Krsnaa Diagnostics Limited · NSE:KRSNAA
Krsnaa Diagnostics — FY2022 Earnings Presentation
40 slides from Krsnaa Diagnostics's earnings presentation, May 31, 2022
Slide 1: Krsnaa Diagnostics filing cover letter: FY21-22 Earnings Presentation
0 Krsnad D I A G N O S T I C s ® LET'S DO GOOD... ® Date: 3i 5t May, 2022 BSE Ltd. The National Stock Exchange of India Ltd. Corporate Service Department Exchange Plaza, 3rd Floor, pt Floor, P.J. Towers, Plot No. C/1, 'G' Block, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai 400 001 Mumbai 4
Slide 2: FY2022 & Q4 Investors Presentation
One of INDIA’S LARGEST Differentiated Diagnostic FY2022 & Q4 Investors Presentation Service Provider www.krsnaadiagnostics.com
Slide 3: FY2022 and Q4 Performance
FY2022 and Q4 Performance N DE tt)
Slide 4: Strong Performance Across All Key Performance Indicators
Strong Performance Across All Key Performance Indicators 47% 101% 46 2,071 23+ Mn Revenue CAGR PAT** CAGR Receivable Days Patients Served Centres 5Y (FY17-22) 5Y (FY17-22) 31st March, 2022 Last 5 Years Rs. 455 cr FY22 Revenue 14+ 70+ 17+ Mn Rs. 133 cr | 29% States Districts Locations No. of Tests an
Slide 5: FY2022: Strong Revenue and Net Profit Growth
FY2022: Strong Revenue and Net Profit Growth Core Business Continues to Deliver Stellar Revenue Growth of 70% Y-o-Y Strong EBITDA of Rs. 133 Cr with margins of 29% and Net Profit of Rs. 68 Cr, up by 117% Y-o-Y Rs. Million Total Revenue Core Business Revenue Covid-19 Revenue +15% +70% -78% YoY 4,555
Slide 6: Q4 FY2022: Strong Net Profit Growth
Q4 FY2022: Strong Net Profit Growth In Q4 FY22, Revenue up by 13% and Net Profit up by 21%. Performance driven by Core Business EBITDA was impacted due to investment in operationalizing new centres and increase in employee cost Rs. Million Total Revenue Core Business Revenue Covid-19 Revenue +13% +2
Slide 7: Core Business Volumes Continues to Grow
Core Business Volumes Continues to Grow Tests In Million Total Number of Tests ▪ Strong tests volume growth visible in all modalities +84% YoY 17.28 ▪ Higher awareness and visibility of Krsnaa diagnostics centres ▪ High quality services at disruptive prices driving patient and 9.38 tests count +92%
Slide 8: Operational Performance Trend
Operational Performance Trend Strong Increase in Patient Count and Average Revenue Per Patient up from Pre-Covid-19 Levels Number of Patients* (in Mn) 58% Y-o-Y Tele-Reporting Patients (in Mn) 40% Y-o-Y 4.31 3.42 2.85 2.73 2.45 2.42 1.01 0.91 1.06 0.69 Q4FY21 Q4FY22 FY20 FY21 FY22 Q4FY21 Q4FY22 FY20
Slide 9: Annual Performance Trends
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Slide 10: Revenue and Profit After Tax Growth Trend
Revenue and Profit After Tax Growth Trend Revenue (in Mn) + 94% + 47% 4,555 CAGR Since Inception CAGR Last 5 Years 3,965 2,584 2,098 1,081 668 366 464 175 274 6 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Gross Profit Margin Profit After Tax* (in Mn) + 101% 684 CAGR Last 5 Years 315 125 1
Slide 11: Well Diversified Business Mix
Well Diversified Business Mix Radiology and Pathology Revenue grew by 5.5 times and 8.2 times respectively in Last 5 Years Remains one of the Fastest Growing Diagnostics Service Provider Rs. Million Radiology Revenue* Pathology Revenue excluding Covid-19 +40% 2,488 CAGR +52% CAGR 1,748 1,673 1,620 1
Slide 12: Strong Cash Collection and Cash Flow Conversion
Strong Cash Collection and Cash Flow Conversion Receivables Days EBITDA to Cash Flow Conversion* 120% 97 98 114% 116% 87 101% 69 80% 46 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 • Krsnaa has built a strong cash flow generating business model backed by strong cash flow conversion cycle and ef
Slide 13: Well Capitalized Balance Sheet to Fund the Growth
Well Capitalized Balance Sheet to Fund the Growth (Rs. Million) FY18 FY19 FY20 FY21 FY22 Long Term Debt 556 937 1,400 1,680 331 Short Term Debt 452 772 1,112 638 79 Total Debt (A-B) 1,008 1,709 2,512 2,318 410 Cash & Cash Equivalents 219 1,281 1,379 1,624 3,480 Net Debt / (Net Cash) (A-B) 789 428 1,
Slide 14: Annual Financial Performance – Delivering Consistent Growth
Annual Financial Performance – Delivering Consistent Growth Y-o-Y Growth CAGR Growth (Rs. Million) FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY21-22 FY17-22 Core Business 668 1,081 2,098 2,584 2,492 4,236 70.0% 45% Covid-19 Business - - - - 1,473 319 (78.4)% - Revenue from Operations 668 1,081 2,098
Slide 15: Quarterly Financial Performance
Quarterly Financial Performance (Rs. Million) Q4FY22 Q4FY21 Y-o-Y Growth Q3FY22 Q-o-Q Growth Core Business 1,062 830 28.1% 1,052 1.0% Covid-19 Business 20 129 (84.5)% 13 - Revenue from Operations 1,082 959 12.9% 1,065 1.7% Other Income 41 29 43.3% 43 (5.4)% Total Income 1,123 988 13.7% 1,108 1.4% EB
Slide 16: Balance Sheet
Balance Sheet Assets (In Million) FY21 FY22 Equity and Liabilities (In Million) FY21 FY22 Non-Current Assets 3,563.91 5,420.06 Total Equity 2,318.65 6,844.09 Equity share capital 64.95 156.99 Property, plant and equipment 3,072.80 3,833.79 Instruments entirely equity in nature 2,423.90 0.00 Capital
Slide 17: Business Overview
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Slide 18: Track Record of Successful Fast-Pace Expansion
Track Record of Successful Fast-Pace Expansion 2022 2021 2021 Pan India Expansion Successful 2020 Centres – 664 Listing on the States – 12 Stock Exchanges Started operating 12 2019 centres in Himachal Pradesh in public Expansion private partnership Expansion Centres – 2,000+ 2018 Centres – 1,300+ St
Slide 19: Extensive Footprint and Infrastructure
Extensive Footprint and Infrastructure Radiology Centres Tele- Pathology Labs Reporting, 8% 107 Centres 49 CT Scans and MRI Processing Labs Radiology, 47% FY2022 Pathology, 1,381 Revenue Mix 38% 534 Tele-Reporting Centres Collection Centres 1,488 583 COVID, 7% Radiology Centres Pathology Centres Not
Slide 20: Only Company with Pan India Presence in Both Radiology and Pathology
Only Company with Pan India Presence in Both Radiology and Pathology FY2022 Regional Revenue Contribution Mix 6% 10% West South 23% North 61% East High Headroom to Grow ▪ Highest penetration across districts with presence in 70+ out of 700+ districts; still large underpenetrated market ▪ Government
Slide 21: Tapping Wide Spectrum of Market Unaddressed by Peers
Tapping Wide Spectrum of Market Unaddressed by Peers Krsnaa Remains Fastest Growing Diagnostic Service Provider and Continues to Tap Wide Spectrum of Underpenetrated Market Krsnaa is the Only Listed Company with Well Diversified Business Mix of Radiology and Pathology Rural Minimal Competition from
Slide 22: High Quality Diagnostic Services at Disruptive Prices
High Quality Diagnostic Services at Disruptive Prices Krsnaa Offers Tests at 45-60% Lower than Market Rates % from min Segment Test Player 1 Player 2 Player 3 Krsnaa price RDL CT Brain 4,500 4,500 3,500 2,000 (43%) RDL MRI Brain 8,000 8,250 7,000 3,500 (50%) Krsnaa Diagnostics offers high quality PT
Slide 23: India's Largest Tele-Radiology Reporting Hub
India’s Largest Tele-Radiology Reporting 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 con
Slide 24: Krsnaa Competitive Advantages
Krsnaa Competitive Advantages Sustainable business model backed by underlying competitive advantages and well positioned to drive growth Revenue Visibility 1 ▪ Long-term of contracts (between 5-10 years) with inbuilt price escalation mechanism ensures higher and consistent visibility of revenues ▪ G
Slide 25: Strategic Pillars of Growth
Strategic Pillars of Growth 24
Slide 26: Growth Strategy
Growth Strategy Target is to achieve 2x growth in Revenues and 3x growth in Profits by end of FY2024 Tap the growing and underpenetrated diagnostic market by participating in new PPP tender Focus on timely and successful implementation of new projects Enhanced centre profitability with the maturing
Slide 27: Tapping PPP Opportunity
Tapping PPP Opportunity (Projects Other than Mentioned in RHP) Krsnaa has recently won 3 PPP contracts to deploy 8 CT, 1 MRI with duration of 10 years Establish 24 Pathology and 190 Collection centres with duration of 5 years Uttar Pradesh Radiology Contract Chandigarh Radiology Contract ▪ UP Govern
Slide 28: Projects Mentioned in RHP: Implementation on Track
Projects Mentioned in RHP: Implementation on Track Radiology Centres Growth To be Operational Construction Construction State Total Centres Operationalized in Till March 22 Completed WIP Q1 FY23 Punjab 25 9 7 8 1 MCGM Mumbai 3 1 1 - 1 Himachal Pradesh 2 2 - - - Karnataka 2 1 - - 1 Somaiya Hospital M
Slide 29: Projects Mentioned in RHP: Implementation on Track
Projects Mentioned in RHP: Implementation on Track High quality infrastructure and services at disruptive prices creates market awareness and drives direct walk-ins Branding at Centres Branding at Centres World Class Infrastructure Strong Support from All Stakeholders 28
Slide 30: Centers Maturity Profile
Centers Maturity Profile Krsnaa Younger Portfolio Continues to Mature with Promising Future 64% 33% 20% 11% Gross Block* ROCE 16% -10% Gross Block* ROCE Gross Block* ROCE Matured Semi-Matured Newly Launched ▪ Expand B2C share of Business ▪ Increase awareness and visibility through digital marketing
Slide 31: Fully Geared to Disrupt the Growing Retail Market
Fully Geared to Disrupt the Growing Retail Market Retail Market Expansion Strategy Launch of specialized tests- Genomics Pathology Awareness through Tele Pick-Up-Points reporting (Camps and Corporates, Wellness & Krsnaa (Nursing Homes, Hospitals, small and mid- support – For Illness Packages) Busine
Slide 32: Expanding B2C Pathology Service Offerings
Expanding B2C Pathology Service Offerings Capitalizing on the extensive infrastructure of Pathology Diagnostics and extending it to end consumers 583 Pathology Centres 49 534 Processing Labs Collection Centres ▪ Expanding B2C pathology diagnostic service offerings at disruptive prices in 5 states ▪
Slide 33: Digital Initiatives
Digital Initiatives Enhancing Visibility, Awareness and Convenience Through Digital Initiatives Re-Launch Mobile Application Social Media Engagement ▪ Digitalize reports and provide Smart Health Reports ▪ Organize social media engagement campaigns on with next steps and recommendations health awaren
Slide 34: Enhancing Visibility and Awareness
Enhancing Visibility and Awareness 33
Slide 35: Experienced Leadership Team
Experienced Leadership Team Rajendra Mutha Executive Chairman Pallavi Bhatevara, Yash Mutha Dr. Ravinder Sethi Managing Director Whole Time Director Chief Operating Officer • 10+ years of experience in the • 8 years of experience in the • 12+ years of experience in the • 24+ years of experience in t
Slide 36: Board of Directors – Diversified Experience and Background
Board of Directors – Diversified Experience and Background Chetan Desai Chhaya Palrecha Rajiva Ranjan Verma Independent Director Independent Director Independent Director • Practicing Chartered Accountant with a wide- • Chartered Accountant with 24 years of experience • Superannuated as Director Gen
Slide 37: 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 38: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on 31st March, 2022 Top Institutional Shareholders – 31st March, 2022 % Holding Others, Promoters, Aditya Birla Sun Life 3.7% 23.80% 27.38% Tata AIA Life Insurance 3.7% Tata Mutual Fund 3.2% ICICI Prudential Pharma Healthcare 3.1% QIB, 11.50% HDFC Life In
Slide 39: Factsheet
Factsheet Key Valuation Metrics 27-May-22 47% 101% NSE Ticker KRSNAA Revenue CAGR PAT CAGR BSE Ticker 543328 5Y (FY17-22) 5Y (FY17-22) Share Price (in Rs) 523 Number. of Shares ( in Cr) 3.14 45% 52% Equity Value (Rs. Cr) 1,642 Radiology Revenue Pathology Revenue Gross Borrowings (Rs. Cr) – 31 March,
Slide 40: 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