Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Q4 FY2022 Earnings Presentation
46 slides from Dr. Lal Pathlabs's earnings presentation, May 23, 2022
Slide 1: Exchange filing cover letter
May 23, 2022 National Stock Exchange of India Limited BSE Lim ited Exchange Plaza , Corporate Relationship Department Plot No. C/ 1, G Block, Phiroze Jeejeebhoy Towers Sandra Kurla Complex Sand ra (E) Dalal Street Mumbai - 400 051 Mumbai - 400 00 1 Subject: Corporate Presentation Q4 & FY22 Dear Sir/
Slide 2: Dr. Lal PathLabs Corporate Presentation May 2022
Dr. Lal PathLabs Limited (DLPL) Corporate Presentation May 2022
Slide 3: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by Dr. Lal PathLabs Limited (the “Company”) for use in presentat
Slide 4: Table of Contents
Table of Contents Company Overview 4 Investment Highlights 9 Q4 & FY22 Highlights 23 DLPL Strategy for Future Growth 33 DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to Classification: Restricted undetermined contin
Slide 5: Corporate Overview
Corporate Overview Dr. Lal PathLabs at a glance Our Evolution Dr. Lal PathLabs overview Experienced Management team
Slide 6: Dr. Lal PathLabs – At a Glance
Dr. Lal PathLabs – At a Glance India’s Leading & Trusted 20% 20% 120% Diagnostics Company Largest* 3 Year Revenue 3-Year PAT Equity Dividend CAGR CAGR for FY 21-22 diagnostics 70+ years of experience chain in the in the field of diagnostics country with ~44% Rs. 344 crore (Net) PAN India ROCE Cash &
Slide 7: Our Evolution
Our Evolution 1949 – 2005 2010 – 2015 2020 onwards Strong position in Pan India Player – Foundation 2005 – 2010 North India, building 2015 -2020 Acquired Suburban, network in other Building South geographies Higher contribution from Ecosystem Building Rest of India, capabilities for Commissioned sta
Slide 8: Dr. Lal PathLabs overview
Dr. Lal PathLabs overview Established consumer healthcare brand in diagnostic services Routine testing Specialized testing Pan-India integrated coverage with 277 clinical labs Bio- Molecular Proteomics chemistry diagnostics (including National Reference Lab1 at Delhi and Regional Ref Lab at Test Men
Slide 9: Experienced Management team
Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Bharath Uppiliappan Ved Prakash Goel Executive Chairman Managing Director Whole-time Director Chief Executive Officer Group Chief Financial Officer Shankha Banerjee Munender Soperna Rajat Kalra Manoj Garg Compa
Slide 10: Investment Highlights
Investment Highlights
Slide 11: Investment Highlights
Investment Highlights Demonstrated high scalability, integrated through centralized IT platform for Largest consumer healthcare network expansion Best-in-class and consistent brand in diagnostic services, financial track record with with unmatched reputation healthy return ratios Well poised to garn
Slide 12: Indian Healthcare Services is a large and growing opportunity
Indian Healthcare Services is a large and growing opportunity Total Healthcare Expenditure as % India’s expected population in 20251 India GDP in FY232 of GDP (2019)5 India 3.0% China 5.4% Russian Federation 5.7% Government Expenditure on healthcare (as % of GDP) in FY253 South Africa 9.1% Brazil 9.
Slide 13: Drivers of India diagnostic services market
Drivers of India diagnostic services market Diagnostic Services Industry Size Growth Drivers 14-16% CAGR ~Rs. 980 Bn ~Rs. 710 Bn FY21 FY23E Demand Focus on for lifestyle Increase in Screening, early detection, and monitoring preventive diseases-related evidence-based reduce downstream costs services
Slide 14: Diagnostic Services industry continues to remain highly fragmented
Diagnostic Services industry continues to remain highly fragmented Standalone Centres 46% Pan- India Chains Highly ~35% Diagnostic Fragmented 17% Chains Industry Regional Chains ~65% 37% Hospital Based Labs Largely fragmented and unorganized Source: Industry Data, Centrum Institutional Research Repo
Slide 15: Established reputed consumer healthcare brand in Diagnostic Services
Established reputed consumer healthcare brand in Diagnostic Services Lab/PSCs Pillar of a Strong Brand Sample Collection Home Online • Accreditations from Registration CAP, NABL and ISO Offline • Centrally Accreditations Walk-in administered customers surveillance Diverse and programs account for Na
Slide 16: Collection network
Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab & Regional Ref. Lab Single brand pulls patients Clinical Labs (Testing/Collection) Walk-in customers account for Patient Service Centers Pickup Points highest share of
Slide 17: Digital Touchpoints across patient journey
Digital Touchpoints across patient journey Digital Point Of Sale Applications Sample Collection Logistics SCALABLE INFRA – LEVERAGING POWER OF CLOUD DATA LAKE – REAL TIME ANALYTICS MICROSERVICS BASED ARCHITECTURE Phlebo App – Scan lab number, Documentation, SECURED APPLICATIONS Order Closures for
Slide 18: Extending Digital Properties to our Partners
Extending “Digital Properties” to our Partners to enhance Partner Experience Digital Onboarding Registration • Self initiated seamless digital onboarding • Integrated patient order booking workflow • Alert center for faster communication with historical data • Tie up with partners for faster Partner
Slide 19: Control Tower Implementation
Control Tower Implementation “Control Tower” implementation provides a complete visibility of Patient samples across the sample processing lifecycle. The insights will help the business users to reduce delay and improve processing leading to better customer service. Control Tower Teams Key Highlight
Slide 20: Scalable Model integrated through centralized IT & digital platforms
Scalable Model integrated through centralized IT & digital platforms allows for network expansion Integrated National Network… Network Expansion No. of Clinical Laboratories* No. of PSCs No. of PUPs 10,59 277 4,731 9 231 9,247 216 3,705 3,095 6,995 National Reference Laboratory Regional Reference La
Slide 21: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue Non-covid Revenue (Mn) (Mn) (INR Cr.) (INR Cr.) CAGR: 19% CAGR: 18% CAGR: 25% CAGR: 13% 27.3 2087 1691 66.0 20.3 1581 1330 1257 19.4 47.7 49.7 1330 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 • Consumer brand a
Slide 22: Robust financial performance
Robust financial performance Total Revenue South Others EBITDA*,PAT and Return on Net Worth (INR Cr.) India (INR Cr./%) 2% 7% CAGR: 25% West Delhi & Normalised EBITDA* Normalised PAT** India NCR 2087 14% 34% 600.4 1581 Revenue by 1330 East Geography 462.6 365.6 369.1 India (FY22) 296.5 15% 227.6 Res
Slide 23: Robust financial performance (Cont'd)
Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents Times (INR Cr.) • Self funded growth on 926.6 account of strong cash flow 10.0x 10.2x generation 8.5x • Attractive fixed asset 580.0 turnover ratio given asset- light model 278.8 • Current net cash position 164.3 a
Slide 24: Q4 & FY22 Highlights
Q4 & FY22 Highlights
Slide 25: FY22 Snapshot
FY22 Snapshot 32.0% INR 2087.4 Cr 34.5% INR 1691.3 Cr Revenues Non Covid Revenues Margin 34.7% 27.3 Mn 28.8% INR 600.4 Cr Patients Normalised EBITDA* 32.7% 66.0 Mn Margin 17.7% INR 369.1 Cr Samples Normalised PAT** * Normalised EBITDA excl. RSU, CSR **Normalised PAT excl. notional depreciation on co
Slide 26: Q4 FY22 Snapshot
Q4 FY22 Snapshot 12.7% INR 485.5 Cr 12.2% INR 419.7 Cr Revenues Non Covid Revenues Margin 13.2% 6.7 Mn 26.9% INR 130.7 Cr Patients Normalised EBITDA* 8.0% 16.3 Mn Margin 15.0% INR 72.9 Cr Samples Normalised PAT** * Normalised EBITDA excl. RSU, CSR **Normalised PAT excl. notional depreciation on cons
Slide 27: Overview of Dr. Lal PathLabs
Overview of Dr. Lal PathLabs Pan-India Unique and Established integrated successful brand coverage Varied Offerings operating model 277 clinical labs Well-positioned (including National Reference Lab at Catalogue of 491 test Scalable model in one of the Established consumer Delhi and Regional panels
Slide 28: Non-COVID, COVID & Allied Revenue
Non-COVID, COVID & Allied Revenue Rs. Cr. Total 431 607 498 497 486 386 438 420 374 386 105 74 43 41 37 49 49 6 8 4 10 2 8 7 10 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Non COVID COVID* COVID Allied 1** COVID Allied 2*** *COVID includes RTPCR and Antibody tests; **COVID Allied 1 includes IL-6 & D-Dim
Slide 29: Key Performance Highlights
Key Performance Highlights Q4 FY22 & FY22: • Revenues up by 12.7% Y-o-Y to Rs. 485.5 crore in Q4 FY22. Revenue up by 32% to Rs 2087.4 crore in FY22 • Normalised EBITDA* is Rs. 130.7 crore, margin of 26.9% in Q4 FY22. In FY22, Normalised EBITDA* is Rs 600.4 crore, margin at 28.8%. • Normalised Profit
Slide 30: Financials
Financials Particulars (Rs. Cr.) Q4’22 Q4’21 Gr % FY'22 FY'21 Gr % Revenue 485.5 431.0 12.7% 2,087.4 1,581.3 32.0% Expenditure 364.5 308.9 1,526.7 1145.0 EBITDA 121.1 122.0 560.7 436.3 Stock based comp., CSR cost 9.6 7.5 39.7 26.3 Normalised EBITDA 130.7 129.5 0.9% 600.4 462.6 29.8% Normalised Margi
Slide 31: Financial Highlights
Financial Highlights All figures in Rs. Crore Revenue Normalised EBITDA* Normalised PBT** Normalised PAT** Total & Non Covid 493.8 369.1 2,087.4 600.4 394.4 296.5 1691.3 462.6 1,581.3 1257.1 +34.5% +32% Margin Margin Margin Margin Margin Margin 24.9% 23.7% 29.3% 28.8% 18.7% 17.7% FY21 FY22 FY21
Slide 32: Management Commentary
Management Commentary Commenting on the results Commenting on the results Commenting on the results announcement, (Hony) Brig. Dr. Arvind announcement, Dr. Om Manchanda, announcement, Mr. Bharath Uppiliappan, Lal, Executive Chairman said: Managing Director said: Chief Executive Officer said: “India
Slide 33: Shareholding as of 31st March, 2022
Shareholding as of 31st March, 2022 27.1% FIIs, FPIS, Foreign Company & NRIs 55.2% Promoter and Promoter 13.2% Group Others 4.5% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well Classification: Restricted 32
Slide 34: DLPL Strategy for future growth
DLPL Strategy for future growth
Slide 35: Vision, Mission & Values
Vision, Mission & Values Be the most trusted Customer First healthcare partner, enabling healthier VISION lives Ethics & Integrity To be an undisputed market Quality leader by providing accessible, VALUES affordable, timely and quality healthcare, diagnostics, applying MISSION Accountability insight
Slide 36: Vibrant Outlook
Vibrant Outlook Target to grow Emphasis on ahead of the Evaluate best fit inorganic digital native approach at industry opportunities in South, and leverage expertise of recently front as well acquired Suburban brand in as back end West Strongly develop Rest of Higher contribution from India geograp
Slide 37: DLPL Strategy for future growth
DLPL Strategy for future growth 01 Strengthen Expansion in Offerings Existing Operations 04 02 Geographic Customer centric approach expansion 03 Classification: Restricted 36
Slide 38: DLPL Strategy for future growth
DLPL Strategy for future growth • Boosting quality & reliability standards • Improving turnaround times for testing • Online initiatives and data analytics Strengthen Existing • Investment in branding Operations • Improve breadth of diagnostic testing • Cutting edge technology • Preventive healthcar
Slide 39: Consistent investments in R&D
Consistent investments in R&D DSIR recognized In House R&D unit with Sanger an experienced team Sequencing, Single Variant of research scientists and doctors Sickle Cell Trio Leigh Syndrome Prenatal Mitochondrial Mutation Mutation Detection Successful Detection commercialization of tests Jawaharlal
Slide 40: Genevolve: The Genomics initiative
Genevolve: The Genomics initiative GENEVOLVE- Genetic Testing Your Smart Choice Genevolve: Genomics division focuses on Genetic testing Offers wide range of key tests related to Oncogenomics, Neurogenomics, Rare disease & Pre- natal/ Post-natal Tests are carried out using cutting edge technologies s
Slide 41: In-house adoption of Digital Histopathology
In-house adoption of Digital Histopathology Opportunities created by Digital Reporting of Digital Histopathology Breast cancer Panels using AI based • Enhanced access to second algorithms opinion, synchronous review of slides • Enhanced quality of reporting • Potential for insourcing services • Leve
Slide 42: Highest Quality Standards in the Industry
Highest Quality Standards in the Industry Best in the Industry CAP Proficiency Testing Score at 97.9% for National Reference Lab Consistently high EQAS Performance Testing Score at 98.6% for Satellite Labs NABL Accreditation granted to 18 Labs for processing Covid-19 samples 100+ Quality Digitally e
Slide 43: Best in class Logistics and Supply Chain management
Best in class Logistics and Supply Chain management Real time Automated Productivity Real time Real time Field Cash collection and route service sample Executive process with planning monitoring tracking tracking clients visibility Control tower Classification: Restricted 42
Slide 44: Enhanced Customer Experience in Home Collection
Enhanced Customer Experience in Home Collection Auto Routing engine to dynamically allocate Enabled Franchisees for the booking to nearest Home Collection available phlebotomist Variable model Real time slot which grows confirmation with business to patient volume Within 1 hr Automated guaranteed an
Slide 45: Key Awards & Recognition
Key Awards & Recognition CSR Award 2022 Business Standard Star GAPIO Excellence in Financial Express CFO CFO100 Roll of Dr. Om Manchanda ICICI Lombard & EY Entrepreneur SME of the year 2022 Diagnostics Award of the year 2022 Honour 2022 honoured and CNBC TV18 India of The Year 2019 2022 awarded as R
Slide 46: Contact Us
Contact Us About Dr. Lal PathLabs Limited (DLPL) 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