improve in last 2-3 quarters.
Income Statement
INR in crore
Revenue from Operations
Cost of Materials Consumed/Sold
Gross Margin
Employee Benefit Expenses
Other Expenses
EBITDA
Depreciation and Amortization
Finance Cost
Other Income
Profit before Tax and Exceptional Items
Tax Expense
Profit after Tax
Other Comprehensive Income
Total Comprehensive Income
Revenue Growth
Gross Margin %
EBITDA %
PAT %
Nuclear
Variance (%)
31.12.2021
30.09.2021
31.12.2020
Seq.
Y-o-Y
7.3
(1.0)
6.3
(0.6)
(4.9)
0.8
(1.5)
-
0.5
(0.2)
0.7
(0.9)
-
(0.9)
N/A
86%
11%
(14%)
7.5
(1.2)
6.3
(0.4)
(4.2)
1.7
(1.5)
(0.1)
13.5
13.6
3.6
17.2
-
17.2
(3%)
84%
23%
229%
-3%
-17%
0%
50%
17%
-53%
0%
18%
0%
21%
50%
20%
14%
-35%
-100%
400%
-96%
-101%
-63%
-89%
-119%
100%
-105%
-50%
0%
0%
-105%
-50%
6.2
(1.0)
5.2
(0.4)
(4.1)
0.7
(2.3)
(0.3)
0.1
(1.8)
-
(1.8)
-
(1.8)
18%
84%
11%
(29%)
Revenue from operations – Revenue from operations – Revenue from imaging services accounted for 6% of reported consolidated revenue of Thyrocare Group in current quarter. During the quarter, Nueclear operated 9 PET-CT scanners across 8 imaging centres.
The subsidiary has settled disputes at Gujarat and are in the process of commencing operations at Surat and Vadodra. Revenue comprised of revenue from sale of FDG of Rs. 0.85 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.
Nueclear sold some of its properties acquired with the intention of setting up PETCT, to settle the loans and other liabilities.
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Patient footfall increased across the centers in the second quarter
Revenue Radiology by sales channel (Owned/ Partnered) – INR Cr, % Revenue Radiology by sales channel (Owned/ Partnered) – INR Cr, %
Partnered
Owned
(21%)
4.18
3.12
3.30
4.30
4.41
3.88
1.73
0.04
2.99
1.11
2.74
2.92
3.69
1.12
-27%
10.60
11.89
7.46
11%
2.98
5.22
1.62
3.31
12.59
4.07
6.05
Q 1 ' 2 0
Q 2 ' 2 0
Q 3 ' 2 0
Q 1 ' 2 1
Q 2 ' 2 1
Q 3 ' 2 1
Q 1 ' 2 2
Q 2 ' 2 2
Q 3 ' 2 2
YT ' 2 0
YT ' 2 1
YT ' 2 2
Owned
51 %
59 %
54 %
2 %
27 %
52%
23%
24%
53%
54%
35%
34%
Partner
49%
41%
46%
98%
73%
48%
77%
76%
47%
46%
65%
66%
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Thank You
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