In This Article:
-
Revenue: INR597 crores in Q3 FY25, up 10.7% from INR539 crores in Q3 FY24.
-
YTD Revenue: INR1,859 crores, a growth of 10.6% from INR1,681 crores in the same period last year.
-
Revenue per Patient: INR861 in Q3 FY25, up 6.7% from INR807 in Q3 FY24.
-
EBITDA: INR154 crores in Q3 FY25, a growth of 9.6% with a margin of 25.8%.
-
YTD EBITDA: INR527 crores, up 13.3% with a margin of 28%.
-
PBT: INR138 crores in Q3 FY25, a growth of 19.4% from INR116 crores in Q3 FY24.
-
PAT: INR98 crores in Q3 FY25, up 19.3% with a margin of 16.4%.
-
YTD PAT: INR337 crores, with a margin of 18.1%.
-
EPS: INR11.6 in Q3 FY25, up from INR9.8 in Q3 FY24.
-
YTD EPS: INR39.9, up from INR32.9 in the same period last year.
-
Net Cash: INR1,123 crores as of December 31, 2024.
-
Interim Dividend: INR6 per share, total YTD dividend of INR18 per share.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Dr. Lal PathLabs Ltd (BOM:539524) reported a 10.7% growth in revenues for Q3 FY25, reaching INR597 crores compared to INR539 crores in the same quarter last year.
-
The company maintained a strong performance trajectory with a 6.7% increase in revenue per patient, attributed to mix management initiatives.
-
Dr. Lal PathLabs Ltd is expanding its reach with plans to open 15 to 20 new labs in underserved markets, enhancing its presence in Tier 3 and Tier 4 cities.
-
The company's bundled test program, Swasthfit, showed robust growth of 27.2% in Q3 FY25, contributing positively to overall performance.
-
The Board of Directors approved a third interim dividend of INR6 per share, bringing the total dividend for the current year to INR18 per share, reflecting strong financial health.
Negative Points
-
Despite revenue growth, the gross margin for Q3 FY25 was slightly lower compared to the same quarter last year, indicating cost pressures.
-
Employee expenses have been growing in mid-teens, higher than revenue growth, due to investments in new infrastructure and hiring, which may impact profitability.
-
Suburban Diagnostics, a part of Dr. Lal PathLabs Ltd, showed softer revenue growth of 9.2% in Q3 FY25, lagging behind the overall company growth.
-
The effective tax rate remains elevated at around 29% on a consolidated basis due to depreciation on intangibles, affecting net profitability.
-
The company faces challenges in expanding patient volume growth, which stood at 4.4% YTD FY25, below historical pre-COVID levels.
Q & A Highlights
Q: Can you explain the consistent improvement in gross margins despite no price increase and the rise in employee expenses? A: Ved Goel, CFO, clarified that gross margins have not improved compared to the same quarter last year. The increase in employee expenses is due to investments in new infrastructure and hiring in sales and marketing to support future growth. Om Manchanda, Managing Director, added that post-COVID, margins improved due to productivity initiatives, but they are expected to stabilize rather than improve further.