Vijaya Diagnostic Centre Ltd. · NSE:VIJAYA
Vijaya Diagnostic Centre — Q1 FY24 Earnings Presentation
42 slides from Vijaya Diagnostic Centre's earnings presentation, Aug 9, 2023
Slide 1: Exchange cover letter for investor presentation
August 9, 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 C
Slide 2: Q1 FY24 Earnings Presentation, August 9, 2023
Q1 FY24 Earnings Presentation, August 9, 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: Q1 FY24 Financial Performance
Q1 FY24 Financial Performance
Slide 5: Disclaimer
Disclaimer Disclaimer "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 expected pattern of consumption of the futur
Slide 6: Q1 FY24 – Performance Snapshot
Q1 FY24 – Performance Snapshot Operational & Financial Highlights – Q1 FY24 2.62 Mn Tests 0.79 Mn INR 1,210.5 Mn INR 1,206.1 Mn +19.2% +20.3% Footfalls Non-COVID Non COVID Non COVID Revenue from operations Revenue test volume Revenue2 growth (YoY) growth (YoY) 121 Centres INR 481.2 Mn INR 262.0 Mn E
Slide 7: Management comment
Management comment Commenting on the Q1FY24 results performance, Ms. Suprita Reddy, MD & CEO at Vijaya Diagnostic Centre Ltd. said: “I am delighted to share that we have commenced this fiscal year on a positive note. In the quarter gone by, Vijaya effectively capitalized on the increasing demand for
Slide 8: Key Financial Highlights – Q1 FY24
Key Financial Highlights – Q1 FY24 Revenue from Operations EBITDA & EBITDA Margin (%) 4,624 4,592 38.2% 40.6% 39.8% 44.1% 39.6% 2,037 1,820 1,044 1,210 1,210 399 491 481 Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 20.6% -10.6% Shift YoY (%) 16.0% -0.7% PAT & PAT Margin (%) 16
Slide 9: Revenue Mix – Q1 FY24
Revenue Mix – Q1 FY24 Radiology vs. Pathology Breakdown Non-COVID & COVID Allied Breakdown Radiology Pathology Non Covid Covid 3% 1% 0% 64% 64% 63% 67% 65% 97% 99% 100% 36% 36% 37% 33% 35% Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Q1 FY23 Q4 FY23 Q1 FY24 Non-COVID YoY (%) 19.2% COVID YoY (%) -86.1% B2C Cont
Slide 10: Q1 FY24 – Key Developments
Q1 FY24 – Key Developments Inaugurated a state-of-the-art hub in Kolkata, West Bengal in July 2023 • This marks the beginning of a significant milestone in Vijaya’s Growth Plan, foraying into the diagnostic space in this region Kolkata, which holds a lot of opportunities for an integrated diagnostic
Slide 11: Q1 FY24 - Financial and Operational Discussions (Y-o-Y)
Q1 FY24 - Financial and Operational Discussions (Y-o-Y) • Revenue from Operations increased by 16.0% YoY to Rs. 1,210 Mn, Non-Covid Revenues grew by 19.2% YoY o The Non-COVID revenue growth is primarily driven by volume growth. Additionally, the strong growth in the radiology and pathology segments
Slide 12: Key Operational Highlights
Key Operational Highlights Tests Performed (# in Million) Footfalls (# in Million) Tests / Footfalls (# in Million) 3.62 10.05 3.18 3.37 3.34 3.17 9.32 2.98 2.57 2.23 2.71 2.62 0.75 0.80 0.79 Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Revenu
Slide 13: Consolidated Profit & Loss Account – Q1 FY24
Consolidated Profit & Loss Account – Q1 FY24 Particulars Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q Revenue from operations 1,210.5 1,043.6 16.0% 1,209.9 0.0% Cost of materials consumed 142.9 130.3 9.6% 155.3 -8.0% Employee benefits expense 208.5 194.8 7.1% 195.3 6.8% Other expenses 377.9 319.6 18.3% 368.3
Slide 14: Company Overview
VIJAYA DIAGNOSTIC CENTRE Company Overview
Slide 15: 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 Our Mission is to make the patient’s medical Di
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 21
Slide 23: 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 Sticky individual customer (INR) 1,431 1,446 1,228 1,214 1,276 “For exc
Slide 24: Robust Technical Capabilities with State-of-the-art IT Infrastructure
Robust Technical Capabilities with State-of-the-art IT Infrastructure 23 8 Advanced Software to Manage Clinical Data CT Machines PET CT / Gamma machines 24 200+ MRI Machines Fully Integrated Radiology Radiologists, Lab Doctors & Advance Laboratory Information Systems (RIS) and Physicians Information
Slide 25: Doctors connect program
Doctors connect program Vijaya Diagnostic Centre, in association Vijaya Diagnostic Centre, in association Vijaya Diagnostic Centre, in association with Warangal Orthopaedic Surgeons with Warangal Obstetrics & with Indian Medical Association Association organized a continuing Gynaecological Society o
Slide 26: Experienced Board of Directors
Experienced Board of Directors Dr. S Surendranath Reddy – Founder and 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
Slide 27: Strong Management Team
Strong Management Team Dr. S. Surendranath Reddy Ms. Suprita Reddy Mr. Sunil Chandra Kondapally Mr. Narasimha Raju K.A Founder and Executive Managing Director and Chief Executive Director Chief Financial Officer Chairman Executive Officer Mr. Sheshadri Vasan Mr. Sivaramaraju Vegesna Mr. Hansraj Sing
Slide 28: Awards & Accolades
Awards & Accolades Excellence In Comprehensive As one of the ‘Most Preferred Most Trusted Brand of the Pride of India Brands Award Best Healthcare Brands Best Healthcare Brands 2022 Diagnostic Care Workplace 2022’ Year 2023 2022 2023 2023 2022 - 23 2023 2022 2022 The Economic ABP Ananda Brought to P
Slide 29: Shareholding Pattern as of 30th June 2023
Shareholding Pattern as of 30th June 2023 Others FII’s 5.7% Marquee Institutional Investors 20.3% Wasatch Advisors Nippon Life India Promoter & Promoter group Aberdeen Standard Investments 55.0% Prudential ICICI Trust Ltd. 19.0% Axis MF DSP Healthcare Fund Mirae MF DIIs Verdipapirfondet Odin Emergin
Slide 30: Strategy Going Forward
VIJAYA DIAGNOSTIC CENTRE Strategy Going Forward
Slide 31: 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 32: 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 set up additional diagnostic centres South India Strategy ar
Slide 33: 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 34: Financial & Operational Highlights
Financial & Operational Highlights
Slide 35: 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 36: Consistent Financial Performance
Consistent Financial Performance 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% 44.1% 22.
Slide 37: 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 (%) 22% 23% 23% 23% 43% 38% 33% 16% 30% 25% FY19 FY20 FY21 FY22 FY23 FY19
Slide 38: Annexure
VIJAYA DIAGNOSTIC CENTRE Annexure
Slide 39: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account 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 1,081 EBITD
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet 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 capital 102 10
Slide 41: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 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 1,084 Changes
Slide 42: Thank You
Thank You Company Investor Relations Advisors Vijaya Diagnostic Centre Limited (VDCL) Citigate Dewe Rogerson (CDR India) Mr. Siva Rama Raju Mr. Anoop Poojari / Mr. Devrishi Singh Head – Strategy & Investor Relations Tel: +91 98330 90434 / +91 98205 30918 +91 99485 95555 / +91 90597 00749 anoop@cdr-i
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