Slide 1: Krsnaa Diagnostics filing cover letter
• Krsna DI AGNOSTICS' LET'S DO GOOD ' Date: 28th May, 2023 BSE Ltd. The National Stock Exchange of India Ltd. Corporate Service Department Exchange Plaza, 3rd Floor, i st Floor, P.J. Towers, Plot No. C/1, 'G' Block, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai 400 001 Mumbai 400 051 Scrip
Slide 2: FY2023 & Q4 Investors Presentation
One of INDIA’S LARGEST Differentiated Diagnostic FY2023 & Q4 Investors Presentation Service Provider www.krsnaadiagnostics.com
Slide 3: FY2023 and Q4 Performance
FY2023 and Q4 Performance 2
Slide 4: Krsnaa Diagnostics Financial - At a Glance
Krsnaa Diagnostics Financial- At a Glance Rs. 487 cr 33% 35% 36% FY23 Revenue Pathology Radiology Revenue Revenue Revenue 5Y CAGR 5Y CAGR 5Y CAGR Rs. 124 cr | 25% FY23 EBITDA* and EBITDA Margin 34% 66% A (Stable) EBITDA* PAT ICRA Rating 5Y CAGR 5Y CAGR Rs. 62 cr | 13% 100% 56 Rs. 272 cr FY23 PAT and
Slide 5: Krsnaa Diagnostics Operations - At a Glance
Krsnaa Diagnostics Operations- At a Glance 1,528 133 Tele-reporting Centres CT/MRI Centres 99 2,850 Total Centres and Labs Pathology Processing Lab 1,090 120+ District Locations Pathology Collection Centres 220+ 17+ Doctors States & Union Territory 31 Mn+ 10 Mn+ 33% 42 Total Centre Count Patients Se
Slide 6: Tenders won in the last 12 Months - Strong pipeline for growth
Tenders won in the last 12 Months - Strong pipeline for growth in a competitive market Jun 2022 Jul 2022 Jan 2023 Feb 2023 Apr 2023 Bombay Tripura Rajasthan Odisha Municipal Mirabhyander X-Ray Tele- Radiology Pathology Cooperation Reporting Contract Contract Pathology Established 1 Contract Contract
Slide 7: FY2023: Performance Highlight
FY2023: Performance Highlight Core business continues to deliver stellar Revenue growth of 15% Y-o-Y EBITDA of Rs. 124 Cr, in-spite of squeeze on EBITDA due to costs incurred for establishing new centers, the margins stood at 25% and Net Profit of Rs. 62 Cr with margins of 13% Rs. Million Total Reve
Slide 8: Q4 FY2023: Performance Highlight
Q4 FY2023: Performance Highlight Core business continues to deliver stellar Revenue growth of 25% Y-o-Y Strong EBITDA of Rs. 35 Cr with margins of 26% and Net Profit of Rs. 19 Cr, with margins of 14% Rs. Million Total Revenue Core Business Revenue Covid-19 Revenue +23% +25% 1,331 (97)% 1,332 YoY 20
Slide 9: Operational Performance Trend
Operational Performance Trend Double digit growth in radiology centres and Doubling up in the pathology labs and pathology collection centres Number of CT / MRI Centres 24% Y-o-Y Number of Tele-Radiology Centres 11% Y-o-Y 133 107 1,528 1,381 FY22 FY23 FY22 FY23 Number of Pathology Labs 102% Y-o-Y Nu
Slide 10: Operational Performance Trend
Operational Performance Trend Significant increase in number of patients and number of tests ▪ There has been a significant surge in patient and test Number of Test (in Mn) 39% Y-o-Y volume across all modalities, with tele-reporting tests experiencing a particularly substantial rise. This has 24.04
Slide 11: Management Perspectives
Management Perspectives Commenting on the business, Ms. Pallavi Bhatevara, Managing Commenting on the results, Mr. Yash Mutha, Executive Director, Director, said: said: “Krsnaa Diagnostics has firmly established itself as the leading provider of “In Fiscal Year 2023, Krsnaa Diagnostics demonstrated
Slide 12: Annual Performance
Annual Performance 11
Slide 13: Revenue and Profit After Tax Growth Trend
Revenue and Profit After Tax Growth Trend Revenue (in Mn) + 84% + 35% 4,871 CAGR Since Inception 4,555 CAGR Last 5 Years 3,965 2,584 2,098 1,081 668 274 366 464 6 175 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Profit After Tax* (in Mn) + 66% CAGR Last 5 Years 684 621 315 125 125 21
Slide 14: Strong CAGR Growth with Healthy Business Mix
Strong CAGR Growth with Healthy Business Mix Radiology and Pathology Revenue grew by 4.7 times and 4.2 times respectively in last 5 years Remains one of the Fastest growing diagnostics service provider Rs. Million Radiology Revenue Pathology Revenue excluding Covid-19 +36% 3,224 +33% CAGR CAGR 1,748
Slide 15: Cash Collection and Cash Flow Conversion
Cash Collection and Cash Flow Conversion Receivables Days EBITDA to Cash Flow Conversion* 97 98 120% 116% 114% 87 101% 69 80% 56 72% 46 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 • Krsnaa has built a strong cash flow generating business model backed by strong cash flow conversion cy
Slide 16: Well Capitalized Balance Sheet
Well Capitalized Balance Sheet (Rs. Million) FY19 FY20 FY21 FY22 FY23 Long Term Debt 937 1,400 1,680 331 243 Short Term Debt 772 1,112 638 79 82 Total Debt 1,709 2,512 2,318 410 325 Cash & Cash Equivalents 1,281 1,379 1,624 3,480 2,719 Net Debt / (Net Cash) 428 1,133 694 (3,070) (2,394) Total Equity
Slide 17: Financial Performance
Financial Performance (Rs. Million) Q4FY23 Q4FY22 Y-o-Y Growth Q3FY23 Q-o-Q Growth FY23 FY22 Y-o-Y Growth Core Business 1,331 1,062 25.3% 1,180 12.8% 4,864 4,236 14.8% 1 Covid-19 Business 1 20 (96.8)% 1 (34.4)% 7 319 (97.8)% Revenue from Operations 1,332 1,082 23.1% 1,181 12.8% 4,871 4,555 7.0% Othe
Slide 18: Balance Sheet
Balance Sheet Assets (In Million) FY22 FY23 Equity and Liabilities (In Million) FY22 FY23 Non-Current Assets 5,420.06 6,841.31 Total Equity 6,844.09 7,387.36 Equity share capital 156.99 156.99 Property, plant and equipment 3,833.79 4,678.47 Instruments entirely equity in nature - - Capital work-in-p
Slide 19: Business Overview
Business Overview 18
Slide 20: Diagnostic Industry
Diagnostic Industry Indian Healthcare Industry Indian Diagnostic Industry Key drivers in the Indian radiology and Hospitals 15% 920-980 pathology market: CAGR 9% 710-730 13-14% Diagnostic CAGR 684 •Increasing population: India has a large 20% and growing population, which is leading to 472 Pharma an
Slide 21: Future of Public Private Partnership (PPP) in Healthcare
Future of Public Private Partnership (PPP) in Healthcare Extension Extension Healthcare Continuum Healthcare systems of care of care worldwide are facing increasing pressures due to factors like an aging Rehabilitation care population, chronic diseases, and evolving Emergency care End of Life care h
Slide 22: High Quality Diagnostic Services at Disruptive Prices
High Quality Diagnostic Services at Disruptive Prices Krsnaa offers tests at 60-80% Lower than market rates and yet maintain sustainable EBITDA % 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 Diagno
Slide 23: Track Record of Successful Fast-Pace Expansion
Track Record of Successful Fast-Pace Expansion 2022 2023 2020 2021 Expansion Expanded strategic tie-up with Private Centres – 2,800+ Hospital Expansion States and UT– 17 Expansion Private Centres – 14 Centres – 2,000+ Pan India Centres – 1,300+ First time in India States – 14 Expansion States – 13 T
Slide 24: India's 1st NABH Accredited Teleradiology HUB
India’s 1st NABH Accredited Teleradiology HUB Krsnaa Diagnostics hub and spoke model radiology facility in Pune is fully capable to process large volumes ▪ Scalable business model and enables wider penetration into tier II and tier III cities Patient Report delivered to Entry ▪ Analog images gets co
Slide 25: Only Company with Pan India Presence in Both Radiology and Pathology
Only Company with Pan India Presence in Both Radiology and Pathology Well Diversified Regional Revenue Mix 6% 5% 10% 28% FY2022 FY2023 44% 23% 61% 23% West South North East High Headroom to Grow ▪ Highest penetration across districts with presence in 120+ out of 700+ districts; still large underpene
Slide 26: Krsnaa Competitive Advantages
Krsnaa 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 visibility of revenues •Gover
Slide 27: Strategic Pillars of Growth
Strategic Pillars of Growth 26
Slide 28: 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 1 Tap the growing and underpenetrated diagnostic market by participating in new PPP tender 2 Focus on timely and successful implement
Slide 29: FY2023 – Radiology Tenders Won and Assets to be deployed
FY2023 – Radiology Tenders Won and Assets to be deployed Assets to be Deployed 5 51 2 States and UT CT Scan MRI Scan Maharashtra Tripura Uttar Pradesh Dhule Municipal Cooperation Radiology Contract Tele-Reporting Contract Radiology Contract Radiology Contract • Scope- 39 CT Scan • Scope- X-Ray Tele-
Slide 30: FY2023 – Pathology Tenders Won and Assets to be deployed
FY2023 – Pathology Tenders Won and Assets to be deployed Assets to be Deployed 3 158 2,281 States Labs Collection Centers Dhule Municipal Cooperation Odisha Bombay Municipal Cooperation Pathology Contract Pathology Contract Pathology Contract • Scope- 1 Pathology lab • Scope-600 collection centres •
Slide 31: PPP Project Implementation on Track
PPP Project Implementation on Track Radiology Centres Growth State Agreement Total Centres Operational Under Implementation Uttar Pradesh Executed 8 4 4 Delhi Executed 1 - 1 DMC Executed 1 - 1 Mira Bhayandhar MC Executed 1 - 1 Rajasthan To be Executed 1 - 1 Maharashtra To be Executed 39 - 39 Total R
Slide 32: Centres Maturity Profile
Centres 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 through digital marketing ▪
Slide 33: B2C Pathology Strategy for FY2024
B2C Pathology Strategy for FY2024 Expanding test menus by adding more specialized tests at Core strategy is to set up and operationalize Home Collection disruptive prices Hub and Preventive Health check up promotion in Two Phases Molecular Diagnostics Flow Cytometry Histopathology & IHC Markers Spec
Slide 34: Best-in-class infrastructure and services at disruptive rates
Best-in-class infrastructure and services at disruptive rates – high brand recall leading to increased foot-falls High quality infrastructure and services at disruptive prices creates market awareness and drives direct walk-ins 4 Growth Strategy 33
Slide 35: Retail Market Expansion Strategy Leveraging Digital Initiatives
Retail Market Expansion Strategy Leveraging Digital Initiatives R&A – Customer Review Social Media Customer WhatsApp Call Centre Customer Business Hub Engagement Tool Strategy Dedicated Website Mobile Application 5 Growth Strategy 34
Slide 36: Enhancing Visibility and Awareness
Enhancing Visibility and Awareness 5 Growth Strategy 35
Slide 37: Experienced Leadership Team
Experienced Leadership Team Rajendra Mutha Pawan Daga Executive Chairman Pallavi Bhatevara, Yash Mutha Chief Financial Managing Director Whole Time Director Officer • 12+ years of experience in the • 10 years of experience in the • 14+ years of experience in the • 12+ years of experience in field of
Slide 38: Board of Directors – Diversified Experience and Background
Board of Directors – Diversified Experience and Background Chetan Desai Chhaya Palrecha Rajiv Ranjan Verma Independent Director Independent Director Independent Director • Practicing Chartered Accountant with a wide- • Chartered Accountant with 24 years of experience • Superannuated as Director Gene
Slide 39: Krsnaa Diagnostics Edge
Krsnaa Diagnostics Edge One of the Fastest Extensive Strong Brand Scalable and Disruptive Pricing Stakeholder Value Growing Geographic Equity Agile Business Creation Diagnostics Footprint Model Service Provider in the country ₹ Total Centre count Centres across India Well positioned to PPP is an ass
Slide 40: Factsheet
Factsheet Key Valuation Metrics 26-May-23 35% 66% NSE Ticker KRSNAA Revenue CAGR PAT CAGR BSE Ticker 543328 5Y (FY18-23) 5Y (FY18-23) Share Price (in Rs) 503.4 Number. of Shares ( in Cr) 3.14 36% 33% Equity Value (Rs. Cr) 1,580.5 Radiology Revenue Pathology Revenue Gross Borrowings (Rs. Cr) – 31 Mar
Slide 41: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on 31st March 2023 Top Institutional Shareholders – 31st March 2023 % Holding Others, Promoters, 28.1% 27.8% Tata Mutual Fund 5.3% ICICI Prudential Pharma 5.1% Insurance Aditya Birla Sun 4.0% Companies, 6.5% HDFC Life Insurance 1.8% Phi Capital, 15.9% HSB
Slide 42: Contact Information
Contact 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 and economic perfor