Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — H1 FY17 Earnings Presentation
27 slides from Dr. Lal Pathlabs's earnings presentation, November 2016
Slide 1: Dr. Lal PathLabs Limited Corporate Presentation
Dr. Lal PathLabs Limited Corporate Presentation November 2016
Slide 2: Table of Contents
2 Table of Contents 1 Our Evolution 2 Dr Lal PathLabs at a glance 3 Experienced Management team 4 Investment Highlights 5 Key Q2 & H1 FY17 Highlights 6 Q2 & H1 FY17 Financial Performance 7 LPL Strategy for future growth 8 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statemen
Slide 3: Our Evolution
3 Our Evolution 1949 – 2005 2005 – 2010 2010 – 2016 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 4: Dr. Lal PathLabs at a glance
4 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),1,559 Patient Bio-chemistry Molecular Service Centers (PSCs)
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
6 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 7: Indian Healthcare Services is a large growth opportunity
7 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 he
Slide 8: Growth Drivers
8 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 preventiv
Slide 9: Diagnostic Services industry remains highly fragmented
9 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 Indu
Slide 10: Pillars of a Strong Brand
10 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 11: Hub and Spoke Model Network Expansion
11 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 Lab Lab 1,559 172 1,340 5,668 164 PSC PSC PSC PSC 4,967 1,064 4,225 146 824 2,8
Slide 12: Integrated National Network backed by Centralized IT platform
12 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 13: Collection network
13 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 14: Attractive operating metrics
14 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 15: Multiple levers in place to drive next phase of growth
15 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 16: Strategies to deepen our presence
16 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 17: Robust financial performance
17 Robust financial performance Total Revenue Revenue by Geography (FY16) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West Int’l Before ESOP 27.6% 27.9% 27.6% 26.7% South India 1% charge1 India 7% 7% PAT Margin 12.2% 14.3% 14.3% 16.8% East India RONW 34.3% 34.7% 33.8%
Slide 18: Robust financial performance (Cont'd)
18 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 2945 3.4x 643 3.3x 3.3x 1861 3.1x 379 1143 86 2,302 763 1,482 1,057 548 215 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Cash and Bank Current Balance Investments Self funded growth on account of s
Slide 19: Key Q2 & H1 FY17 Highlights
19 Key Q2 & H1 FY17 Highlights Performance gains driven by growth in volumes, seasonal factors, higher realization per patient, upward price revision and improved operational leverage During Q2 FY17 LPL : Revenues grew 21.5% at Rs. 2,621.7 mn from Rs. 2,157.3 mn. Price revision contributed 2
Slide 20: Q2 & H1 FY17 Financial Performance
20 Q2 & H1 FY17 Financial Performance Particulars (Rs. mn) Q2 FY17 Q2 FY16 Growth % H1 FY17 H1 FY16 Growth % Revenues 2,621.7 2,157.3 21.5% 4,850.1 4,050.4 19.7% Total Expenditure 1,823.5 1,794.1 1.6% 3,447.9 3,195.1 7.9% ESOP - 216.6 - - 239.1 - EBITDA (excl ESOP) 798.2 579.8 37.7% 1,402.2 1,094.4
Slide 21: Financial Highlights
Financial Highlights Revenues All figures in Rs mn 2,622 2,157 2,228 1,893 1,886 1,977 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q2 FY17 revenues increased 22% on the basis of improved volumes and benefit of better realizations; 13.6% higher sample volumes in Q2 was the result of: 2,622 4,850 o
Slide 22: Financial Highlights
Financial Highlights All figures in Rs mn EBITDA (excl ESOP) 1,402 EBITDA (excl ESOP) stood 38% higher 798 1,094 with corresponding EBITDA Margins at 580 30.4% during Q2 FY17 This EBITDA growth was favourably impacted by seasonal fevers, price increase and operating leverage Q2FY16 Q2FY17 H1 FY1
Slide 23: LPL Strategy for future growth
23 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 24: Annexures
Annexures • IPO transaction • Present Shareholding
Slide 25: IPO transaction
25 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 Tot
Slide 26: Shareholding as on Sep 30, 2016
26 Shareholding as on Sep 30, 2016 58.6% Promoters 1.9% MFs FPIs & FIIs FI/Banks Other Public Employee Trust 26.3% 5.1% 8.1% 0.02%
Slide 27: Contact us
27 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