Krsnaa Diagnostics Limited · NSE:KRSNAA
Krsnaa Diagnostics — Q3 FY2024 Earnings Presentation
43 slides from Krsnaa Diagnostics's earnings presentation, Feb 12, 2024
Slide 1: Regulation 30 intimation of investor presentation to exchanges
Date: February 12, 2024 Ref. No.: KDL/SE/CI/06/2023-24 To, To, BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C-1, Block G, 25th Floor, Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai- 400001 Mumbai –
Slide 2: Q3FY2024 Investors Presentation
Q3FY2024 Investors Presentation One of INDIA’S LARGEST Differentiated Diagnostic Service Provider February 2024
Slide 3: Q3FY2024 Performance
@® Q3FY2024 Performance
Slide 4: 9M FY24 Financial At a Glance
Krsnaa Diagnostics Krsnaa Financial- Diagnostics 9M FY24At aFinancial- Glance Accelerated Growth Rs. 453 cr 9M FY24 Revenue 28% 27% 20% Normalized Normalized Revenue EBITDA* PAT** YoY Growth YoY Growth YoY Growth Rs. 114 cr | 25%* 9M FY24 EBITDA and EBITDA Margin A Rs. 228 cr 100% Rs. 74 cr | 16%**
Slide 5: Q3FY24 Financial At a Glance
Krsnaa Diagnostics Krsnaa Financial- Diagnostics Q3FY24 At aFinancial- Glance At a Glance Rs. 158 cr Q3 FY24 Revenue 34% 33% Rs. 40 cr | 25%* Revenue Normalized EBITDA* YoY Growth YoY Growth Q3 FY24 EBITDA* and EBITDA Margin* Rs. 26 cr | 16%** Q3 FY24 EBIT** and EBIT Margin 26% Rs. 3.97 Normalized P
Slide 6: 9M FY24 Operations At a Glance
Krsnaa Diagnostics Krsnaa Operations- Diagnostics 9M FY24AtOperations- a Glance At a Glance 1,441 143 Tele-reporting Centres CT/MRI Centres 118 3,247 Total Centres and Labs Pathology Processing Lab 1,545 125+ District Locations Pathology Collection Centres 240+ 17+ Doctors States & Union Territory 1
Slide 7: Core Business Continues to Grow (Q3)
Core CoreBusiness BusinessContinues Continuesto to Grow Grow Delivering Excellence: Achieving 34%YoY Revenue Growth and 33% EBITDA Strengthening, on account of incremental revenues from newly launched centres & operational efficiencies Rs. mn Total Revenue Core Business Revenue 34% 34% YoY YoY 1,555
Slide 8: Core Business Continues to Grow (9M)
Core CoreBusiness BusinessContinues Continuesto to Grow Grow Delivering Exceptional 9M FY24 Results: 28% YoY Total Revenue Growth, 27% EBITDA Strengthening, Resilient Margins, and Promising Future Advancements Rs. mn Total Revenue Core Business Revenue 28% 28% YoY YoY 4,533 4,533 3,539 3,532 9M FY23
Slide 9: Growth Strategy Key developments
Growth Strategy Key developments Shortlisted for providing 17 MRI & 17 CT Services in Maharashtra Shortlisted for providing MRI Service in 5 districts in Madhya Pradesh Bagged contract for providing HPLC test in 21 districts of Maharashtra Operationalised the Pathology project of Assam Introduced ho
Slide 10: Well Capitalized Balance Sheet to Fund the Growth
Core WellBusiness Capitalized Continues BalancetoSheet Growto Fund the Growth (Rs. mn) FY19 FY20 FY21 FY22 FY23 9MFY23 9MFY24 Long Term Debt 937 1,400 1,680 331 243 263 433 Short Term Debt 772 1,112 638 79 82 469 901 Total Debt 1,709 2,512 2,318 410 325 732 1,334 Cash & Cash Equivalents 1,281 1,379
Slide 11: Management Perspectives
Management ManagementPerspectives Perspectives Commenting on the results, Mr. Yash Mutha, Joint Managing Director, said: Commenting on the business, Ms. Pallavi Bhatevara, Managing Director, said: “Krsnaa's exceptional service offerings, characterized by competitive pricing, has played a pivotal rol
Slide 12: Business Overview
@® Business Overview
Slide 13: 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 14: Indian Diagnostic Industry
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 15: 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 16: 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 17: Diagnostic Industry is underpenetrated in rural areas
Indian Diagnostics Diagnostic Industry Industry Diagnostic Industry is underpenetrated in rural areas. Higher Government spend and initiatives is expected to drive PPP model faster than the overall diagnostic Industry 01 02 03 Interim Budget of 2024, Government has The industry is highly fragmented
Slide 18: High Quality Diagnostic Services at Competitive 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: PPP Project Implementation
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 56 9 47 Madhya Pradesh 5 - 5 Total Radiology 73
Slide 27: 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 5 54 24 States and UT CT Scan MRI Scan Maharashtra Uttar Pradesh Dhule Maharashtra Radiology Contract Radiology Contract Radiology Contract Radiolo
Slide 28: 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 3 156 2,734 States Labs Collection centers Dhule Assam BMC Pathology Contract Pathology Contract Pathology Contract • Scope-600 collection • Scope-
Slide 29: 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 30: Business to Direct Customers
Business to Direct Costumers
Slide 31: 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 32: B2C Initiatives So far
B2C Initiatives Centres So far… Maturity Profile “ Our Initiative towards Private Vertical (B2C) “ Wellness Packages “Ayakshyam” – Receiving good response since the start from June 2023 “ Activated Home collection Hub – Pune | Mumbai | Jaipur Amritsar | Ludhiana Jalandhar | Bhatinda I “ Launched Fir
Slide 33: B2C Expansion Strategy
B2C –Maturity Centres Profile Expansion Strategy Retail Market B2C Website Intelligent Customer This platform will offer an extensive range of diagnostic services 360 Insights including blood tests, CT & MRI Scan, making quality healthcare Connected Systems Personalized Marketing accessible to every
Slide 34: Enhancing Visibility and Awareness
Enhancing Visibility Enhancing and and Visibility Awareness Awareness IN-SHOP BRANDING PROMOTIONAL BRANDING HEALTH CHECKUP CAMP COCO 33
Slide 35: Awards and Accolades
Enhancing Visibility Awards and and Awareness Accolades Best Diagnostic Lab Chain of the year (West) 34
Slide 36: Experienced Leadership Team
Experienced Leadership Experienced Team Leadership Team Rajendra Mutha Pallavi Bhatevara Dr. Prashant Deshmukh Yash Mutha Chief Executive Officer Executive Chairman Managing Director Joint Managing Director • 13+ years of experience in • 12+ years of experience in the • 10 years of experience in the
Slide 37: 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 38: Way Forward
@® Way Forward
Slide 39: 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 40: 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 41: Financials
Financials
Slide 42: Quarterly Financial Performance
Quarterly QuarterlyFinancial Performance Financial Performance (Rs. mn) Q3FY24 Q3FY23 Y-o-Y Growth Q2FY24 Q-o-Q Growth 9MFY24 9MFY23 Y-o-Y Growth Core Business 1,583 1,180 1,555 4,533 3,532 Covid-19 Business - 1 - - 7 Revenue from Operations 1,583 1,181 34% 1,555 2% 4,533 3,539 28% Other Income 41 4
Slide 43: 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