Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q3 FY2024 Earnings Presentation
33 slides from Metropolis Healthcare's earnings presentation, Feb 2, 2024
Slide 1: Intimation of Investor Presentation to Stock Exchanges
Ref: MHL/Sec&Legal/2023-24/84 Date: February 02, 2024 To, To, Head, Listing Compliance Department Head, Listing Compliance Department, BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1. G Block, Dalal Street, Mumbai – 400 001. Bandra – Kurl
Slide 2: Reaching Out Responsibly - Investor Presentation February 2024
Reaching Out RESPONSIBLY Investor Presentation – February 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Metropolis Healthcare Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Q3FY24 Performance
Q3FY24 Performance...
Slide 5: Q3FY24 Performance Snapshot
Q3FY24 Performance Snapshot Total Revenue Core Business* Revenue Rs. 291 Crores Rs. 286 Crores 2% YoY 12% YoY Core Business* Patient Vol. Core Business* RPP 2.83 Mn Rs. 1,009 9% YoY 3% YoY Core Business* Test Vol. Core Business* RPT 5.81 Mn Rs 492 11% YoY 1% YoY EBITDA Margin Reported EBITDA Margin^
Slide 6: 9MFY24 Performance Snapshot
9MFY24 Performance Snapshot Total Revenue Core Business* Revenue Rs. 877 Crores Rs. 858 Crores 1% YoY 13% YoY Core Business* Patient Vol. Core Business* RPP 8.62 Mn Rs. 996 9% YoY 3% YoY Core Business* Test Vol. Core Business* RPT 17.4 Mn Rs 493 9% YoY 3% YoY EBITDA Margin Reported EBITDA Margin^ (B
Slide 7: Q3FY24 Key Highlights
Q3FY24 Key Highlights Core business revenues grew at 12% with 9% Patient volume growth and 3% RPP Core Business* Revenue grew at 12% 01 growth. 11% on account of Test volume & 1% on account of RPT. Revenue were impacted to the tune of 1% on account of floods in Chennai in Q3FY24. B2C revenues grew b
Slide 8: Core Business Revenue continues to grow by double digit
1a. Core Business Revenue continue to grow by double digit.. Core Business PPP Contracts Covid PCR & Covid Allied Total Revenues (incl. Hi-Tech) One of the large PPP Contract ended on 8th February 2023 +13% -59% 1% 858 65 39 866 877 762 12% 2% 16 286 23 285 291 254 -31% 8 5 0 2 Q3FY23 Q3FY24 9MFY23
Slide 9: Growth driven by Patient Volume 9% and RPP 3%
1b. …predominantly by Patient Volume growth @ 9% & RPP growth @ 3% Core Business No. of Patient Visits (In Mn.) Core Business Revenue Per Patient (In Rs.) +9.4% +3.1% +3.1% 7.9 8.6 979 1,009 966 996 +9.0% 2.6 2.8 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Core Business No. of Tests (In
Slide 10: B2C revenue grew by 15%
2. B2C revenue grew by 15% & B2C revenue in Mumbai grew by 18% Revenue Mix Across Segments B2C Revenue (Rs. Crs) B2C contributes 53% of the total revenue 15.3% 19% 12% B2C revenues grew by 15% Y-o-Y with Volume 151 131 47% growth of 13% & RPP growth of 2% Q3FY23 Q3FY24 53% 35% 34% B2C revenue in Mum
Slide 11: B2B revenue grew by 7%
3. B2B revenue grew by 7% & B2B Specialized revenue grew by 9% Revenue Mix Across Segments B2B Revenue Mix (Rs. Crs) +7.1% 19% 12% B2B contributes 35% of revenues for Q3FY24 100 93 Q3FY23 47% Q3FY24 53% B2B revenues grew by 7% for Q3FY24 Y-o-Y with 35% Volume growth of 5% & RPP growth of 2% 34% Q3FY
Slide 12: Premium Wellness revenue grew 15%
4a. Premium Wellness revenue grew @ 15% with 11% volume growth Population for Diagnostic Industry Total Premium Wellness Revenue +22% 6% 124 94% 102 15% 36 42 Wellness Population Illness Population Q3FY23 Q3FY24 9MFY23 9MFY24 ✓ Revenue from Premium Wellness has grown by 15% on Y-o-Y Our focus is to
Slide 13: Specialized Test revenue grew 13%
4b. Specialized Test revenue grew @ 13% with 11% volume growth Offers more than 3,000 Innovation & test menu Divided over multiple specialized tests and uniquely expansion is the heart of specialty 77 tests added in specialized subspecialty segments crafted profiles to meet diagnostic & each year Ne
Slide 14: Expanding Network from 307 to 595 towns in last 9 months
5a. Expanding Network…from 307 to 595 towns in last 9 months Laboratory Network - MHL Service Network - MHL Hitech Network Total Network Rationalization Hi-Tech Labs + 17 labs 452 centres Period Lab network Service network Labs Hi-tech Centers 4,127 Total 192 Total 4,127 192 ARC 175 3,675 115 20 Thi
Slide 15: Network expansion with focus on company-level margins in 2 years
5b. …with focus on achieving company level margins in 2 years Network Expansion*^ Lab Maturity Cycle 51 labs EBIDTA Margin Period 172 Profile 155 141 119 124 125 0-12 months -5% to -15% FY19 FY20 FY21 FY22 FY23 9MFY24 12-18 months Nil to 5% Labs Added NA 5 1 16 14 17 18-24 months 5% to 15% EBIDTA NA
Slide 16: Reported EBIDTA Margins at 22.5%
6. Reported EBIDTA Margins @ 22.5% EBIDTA dilution on account of Network Expansion in Q3FY24 @1.2% EBIDTA dilution on account of Network Expansion in Q3FY23 @0.8% Net impact on account of dilution 0.4% 25.5% -0.4% -1.4% -0.8% 22.5% -0.4% Q3FY23 Reported EBIDTA Dilution on account Dilution on account
Slide 17: Creating a Digital Transformation for business to grow
7. Creating a Digital Transformation for business to grow Enhanced Rapid Second generation Productivity Scalability Community Cloud for better Point of Sale Platform Registration and life-cycle management Invoicing Platform 2.0 Sales CRM with Customer Data customizable Platform enabling CPQ to manag
Slide 18: Specialized and Premium Wellness revenue contribution continues to grow
Specialized and Premium Wellness revenue contribution continues to grow Strong Brand Equity across markets & Doctors Trust and Reliance on Metropolis helps us grow our Specialized & Premium Wellness segment faster than the Industry Q3FY23 Q3FY24 Specialized (Rs. Crs) Premium Wellness (Rs. Crs) Core
Slide 19: Diversified Revenue contribution across Geographies
Diversified Revenue contribution across Geographies Continue to focus on strengthening the Brand in Focus cities through increase in B2C share while improving the share of Seeding and Other cities through a healthy mix of B2B and B2C driven by large Test menu Q3FY23 Q3FY24 Q3FY23 Q3FY24 Core Busines
Slide 20: Q3 & 9MFY24 Consolidated Profit & Loss Statement
Q3 & 9MFY24 Consolidated Profit & Loss Statement Profit & Loss Statement (Rs. Crs.) Q3FY24 Q3FY23 Y-o-Y 9MFY24 9MFY23 Y-o-Y Revenue from Operations 291.1 285.5 2.0% 876.7 865.7 1.3% Cost of operations 222.5 208.2 663.4 633.8 EBIDTA (before CSR and ESOP) 68.6 77.2 -11.2% 213.3 231.9 -8.0% EBIDTA (bef
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-23 Mar-23 Equity & Liabilities (Rs. Crs.) Sep-23 Mar-23 Non-current assets 1206.4 1198.8 Equity 1049.4 990.8 Property, Plant and Equipment 145.0 137.2 Equity Share capital 10.2 10.2 ROU Assets 171.6 173.4 Other equity 1036.3 978.0 Goodwill 454.7 454.7
Slide 22: Consolidated Abridged Cash flow statement
Consolidated Abridged Cash flow statement Cash Flow Statement (Rs. Crs) H1FY24 H1FY23 Profit Before Tax 87.3 97.6 Adjustments for Depreciation and other items 60.1 52.6 Operating profit before working capital changes 147.4 150.3 Changes in working capital -16.7 19.7 Cash generated from operations 13
Slide 23: Steady Focus on Balance Sheet continues
Steady Focus on Balance Sheet continues Debtor Days Working Capital Days 31 32 Key Highlights 17 14 ✓ Debtor days as on Dec-23 stood at 32 days as compared to 31 days as on Mar-23 ✓ Cash & Cash Equivalents stood healthy at Mar-23 Dec-23 Rs. 89 crs as of Dec-23 Mar-23 Dec-23 OCF to EBIDTA Cash and Ca
Slide 24: Metropolis 3.0: Opportunity
Metropolis 3.o : Opportunity
Slide 25: Key Pillars of Metropolis 3.0 Strategy
Key Pillars of Metropolis 3.0 Strategy 01. Strengthening the core 02. Expanding to adjacencies Increase market share in the core geographies with Expanding into adjacencies like basic radiology and expanding presence and penetration in newer allied services geographies with Focus on Specialised & We
Slide 26: Addressable market expected to increase to ~Rs. 21K Cr by FY26
Addressable market is expected to increase to ~Rs. 21K Cr by FY26… Addressable market size FY23 FY26 CAGR ~INR 101K Cr ~INR 134K Cr 10% Radiology: ~INR 43K Cr Radiology: ~INR 58K Cr Radiology: 10% Indian diagnostics market Pathology: ~INR 76K Cr Pathology: 10% Pathology: ~INR 58K Cr ~INR 58K Cr ~INR
Slide 27: Metropolis to grow faster than the Industry
…Metropolis to grow faster than the Industry Strategy to Win Higher reliability of the Metropolis Brand with Specialized Doctor Network Large Network (including current expansion) to Increase the product suite for Premium help grow faster in Focus Cities and strengthen Wellness and create a sticky c
Slide 28: International business
International business Our International Presence B2B Locations Kenya Zambia Ghana Tanzania Uganda via Franchisee Year of Inception Year of Inception Year of Inception Year of Inception Year of Inception 2013 2015 2014 2018 2022 Samples brought at GRL from 9 6 4 3 1 10+ Countries Labs/Diagnostics La
Slide 29: Metropolis – Certified Great Place to Work
Metropolis – Certified Great Place to Work Metropolis is the First Indian Diagnostic Organization for getting Great Place To Work certification. EMPLOYEE BRAND- Our Identity Attributes that Build Our Culture Trust, Openness, Innovation, Compassion & Growth Mindset Communicate Amplify with Talent Com
Slide 30: Metropolis ESG Goals
Metropolis ESG’ Goals Well identified ESG Focus Areas and assessments are Emission Goals for a Greener Tomorrow created as per the materiality matrix based on the GRI, SASB and SDG Frameworks. Our first Business • Carbon Neutrality by 2043 Responsibility Sustainability Report (BRSR) released as • 45
Slide 31: Key ESG Initiatives 2023-24
Key ESG Initiatives 2023-24 Emissions & Energy Occupational Employee Health & Safety Quality of Care and Patient Satisfaction • Utilize renewable energy sources (solar, wind, energy • Partner with educational institutes, establish OHS • Actively conduct NPS surveys aiming for a consistent saver kits
Slide 32: CSR at Metropolis
CSR at Metropolis Too Shy to Ask (TSTA) MedEngage Preventive health Care Project DSEU*( Delhi Skills Outreach and Digital Program Programme Entrepreneurial University) • Metropolis Foundation, the CSR • The MedEngage outreach • 1702 TB patients were supported • 7 labs fully made functional in arm of
Slide 33: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Rakesh Agarwal - CFO Mr. Shogun Jain / Mr. Sagar Shroff Email Id – rakesh.agarwal@metropolisindi
Metropolis Healthcare — Q3 FY2024 Earnings Presentation on 6ix