Vijaya Diagnostic Centre Ltd. · NSE:VIJAYA
Vijaya Diagnostic Centre — Q4 FY2023 Earnings Presentation
44 slides from Vijaya Diagnostic Centre's earnings presentation, May 29, 2023
Slide 1: Cover letter to stock exchanges
May 29, 2023 To, To, Listing Department The Corporate Relations Department National Stock Exchange Of India Limited, BSE Limited, Exchange Plaza, Phiroz Jeejeebhoy Towers, Bandra Kurla Complex, 25th floor, Dalal Street, Bandra (East), Mumbai- 400 051 Mumbai - 400 001 NSE Symbol. VIJAYA BSE Scrip Cod
Slide 2: Q4 & FY23 Earnings Presentation
Vijaya Diagnostic Centre Limited Q4 & FY23 Earnings Presentation May 29, 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vijaya Diagnostic Centre Limited (the ‘Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Q4 & FY23 Financial Performance
Q4 & FY23 Financial Performance
Slide 5: Notes to Financial Results
Notes to Financial Results Change in Accounting Estimate: “ With effect from 01 January 2023, the Company has changed its method of depreciation on all Property, Plant and Equipment from Written Down Value (“WDV") method to Straight Line Method (“SLM"), based upon the technical assessment of expecte
Slide 6: Q4 FY23 – Performance Snapshot
Q4 FY23 – Performance Snapshot Operational & Financial Highlights – Q4 FY23 2.71 Mn Tests 0.80 Mn INR 1,209.9 Mn INR 1,203.1 Mn +22.4% +24.7% Footfalls Non-COVID Non COVID Non COVID Revenue from operations Revenue test volume Revenue2 growth (YoY) growth (YoY) 121 Centres (opened 5 closed 1) INR 491
Slide 7: Management comment
Management comment Commenting on the Q4FY23 results performance, Ms. Suprita Reddy, CEO at Vijaya Diagnostic Centre Ltd. said: "We are extremely delighted to announce that Q4 witnessed stellar performance, with achievement of the highest ever quarterly Non-COVID revenue growth of 22.4% year-on-year.
Slide 8: Key Financial Highlights – Q4 & FY23
Key Financial Highlights – Q4 & FY23 (INR Mn) Revenue from Operations EBITDA & EBITDA Margin (%) 4,624 4,592 41.2% 39.1% 40.6% 44.1% 39.6% 2,037 1,820 1,162 1,131 1,210 479 443 491 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Shift YoY (%) 4.1% -0.7% 2.6% -10.6% PAT & PAT Marg
Slide 9: Revenue Mix – Q4 & FY23
Revenue Mix – Q4 & FY23 (in %) Radiology vs. Pathology Breakdown Non-COVID & COVID Allied Breakdown Radiology Pathology Non Covid Covid 15% 1% 1% 69% 64% 64% 67% 65% 85% 99% 99% 31% 36% 36% 33% 35% Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Non-COVID YoY (%) 22.4% COVID YoY (%) -96.2%
Slide 10: Q4 & FY23 – Key Developments
Q4 & FY23 – Key Developments Inaugurated a state-of-the-art hub in Tirupati, Andhra Pradesh • Q4FY23 marked the successful inauguration of more than 10,000 Sq. ft advanced and fully equipped facility in Tirupati, Andhra Tirupati Facility Pradesh. • Commencing full-fledged operations in May 2023, thi
Slide 11: Q4 & FY23 – Key Developments
Q4 & FY23 – Key Developments Continued positive momentum witnessed in Non-COVID Test Volumes (# in Million) operational performance On the back of healthy traction seen in Non-COVID business across 2.70 2.57 2.48 all segments, - the Company witnessed year-on-year as well as 2.18 quarter-on-quarter i
Slide 12: Q4 & FY23 - Financial and Operational Discussions (Y-o-Y)
Q4 & FY23 - Financial and Operational Discussions (Y-o-Y) • Revenue from Operations increased by 4.1% YoY to Rs. 1,210 Mn, Non-Covid Revenues grew by 22.4% YoY o The Non-COVID growth was driven by both radiology and pathology segments, highlighting the strength of our integrated model. Financial Per
Slide 13: Key Financial Highlights
Key Financial Highlights Cash flow from Operations / EBITDA (%) Cash & Cash Equivalents (INR Mn) 90.7% 90.7% 89.8% 2,554 2,554 77.4% 2,466 2,425 2,466 74.2% Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Working Capital Days1 • Cash flow from Operations stood at Rs. 1,646 mn. Q4FY2
Slide 14: Key Operational Highlights
Key Operational Highlights Tests Performed (# in Million) Footfalls (# in Million) Tests / Footfalls (# in Million) 3.62 10.05 3.18 3.22 3.37 3.17 9.32 2.55 2.57 2.45 2.49 2.71 0.96 0.77 0.80 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Revenu
Slide 15: Consolidated Profit & Loss Account – Q4 & FY23
Consolidated Profit & Loss Account – Q4 & FY23 (INR Mn) Particulars Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from operations 1,209.9 1,162.0 4.1% 1,131.2 6.9% 4,592.2 4,623.7 -0.7% Cost of materials consumed 155.3 178.8 -13.1% 136.7 13.6% 588.8 715.0 -17.6% Employee benefits expen
Slide 16: Company Overview
VIJAYA fc) DIAGNOSTIC [WISAYA] CENTRE Company Overview
Slide 17: Vijaya at a Glance
Vijaya at a Glance Vijaya Diagnostic Centre Limited is the largest integrated diagnostic chain in South India with 121 state-of-the-art centres spread across 20 cities 40+ 121 Mission Years of Experience Centres Quality Experience in delivering Quality Diagnostic Service State-of-the-art Facilities
Slide 18: Our Journey
Our Journey Awarded one of the Best Healthcare Brands 2022 by The Economic Times Awarded Brand of the year One of the earliest in diagnostic services by The Won the Healthcare Leadership private diagnostic Vijaya Diagnostic Centre Recognized as one of the CEO Magazine and Awards 2022 service provide
Slide 19: At the Forefront of Introducing New Technologies
At the Forefront of Introducing New Technologies Ultrasound & Nuclear Medicine Fourth Generation 1981 Echocardiography 1986 1993 CT Scan 1994 Offer Mammography facility Hawkeye Gamma Automated Microbiology Real Time RT-PCR Assays 2006 2003 Culture 2000 1999 Bone Densitometry Camera with SPECT & Flow
Slide 20: Our Pillars of Strength
Our Pillars of Strength 1 One of the leading players in India’s high growth diagnostics market 2 Integrated diagnostics provider offering one-stop solution 3 High brand recall driving customer stickiness 4 Robust technical capabilities and state-of-the-art technology 5 Experienced Board and strong m
Slide 21: Indian Diagnostics Market expected to Grow at a Healthy Trajectory
Indian Diagnostics Market expected to Grow at a Healthy Trajectory Indian Diagnostics Market Segment-wise breakup of Indian Diagnostic Market (INR Bn) Radiology Pathology 980 980 +13% +13% FY23E CAGR CAGR 275 - 285 43% - 44% 684 684 FY20 +13% - 14% 190 - 195 CAGR 43% 472 472 +14% CAGR South India 41
Slide 22: One of the leading players in India's high growth diagnostics market
One of the leading players in India’s high growth diagnostics market Telangana and Andhra Pradesh Market Size Vijaya’s Core Geographies Telangana and Andhra (INR Bn) Dominant Position in Pradesh (44 - 46% of South Telangana & India) Andhra Pradesh +14% 120 -130 Karimnagar CAGR Mancherial Nizamabad 8
Slide 23: Integrated Diagnostic service provider with extensive network
Integrated Diagnostic service provider with extensive network… National Reference Lab Vijaya Diagnostic Centre Flagship Centre #1 #1 Reference Lab Customers Hubs #28 Samples #16 Customer (Walk-in) Home Collection B2B Hospitals & Labs Sample Flow Patient Flow Spokes #92 Flagship Centre = Lab Sample C
Slide 24: One-Stop Solutions for Pathology & Radiology
…offering One-Stop Solutions for Pathology & Radiology Complete Range of Diagnostic Services under One Roof Comprehensive and high quality integrated diagnostic services through our operational network 23
Slide 25: High brand recall driving customer stickiness
High brand recall driving customer stickiness Customer Centric Approach Quality Diagnostic Services B2C Revenue 95% 94% 93% 92% 90% Higher brand recall FY19 FY20 FY21 FY22 FY23 High share of walk-in customers Operational Metrics (INR) Sticky individual customer 1,431 1,446 1,228 1,214 1,276 “For exc
Slide 26: Robust Technical Capabilities with State-of-the-art IT Infrastructure
Robust Technical Capabilities with State-of-the-art IT Infrastructure 8 Advanced Software to Manage Clinical Data 23 CT Machines PET CT / Gamma machines 23 200+ Fully Integrated Radiology Advance Laboratory MRI Machines Radiologists, Lab Doctors & Information Systems (RIS) and Information Management
Slide 27: Doctors connect program
Doctors connect program Vijaya Diagnostic Centre, in association Vijaya Diagnostic Centre and Vijaya Diagnostic Centre, in association with the North Andhra Orthopaedic Vijaya Diagnostic Centre conducted a Homeopathic Medical Association of with the IMA Mancherial Branch, Association, organized a Co
Slide 28: Experienced Board of Directors
Experienced Board of Directors Dr. S Surendranath Reddy - Executive Chairman Dr. D Nageshwar Reddy - Non-executive, Independent Director ▪ Founder of Vijaya with 40+ years of experience in building Vijaya as South India’s largest integrated diagnostic chain ▪ Chairman of Asian Institute of Gastroent
Slide 29: Strong Management Team
Strong Management Team Dr. S. Surendranath Reddy Mr. Sunil Chandra Kondapally Ms. Suprita Reddy Mr. Narasimha Raju K.A Executive Chairman Executive Director Chief Executive Officer Chief Financial Officer ▪ 40+ years of experience in ▪ With Vijaya since incorporation ▪ With Vijaya since 2003 and ▪ A
Slide 30: Awards & Accolades
Awards & Accolades Most Trusted Brand of the Pride of India Brands Award One of the Best Healthcare Indo Global Award for Company of the Year - Best Healthcare Brands 2022 Year 2023 2022 Brands 2021 Healthcare Excellence Healthcare 2023 2021 2021 2021 2022 2022 Presented by Presented by Presented by
Slide 31: Shareholding Pattern as of 31st Mar 2023
Shareholding Pattern as of 31st Mar 2023 Others FII’s 5.8% Marquee Institutional Investors Wasatch Advisors 25.3% Aberdeen Standard Investments Promoter & Promoter group Nippon Life India 55.0% Axis Mutual Fund 13.9% Fidelity Group Abu Dhabi Investment Authority DSP Healthcare Fund DIIs Goldman Sach
Slide 32: Strategy Going Forward
VIJAYA fc) DIAGNOSTIC [WISAYA] CENTRE Strategy Going Forward
Slide 33: Deepen Footprint in our Core Markets - Telangana & Andhra Pradesh
Deepen Footprint in our Core Markets - Telangana & Andhra Pradesh Leveraging Existing Presence Given under-penetration of diagnostic market, we will continue to focus on Opening additional diagnostic centres through owned model Mancherial Nizamabad Karimnagar Expanding network through setting up spo
Slide 34: Expand in Adjacent Geographies & East India
Expand in Adjacent Geographies & East India Network (FY22) East India Strategy ◼ Expand presence in East India given growing demand ◼ Replicate our successful hub and spokes model in East India ◼ Established a hub in Kolkata and plan is to South India Strategy set up additional diagnostic centres ar
Slide 35: Continued Focus on Providing Customer Centric Services and Offerings
Continued Focus on Providing Customer Centric Services and Offerings Preventive and Wellness Testing to Boost Demand for Diagnostics FY20E Industry Size FY23P CAGR: ~20% 101-108 61-68 Rest of the Wellness & Rest of the Wellness & market Preventive market Preventive 90% 9% - 10% 89% 11% FY20 FY23 Key
Slide 36: Financial & Operational Highlights
Financial & Operational Highlights
Slide 37: Robust Operational Metrics
Robust Operational Metrics Diagnostic Centre (Nos) Footfalls (Mn) Tests Performed (Mn) 121 3.62 3.18 10.05 9.32 95 2.79 2.63 7.91 80 2.38 6.99 7.09 73 61 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Test per Footfall (Nos) Revenue per Test (INR) Revenue per Footfall (IN
Slide 38: Consistent Financial Performance
Consistent Financial Performance (INR Mn) Revenue EBIDTA PAT CAGR:12% CAGR:14% CAGR:17% 4,624 4,592 3,767 2,037 3,388 1,660 1,820 1,097 2,926 1,326 845 846 1,081 625 459 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 EBIDTA Margin (%) PAT Margin (%) 260 bps 270 bps 44.1%
Slide 39: Sustainable Cash Generation & Increasing Return Ratios
Sustainable Cash Generation & Increasing Return Ratios Cash & Cash Equivalents CFO / EBIDTA (%) (INR Mn) 2,466 2,554 90% 2,277 1,729 84% 1,215 80% 78% 77% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 RoCE Pre-Cash (%) RoE (%) 1 22% 23% 23% 23% 43% 38% 33% 16% 30% 25% FY19 FY20 FY21 FY22 FY23 FY
Slide 40: Annexure
VIJAYA fc) DIAGNOSTIC [WISAYA] CENTRE Annexure The Pioneers in Diagnostic Medicare.
Slide 41: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account (INR Mn) Particulars FY23 FY22 FY21 FY20 FY19 Revenue from operations 4,592 4,624 3,767 3,388 2,926 Cost of materials consumed 589 715 571 439 405 Employee benefits expense 785 707 574 624 539 Other expenses 1,398 1,165 962 999 901 EBITDA 1,820 2,037 1,660 1,326 1,
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet (INR Mn) Assets Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 EQUITY AND LIABILITIES Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 NON-CURRENT ASSETS 5,777 4,436 3,022 2,959 2,689 EQUITY 5,466 4,695 3,592 2,741 2,069 Property, plant and equipment 2,940 1,966 1,358 1,398 1,437 Equity share capit
Slide 43: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (INR Mn) Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Cash Flow from Operating Activities Profit before Tax 1,135 1,474 1,121 834 653 Adjustment for Non-Operating Items 683 572 534 492 431 Operating Profit before Working Capital Changes 1,818 2,046 1,655 1,326 1,08
Slide 44: Thank You
THANK YOU Company Investor Relations Advisors Vijaya Diagnostic Centre Limited (VDCL) Citigate Dewe Rogerson (CDR India) Mr. Anoop Poojari / Mr. Siva Rama Raju Mr. Devrishi Singh Head – Strategy & Investor Relations +91 99485 95555 / +91 90597 00749 Tel: +91 98330 90434 / sivaramaraju.v@vijayadiagno
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