Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Investor Presentation (February 2018)
34 slides from Dr. Lal Pathlabs's investor presentation, February 2018
Slide 1: Dr. Lal PathLabs Limited Corporate Presentation
Dr. Lal PathLabs Limited Corporate Presentation February 2018
Slide 2: 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 3: Table of Contents
3 Table of Contents 1 Company Overview 2 Investment Highlights 3 Q3 & 9M FY18 Highlights & Financial Performance 4 LPL Strategy for future growth 5 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undeterm
Slide 4: Company Overview
Company Overview • Our Evolution • Dr. Lal PathLabs at a glance • Experienced Management team
Slide 5: Our Evolution
5 Our Evolution 1949 – 2005 2005 – 2010 2010 – 2018 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major S. 2005: onwards: Investment Investment by TA Associates K. Lal by WestBridge Capital Clinical la
Slide 6: Dr. Lal PathLabs at a glance
6 Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 189 clinical labs (including National Reference Lab1 at Delhi),1,759 Patient Bio-chemistry Molecular Service Centers (PSCs)
Slide 7: Experienced Management team
7 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 Bharath Uppiliappan Shankha Banerjee Chief Financial Officer Chief Operating Officer Chief Growt
Slide 8: Investment Highlights
Investment Highlights
Slide 9: Investment Highlights
9 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 m
Slide 10: Indian Healthcare Services is a large growth opportunity
10 Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2026 India, highly underpenetrated market 7.6% GDP growth in FY161 INR 4.2 trillion Total Healthcare Expenditure as % of GDP (2013) FY14 India healthcare expenditure 17.1% ~68% Private expenditure on h
Slide 11: Growth Drivers
11 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% 1 Increase in evidence-based INR 377 bn treatments 2 Demand for lifestyle diseases- related services to grow 2014–15 2017–18P 3 Focus on preventi
Slide 12: Diagnostic Services industry remains highly fragmented
12 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 Ind
Slide 13: Established consumer healthcare brand in Diagnostic Services
13 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 Centrall
Slide 14: Hub and Spoke Model Network Expansion
14 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 5,668 1,759 189 5,021 4,967 1,559 Clinical Clinical 172 Lab Lab 164 1,340 4,225 146 1,064 PSC PSC
Slide 15: Integrated National Network backed by Centralized IT platform
15 Scalable Model integrated through centralized IT platform allows for network expansion Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource Payables, receivables, inventory, ledgers etc. Planning (ERP) Scalability and connectivity
Slide 16: Collection network
16 Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab Clinical Labs (Testing/Collection) Patient Service Centers Pickup Points Home Walk-ins Collection Hospitals Doctors Labs Walk-ins Diverse, large customer pool W
Slide 17: Attractive operating metrics
17 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 Hig
Slide 18: Multiple levers in place to drive next phase of growth
18 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 Deepen presence in North M&A provides growth kicker Increase exis
Slide 19: Strategies to deepen our presence
19 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 bot
Slide 20: Robust financial performance
20 Robust financial performance Total Revenue Revenue by Geography (FY17) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West India, Others, Before ESOP 27.6% 27.3% 26.7% 27.0% 7.6% 1.2% charge1 South India, 6.7% PAT Margin 14.4% 14.6% 16.8% 17.0% RONW 40.8% 33.7% 31.4%
Slide 21: Robust financial performance (Cont'd)
21 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 3.6x 1,143 1,861 2,945 3,882 4,903 3,568 3.4x 3.3x 3.3x 2,836 2,302 1,482 1335 1,057 1046 643 379 86 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 9M FY18 Cash and Bank Current Balance Investments S
Slide 22: Q3 & 9M FY18 Highlights & Financial Performance
Q3 & 9M FY18 Highlights & Financial Performance
Slide 23: Q3 FY18 Snapshot
Q3 FY18 Snapshot 26.6% Revenues INR 2,627 mn Samples Processed ~8.69 mn 20.2% EBITDA INR 566 mn Patients Tested ~3.82 mn 17.7% PAT INR 364 mn Total Employees ~4,326 23
Slide 24: Kolkata Regional Reference Lab
Kolkata Regional Reference Lab Pilot testing operations commenced at the Regional Reference Laboratory at Kolkata Kolkata Reference Lab received final regulatory clearances and pilot testing operations have commenced. The World-class Lab will cater the demand from Northeast as well as Eastern region
Slide 25: Key Performance Highlights
Key Performance Highlights Strong volume momentum achieved in Q3 expected to continue; captures growth in patient volumes and tests per patient. Initiatives to mitigate impact from GST, market pricing pressures and wage corrections supporting margins During Q3 FY18: • Recorded revenues of Rs. 2,627
Slide 26: Financial Table
Financial Table Growth Growth Particulars (Rs. mn) Q3 FY18 Q3 FY17 9M FY18 9M FY17 FY17 % % Total Revenue 2,627.0 2,074.6 26.6% 7,900.6 6,924.7 14.1% 9,123.8 Total Expenditure 2,061.0 1,603.6 5,901.0 5,048.3 6,749.2 EBITDA 566.0 471.1 20.2% 1,999.6 1,876.4 6.6% 2,374.6 RSU and stock based 29.9 15.6
Slide 27: Financial Highlights
Financial Highlights Revenues All figures in Rs. mn 2,627 Q3 showed strong growth in Realisation per patient has 2,075 revenues at 26.6% to Rs. 2,627 stood stable at Rs. 688 owing million. Drivers during the quarter to price rationalisations were: undertaken during the year in • Expansion in pat
Slide 28: Financial Highlights
Financial Highlights All figures in Rs. mn Normalised EBITDA (after eliminating the impact of RSU and other stock based remuneration charges) 596 Q3 normalised EBITDA (after Pressures from GST, correction 487 eliminating the impact of RSU and in minimum wages and market other stock based remuner
Slide 29: Financial Highlights
Financial Highlights PBT All figures in Rs. mn 555 472 Q3 PBT stood at Rs. 555.0 million Q3 PAT stood at Rs. 364.0 in vs. Rs. 472.0 million in same million vs Rs 309.3 million in quarter last year Q3 previously Q3 FY17 Q3 FY18 1,880 1,993 9M PBT rose 6% to Rs. 1,993.4 9M PAT increased 6.7% t
Slide 30: LPL Strategy for future growth
LPL Strategy for future growth
Slide 31: LPL Strategy for future growth
31 LPL Strategy for future growth 1 Strengthen Existing Operations Boosting quality & Improving Grow basic Online initiatives Investment in reliability turnaround times radiology practice and data analytics branding standards for testing 2 Expansion in Offering Improve breadth Preventive Chronic & L
Slide 32: Annexures
Annexures • Shareholding as of 31st December, 2017
Slide 33: Shareholding as of 31st December, 2017
Shareholding as of 31st December, 2017 57.4% 12.5% 10.5% 0.3% 19.3% Promoter and Mutual FII DII Others Promoter Fund Group 33
Slide 34: Contact us
Contact us About Dr Lal PathLabs Limited (DLPL) For further information please contact: Dr Lal PathLabs Limited is one of India’s leading consumer healthcare brand in diagnostic services. Dilip Bidani It has an integrated nationwide network, where patients Dr. Lal PathLabs Limited and healthcare pro
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