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Thyrocare Technologies Ltd (BOM:539871) Q4 2025 Earnings Call Highlights: Robust Revenue Growth ...

In This Article:

  • Revenue Growth: 20% year-on-year increase, with Q4 revenue growth at 21% year-on-year.

  • Franchise Revenue Growth: 18% year-on-year increase, with Q4 growth at 22% year-on-year.

  • Partnership Business Growth: 27% year-on-year increase, with Q4 growth at 24% year-on-year.

  • Pathology Revenue Growth: 21% year-on-year increase, with Q4 growth at 23% year-on-year.

  • Radiology Revenue Growth: 14% year-on-year increase, with Q4 growth at 17% year-on-year.

  • Gross Margin: Q4 gross margin at 74%, with full-year gross margin at 72%.

  • Normalized EBITDA Margin: Q4 margin at 35%, with full-year margin at 31%.

  • Normalized EBITDA: INR 210 crore for FY25, a 37% year-on-year increase.

  • Net Profit (PAT): INR 101 crore for FY25, a 45% year-on-year increase.

  • Dividend: Final dividend of INR 21 per equity share recommended.

  • Test Volume: 167.9 million tests processed, a 14% year-on-year increase.

  • Patient Volume: 16.7 million patients served, an 11% year-on-year increase.

  • Franchise Network: Over 11,000 active franchisees.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Thyrocare Technologies Ltd (BOM:539871) achieved a 20% year-on-year revenue growth, driven primarily by its pathology business.

  • The company has expanded its franchise network to over 11,000 active franchisees, contributing to a 14% increase in test volumes.

  • Thyrocare Technologies Ltd (BOM:539871) is India's first and only 100% NABL accredited national laboratory chain, reflecting its commitment to quality.

  • The company has successfully integrated acquisitions such as Polo Labs and Vimta Labs, enhancing its presence in North and South India.

  • Thyrocare Technologies Ltd (BOM:539871) has launched new specialized tests and expanded its test menu, contributing to higher revenue realization.

Negative Points

  • The company's effective tax rate is expected to be around 28% to 29%, which could impact net profitability.

  • There is a potential risk of margin pressure due to competitive pricing strategies from organized and unorganized players.

  • The receivables have increased significantly, partly due to extended credit periods offered to partners.

  • The company's expansion into new geographies, such as Tanzania, is still in its nascent stages and may take time to contribute significantly to revenue.

  • Thyrocare Technologies Ltd (BOM:539871) faces challenges in maintaining high EBITDA margins amidst ongoing investments in specialized tests and new labs.

Q & A Highlights

Q: Why did Thyrocare pay an excess tax of INR11 crore this quarter, resulting in a 54% tax rate? A: Alok Jagnani, CFO, explained that this was not an excess tax but a deferred tax provision related to past investments in NHL. The provision was reversed due to NHL's improved performance, leading to a tax reversal of INR11.2 crore.