Krsnaa Diagnostics Limited · NSE:KRSNAA
Krsnaa Diagnostics — H1 FY2024 Earnings Presentation
40 slides from Krsnaa Diagnostics's earnings presentation, November 2023
Slide 1: Q2 and H1 FY2024 Investors Presentation
Q2 and H1 FY2024 Investors Presentation One of INDIA’S LARGEST Differentiated Diagnostic Service Provider November 2023
Slide 2: Q2 and H1 FY2024 Performance
@® Q2 and H1 FY2024 Performance
Slide 3: Krsnaa Diagnostics H1 FY24 Financial At a Glance
Krsnaa Diagnostics Krsnaa Financial- Diagnostics H1 FY24At aFinancial- Glance Accelerated Growth Rs. 295 cr 25% 18% 25% H1 FY24 Revenue Normalized Normalized Revenue EBITDA* PAT** YoY Growth YoY Growth YoY Growth Rs. 74 cr | 25%* H1 FY24 EBITDA and EBITDA A Rs. 236 cr 100% Margin (Stable) Cash and C
Slide 4: Krsnaa Diagnostics Q2 FY24 Financial At a Glance
Krsnaa Diagnostics Krsnaa Financial- Diagnostics Q2 FY24At aFinancial- Glance At a Glance Rs. 155 cr Q2 FY24 Revenue 26% 27% Revenue Normalized EBITDA* YoY Growth YoY Growth Rs. 39 cr | 25%* Q2 FY24 EBITDA* and EBITDA Margin* 17% Rs. 3.2 Normalized PAT** Q2 FY24 Earning Per YoY Growth Share Rs. 26 c
Slide 5: Krsnaa Diagnostics Operations At a Glance
Krsnaa Diagnostics Krsnaa Operations- Diagnostics H1 FY24AtOperations- a Glance At a Glance 1,377 134 Tele-reporting Centres CT/MRI Centres 112 3,052 Total Centres and Labs Pathology Processing Lab 1,429 125+ District Locations Pathology Collection Centres 240+ 17+ Doctors States & Union Territory 1
Slide 6: Core Business Continues to Grow (H1 FY24)
Core CoreBusiness BusinessContinues Continuesto to Grow Grow Delivering Exceptional H1 FY24 Results: 25% YoY Total Revenue Growth, 25% EBITDA Strengthening, Resilient Margins, and Promising Future Advancements Rs. mn Total Revenue Core Business Revenue 25% 25% YoY YoY 2,950 2,950 2,358 2,352 H1 FY23
Slide 7: Core Business Continues to Grow (Q2 FY24)
Core CoreBusiness BusinessContinues Continuesto to Grow Grow Delivering Excellence: Achieving 26% YoY Revenue Growth and 27% EBITDA Strengthening, with a Promising Future through New Center Initiatives Rs. mn Total Revenue Core Business Revenue 26% YoY 27% YoY 1,555 1,555 1,396 1,396 1,229 1,226 Q2
Slide 8: Well Capitalized Balance Sheet to Fund the Growth
Core WellBusiness Capitalized Continues BalancetoSheet Growto Fund the Growth (Rs. mn) FY19 FY20 FY21 FY22 FY23 H1FY23 H1FY24 Long Term Debt 937 1,400 1,680 331 243 300 380 Short Term Debt 772 1,112 638 79 82 326 712 Total Debt 1,709 2,512 2,318 410 325 626 1,092 Cash & Cash Equivalents 1,281 1,379
Slide 9: Management Perspectives
Management ManagementPerspectives Perspectives Commenting on the business, Ms. Pallavi Bhatevara, Managing Director, Commenting on the results, Mr. Yash Mutha, Whole Time Director, said: said: “Throughout the first half of FY2024, Krsnaa achieved a noteworthy 25% year- “Krsnaa diagnostics limited ha
Slide 10: Business Overview
@® Business Overview
Slide 11: Indian Government Initiatives - Healthcare
Indian Government Diagnostic Industry Initiatives - Healthcare Budgetary Allocation for Healthcare over the years National Health Mission – Estimate V/s Centre Release Rs. bn 1000 3.00% 900 2.50% 800 2.50% 700 2.40% 2.40% 2.30% 2.00% 2.20% 600 2.00% 500 1.80% 1.50% 400 1.00% 300 200 0.50% 100 530 54
Slide 12: Indian Diagnostic Industry – Trend & Projections
Indian Diagnostic Diagnostic Industry Industry Indian Diagnostic Industry – Trend & Projections Indian Diagnostic Industry: Estimated Breakup • The industry’s profitability is defined based on high volume of testing and optimal Rs. bn utilization of labs. Also, high capex requirements for radiology
Slide 13: Indian Pathology and Radiology Market
Indian Diagnostic Diagnostic Industry Industry Indian Pathology Market Indian Radiology Market Rs. bn Rs. bn 6% decline 5.6% due to decline covid due to covid 313 466 437 640-710 224 357 337 510-540 FY18 FY22 FY23 FY28E FY18 FY22 FY23 FY28E Indian Pathology Market Indian Radiology Market • The India
Slide 14: Preventive & Wellness Share and Non-Metro Under Penetration
Indian Diagnostic Diagnostic Industry Industry Share of Preventive & Wellness Segment In Pathology Market Under Penetration of Non-Metro Region FY18 FY28E 8% 24% 25% 75% 76% 92% Rest of Pathology Wellness/Preventive Urban Region Rural Region Indian Diagnostic Industry: Share of Preventive & Wellness
Slide 15: High Quality Diagnostic Services at Disruptive Prices
High Quality High Diagnostic Quality Services Diagnostic at Disruptive Services Prices Prices at Competitive % from min Segment Test Peer 1 Peer 2 Peer 3 Krsnaa price RDL CT Brain 4,500 4,500 3,500 973 (72)% RDL MRI Brain 8,000 8,250 7,000 2,209 (68)% Krsnaa Diagnostics offers high quality PTH CBC 2
Slide 16: Best-in-class infrastructure and services at disruptive rates
Best-in-class infrastructure Best-in-class and services infrastructure at disruptive and high brand rates – high recall brandtorecall leading leading to increased increased foot-falls foot-falls High quality infrastructure and services at competitive prices creates market awareness and drives direct
Slide 17: State of Art Pathology Facility in Mumbai
Best-in-class infrastructure and services at disruptive rates – high brand recall leading State of Art Pathology Facility in Mumbai to increased foot-falls Krsnaa's First Private Pathology Lab in Mumbai with Adequate Capacity to Serve Mumbai Population 05 Facility would act as Central lab for entire
Slide 18: Modern Facility – Coming Soon
Best-in-class infrastructure and services at disruptive rates – high brand recall leading Modern Facility – Coming Soon… to increased foot-falls FIRST MACHINE IN INDIA • SIGNA Architect 3.0T, a state-of-the-art imaging solution that combines the advancements in MR technology with GE Healthcare’s int
Slide 19: Track Record of Successful Fast-Pace Expansion
Track Record of Successful Fast-Pace Expansion 2023 2013-18 2021-22 Expansion Won First Centres – 2,800+ Successful Listing States and UT– Public 2011 2019-20 on the Stock 17 Private Exchanges First time in India Partnership contract of 12 Teleradiology Expansion HUB being CT scan in Centres –2,000+
Slide 20: India's 1st NABH Accredited Teleradiology HUB
India’s India’s1st 1st NABH AccreditedTeleradiology NABH Accredited Teleradiology HUB HUB Krsnaa Diagnostics Tele radiology facility in Pune is fully capable to process large volumes Scalable business model and enables wider penetration into tier II Patient Entry and tier III cities Report deliver
Slide 21: Only Company with Pan India Presence in Both Radiology and Pathology
Only OnlyCompany with Company with Pan Pan India India Presence Presence inRadiology in Both Both Radiology and Pathology and Pathology Well Diversified Regional Revenue Mix 5% 28% 44% FY2023 23% West South North East High Headroom to Grow Highest penetration across districts with presence in 125+
Slide 22: Krsnaa Competitive Advantages
Krsnaa Competitive Krsnaa Advantages Competitive Advantages Sustainable business model backed by underlying competitive advantages and well positioned to drive growth Revenue Visibility Long-term of contracts (between 5-10 years) with inbuilt price escalation mechanism ensures higher and consistent
Slide 23: PPP Project Implementation on Track
PPP Project Project Implementation under on Track Implementation Radiology Centers Under Implementation State Total Centres Operational Under Implementation Uttar Pradesh 8 4 4 Delhi 1 - 1 DMC 1 - 1 Mira Bhayandhar MC 1 - 1 Rajasthan 1 - 1 Maharashtra 39 - 39 Total Radiology 51 4 47 Pathology Center
Slide 24: Tapping PPP Opportunity – Radiology Tenders Won
Tapping PPP Opportunity – Radiology Tenders Won and FY2023 – Radiology Tenders Won and Assets to be deployed Assets to be deployed Assets to be Deployed 4 47 2 States and UT CT Scan MRI Scan Maharashtra Uttar Pradesh Dhule Radiology Contract Radiology Contract Radiology Contract • Scope- 39 CT Scan
Slide 25: Tapping PPP Opportunity – Pathology Tenders Won
Tapping PPP Opportunity – Pathology Tenders Won and FY2023 – Radiology Tenders Won and Assets to be deployed Assets to be deployed Assets to be Deployed 3 162 2,689 States Labs Collection centers Dhule Assam BMC Pathology Contract Pathology Contract Pathology Contract • Scope-600 collection • Scope-
Slide 26: Centres Maturity Profile
Centres Maturity Centres Profile Maturity Profile Krsnaa Younger Portfolio Continues to Mature with Promising Future 59% 32% 14% 20% Gross Block* ROCE 27% -7% Gross Block* ROCE Gross Block* ROCE Matured Semi-Matured Newly Launched Expand B2C share of Business Increase awareness and visibility th
Slide 27: B2C Pathology Strategy for FY2024
B2C Pathology B2C Strategy Pathology for FY2024 Strategy Expanding test menus by adding more specialized tests at Core strategy is to set up and operationalize Home Collection competitive prices Hub and Preventive Health check up promotion in Two Phases Molecular Diagnostics Flow Cytometry Histopath
Slide 28: Retail Market Expansion Strategy Leveraging Digital Initiatives
Retail Market Retail Expansion Market Strategy Expansion Leveraging Strategy DigitalDigital Leveraging Initiatives Initiatives R&A – Customer Review Social Media Customer WhatsApp Call Centre Customer Business Hub Engagement Tool Strategy Dedicated Website Mobile Application 28
Slide 29: Enhancing Visibility and Awareness
Enhancing Visibility Enhancing and and Visibility Awareness Awareness IN-SHOP BRANDING PROMOTIONAL BRANDING HEALTH CHECKUP CAMP COCO 29
Slide 30: Enhancing Visibility and Awareness – Awards and Accolades
Enhancing Visibility Awards and and Awareness Accolades When you TEST, trust only the Best! 30
Slide 31: Experienced Leadership Team
Experienced Leadership Experienced Team Leadership Team Rajendra Mutha Pallavi Bhatevara, Yash Mutha Pawan Daga Executive Chairman Managing Director Whole Time Director Chief Financial Officer • 12+ years of experience in the • 10 years of experience in the • 14+ years of experience in the • 12+ yea
Slide 32: Board of Directors – Diversified Experience and Background
Board Boardof of Directors – Diversified Directors – Diversified Experience and Experience Background and Background Chetan Desai Chhaya Palrecha Rajiv Ranjan Verma Independent Director Independent Director Independent Director • Practicing Chartered Accountant with a wide- • Chartered Accountant wi
Slide 33: Way Forward
@® Way Forward
Slide 34: Growth Strategy
Growth Strategy Growth Strategy We aim to sustain the upward trajectory of our Revenue and PAT CAGR by utilizing our existing facilities and seizing opportunities in untapped markets Tap the growing and underpenetrated diagnostic market by participating in new PPP tender Focus on timely and successf
Slide 35: Krsnaa Diagnostics Edge
Krsnaa Diagnostics Krsnaa Edge Diagnostics Edge One of the Fastest Extensive Strong Brand Scalable and Competitive Stakeholder Value Growing Geographic Equity Agile Business Pricing Creation Diagnostics Footprint Model Service Provider in the country ₹ Total Centre count Centres across India Well po
Slide 36: Financials
Financials
Slide 37: Quarterly Financial Performance
Quarterly QuarterlyFinancial Performance Financial Performance (Rs. mn) Q2FY24 Q2FY23 Y-o-Y Growth Q1FY24 Q-o-Q Growth H1FY24 H1FY23 Y-o-Y Growth Core Business 1,555 1,226 27% 1,396 11% 2,950 2,352 25% Covid-19 Business - 3 - - 6 Revenue from Operations 1,555 1,229 26% 1,396 11% 2,950 2,358 25% Othe
Slide 38: Quarterly Balance Sheet
Quarterly BalanceFinancial Sheet Performance Assets (Rs. mn) H1FY23 H1FY24 Equity and Liabilities (Rs. mn) H1FY23 H1FY24 Non-Current Assets 5,930.68 6,454.49 Total Equity 7,060.71 7,552.50 Property, plant and equipment 3,904.20 5,562.30 Equity share capital 156.99 156.99 Other equity 6,903.73 7,395.
Slide 39: Factsheet – Key Valuation Metrics
Factsheet Factsheet Key Valuation Metrics 3-October-23 35% 66% NSE Ticker KRSNAA Revenue CAGR PAT CAGR BSE Ticker 543328 5Y (FY18-23) 5Y (FY18-23) Share Price (in Rs) 720 Number. of Shares ( in Cr) 3.14 36% 33% Equity Value (Rs. Cr) 2,261 Radiology Revenue Pathology Revenue Gross Borrowings (Rs. Cr)
Slide 40: Contact Information
Contact ContactInformation Information This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Krsnaa Diagnostics’ future business developments