Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Q3 FY16 Earnings Presentation
25 slides from Dr. Lal Pathlabs's earnings presentation, February 2016
Slide 1: Corporate Presentation Q3 & 9M FY16
Dr Lal PathLabs Limited Corporate Presentation Q3 & 9M FY16
Slide 2: Table of Contents
Table of Contents 1 Our Evolution 2 Dr Lal PathLabs at a glance 3 Investment Highlights 4 Key Q3 & 9M FY16 Highlights 5 Notes to Accounts 6 Q3 & 9M FY16 Financial Performance 7 Q3 & 9M FY16 Financial Trends 8 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places.
Slide 3: Our Evolution
Our Evolution 1949 – 2005 2005 – 2010 2010 – 2015 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major 2005 onwards: Investment Investment by TA Associates S. K. Lal by WestBridge Capital Clinical labor
Slide 4: Dr. Lal PathLabs at a glance
Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 172 clinical labs (including National Reference Lab1 at Delhi),1,554 Patient Bio-chemistry Molecular Service Centers (PSCs) a
Slide 5: Experienced Management Team
Experienced Management Team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Whole-time Director and Chief Chairman and Managing Director Whole-time Director Executive Officer Dilip Bidani Manoj Garg Shankha Banerjee Chief Financial Officer Chief Human Resources Officer COO – Strategic
Slide 6: Investment Highlights
Investment Highlights Well-positioned in one of Scalable model integrated Established consumer the fastest-growing through centralized IT healthcare brand in segments of the Indian platform allows for diagnostic services healthcare industry network expansion Attractive operating Robust financial met
Slide 7: Indian Healthcare Services is a large growth opportunity
Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2026 India, highly underpenetrated market 7.4% Expected GDP growth in FY161 INR 4.2 trillion Total Healthcare Expenditure as % of GDP (2013) FY14 India healthcare expenditure 17.1% ~68% Private expenditur
Slide 8: Growth Drivers
INR 377 bn Diagnostic Services industry expected to grow to INR 600 bn by FY18 Diagnostic Services Industry Size CAGR: INR 600 bn Growth Drivers 16–17% INR 377 Increase in evidence-based 1 bn treatments 2 Demand for lifestyle diseases- related services to grow 2014–15E 2017–18P 3 Focus on preventive
Slide 9: Diagnostic Services industry remains highly fragmented
Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Centres, 48% Large Pan- India Chains 35-40% Diagnostic Regional Chain, 15% Chains 60- 65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Indust
Slide 10: Pillars of a Strong Brand
Established consumer healthcare brand in Diagnostic Services Pillars of a Strong Brand Accreditations Nationwide Network Fast Turnaround Time Accreditations from CAP, Coverage in metros, Tier 1 24x7 access including online NABL and ISO and Tier 2 cities access and home collection Centrally a
Slide 11: Hub and Spoke Model Network Expansion
Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Clinical No. of PSCs No. of PUPs Reference Laboratories Lab Clinical Clinical 1,554 7,059 Lab Lab 1,475 1,340 172 1,271 5,667 164 1,064 PSC PSC PSC PSC 1,009 4,
Slide 12: Integrated National Network backed by Centralized IT platform
Scalable Model integrated through centralized IT platform allows for network expansion (Cont’d) Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource Payables, receivables, inventory, ledgers etc. Planning (ERP) Scalability and connect
Slide 13: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn) Higher revenue realization per Consumer brand and network patient on account of: Increase in samples with patient expansion driving patient Growth in walk-in customers volumes growth volumes Higher
Slide 14: Multiple levers in place to drive next phase of growth
Multiple levers in place to drive next phase of growth Expand through Expand presence in Focus on hospital- strategic acquisitions existing markets based clinical labs and partnerships Cluster and focused geography approach M&A provides growth kicker Increase existing tie-ups Deepen presence
Slide 15: Strategies to deepen our presence
Strategies to deepen our presence South and North India East India West India Focus on Preventive healthcare retail Commitment to quality Online report; screening and chronic network and and reliability of data analytics / lifestyle disease home services management services collection Provide both l
Slide 16: Robust financial performance
Robust financial performance Total Revenue Revenue by Geography (FY15) EBITDA1, 2 ,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West Int’l Before ESOP 27.6% 27.9% 27.6% 27.5% South India 1% charge1 India 8% 6% PAT Margin 12.2% 14.3% 14.3% 9.2% East India RONW 34.3% 34.7% 27.9%
Slide 17: Robust financial performance (Cont'd)
Robust financial performance (Cont’d) Net Cash Flow from Operating Activities / Capex Fixed Asset Turnover1 Cash and Cash Equivalents INR (Mn) (Times) (INR mn) Capex 238 237 336 165 2350 3.3x 3.3x 980 979 881 3.1x 1861 817 716 379 1143 86 763 1,533 1,482 548 1,057 215 FY13 FY14 FY15 6M FY16 FY13 FY1
Slide 18: Key Q3 & 9M FY16 Highlights
Key Q3 & 9M FY16 Highlights Steady growth continues –outlook remains positive and promising Operational scale up of business in line with plan Strengthened position in core markets and expanding in new markets Asset light balance sheet with fixed asset investments focused on specific goals a
Slide 19: Q3 & 9M FY16 Financial Trends
Q3 & 9M FY16 Financial Trends Revenues Traditionally Q3 is a slightly moderated quarter for patient inflows Q3 FY16 revenue growth driven by: Continuing benefit from improvement in volume of samples and increase in patient count Further expansion of network in core geographies namely, North,
Slide 20: Notes to Accounts
Notes to Accounts Prior to listing the Company’s equity shares, the accounting of options granted/shares issued against exercise of options under ESOP Plan 2010 was carried out on cash settled basis as per provisions of said plan. Accordingly, liability created of Rs. 166.3 mn as on September 30,
Slide 21: Q3 & 9M FY16 Financial Performance
Q3 & 9M FY16 Financial Performance Particulars (Rs. mn) Q3 FY16 Q3 FY15 Growth % 9M FY16 9M FY15 Growth % Total Revenues 1,885.7 1,558.3 21.0% 5,936.1 4,877.5 21.7% Total Expenditure 1,185.1 1,175.5 0.8% 4,380.2 3,755.8 16.6% EBITDA 700.6 382.8 83.0% 1,555.9 1,121.7 38.7% EBITDA (without ESOP revers
Slide 22: Annexures
Annexures • IPO transaction • Present Shareholding 22
Slide 23: IPO transaction
IPO transaction Issuer Dr. Lal PathLabs Limited (“LPL” or “the Company”) Transaction Type Initial public offering of up to 11,600,000 shares (Face Value Rs.10 each) Issue Open and Close Dates December 8, 2015 – December 10, 2015 Type of Offering Offer for Sale by existing shareholders Total
Slide 24: Shareholding as on December 31, 2015
Shareholding as on December 31, 2015 58.7 Promoters 1.94 MFs FPIs FI/Banks 4.25 FII 29.22 2.37 Other Public 3.5 Employee Trust 0.02 24
Slide 25: Contact us
Contact us About Dr Lal PathLabs Limited (LPL) Dr Lal PathLabs Limited is one of India’s leading consumer healthcare brand in diagnostic services. It has an integrated nationwide network, where patients and healthcare providers are offered a broad range of diagnostic and related healthcare tests and