Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Investor Presentation (May 2019)
32 slides from Dr. Lal Pathlabs's investor presentation, May 2019
Slide 1: Dr. Lal PathLabs Limited Corporate Presentation
Dr. Lal PathLabs Limited Corporate Presentation May 2019
Slide 2: Disclaimer
2 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 present
Slide 3: Table of Contents
3 Table of Contents 1 Company overview 2 Investment highlights 3 Q4 & FY19 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 undetermine
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 – 2019 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major 2005: onwards: Investment Investment by TA Associates S. 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 200 clinical labs (including National Reference Lab1 at Delhi and Regional Bio-chemistry Molecular Ref Lab at Kolkata), 2,5
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 Ved Prakash Goel Bharath Uppiliappan Shankha Banerjee Chief Financial Officer CEO India Business Chief Growth
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 2022 India, highly underpenetrated market USD 2,483 bn India GDP in FY201 Total Healthcare Expenditure as % of GDP (2015) 16.8% USD 273 billion 11.2% FY20 India healthcare expenditure 8.9% 8.2% 5.6% 5.
Slide 11: Diagnostic Services industry expected to grow to INR 802 bn by FY20
11 INR 596 bn Diagnostic Services industry expected to grow to INR 802 bn by FY20 Diagnostic Services Industry Size CAGR:16% INR 802.1 bn Growth Drivers INR 596.1bn 1 Increase in evidence-based treatments 2 Demand for lifestyle diseases- related services to grow 2017-18E 2019-20P 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: Scalable Model: 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 Laboratories Reference 189 193 200 Lab Clinical Clinical Lab Lab No. of PSCs FY17 FY18 FY19 2,569 PSC PSC PSC PSC 2,153 1,759 • Centralized diagnost
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 & Regional Ref. Lab Clinical Labs (Testing/Collection) Patient Service Centers Pickup Points Home Walk-ins Collection Hospitals Doctors Labs Walk-ins Diverse, lar
Slide 17: Attractive operating metrics
17 Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn) FY19 Revenues increased on Consumer brand and network account of : Increase in samples with patient Marked gains in patient expansion driving patient volumes growth volumes at 15.3% volumes Incr
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 M&A provides growth kicker Increase existing tie-ups Deepen prese
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 management home services services. Bundling of tests col
Slide 20: Robust financial performance
20 Robust financial performance Total Revenue Revenue by Geography (FY19) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) West India, Others, 2% EBITDA Margin 7% Before ESOP &CSR 26.7% 27.2% 26.3% 26% South India, charge1 6% PAT Margin 16.8% 17.1% 16.3% 16.7% CAGR: 16.2% RONW 31.4% 29.
Slide 21: Robust financial performance (Cont'd)
21 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 8.5x 3,882 5,506 7,077 7.5x 5,229 6.6x 4,058 2,836 1,848 1,448 1,046 FY17 FY18 FY19 FY17 FY18 FY19 Cash and Bank Balance Current Investments Self funded growth on account of strong cash flow g
Slide 22: Q4 & FY19 Highlights & Financial Performance
Q4 & FY19 Highlights & Financial Performance
Slide 23: Q4 FY19 Snapshot
Q4 FY19 Snapshot 3,011 mn ~10.6 mn 12.9% Samples Revenues INR Processed 729 mn ~4.32 mn 6.0% Patients Normalised INR Tested EBITDA 474 mn ~4,405 17.9% PAT INR Total Employees* *As on March 31, 2019 3
Slide 24: Key Performance Highlights
Key Performance Highlights Consistent growth in patient volumes for Q4 at 12.5% driving revenue growth for the quarter During Q4 FY19: • Revenues gained 12.9% YoY to Rs 3,011 million • Number of patients tested stood at 4.32 million in Q4 • Normalised EBITDA (after eliminating the impact of stock ba
Slide 25: Financial Table
Financial Table Particulars (Rs. mn) Q4 FY19 Q4 FY18 Growth % FY19 FY18 Growth % Revenue 3,011 2,668 12.9% 12,034 10,569 13.9% Expenditure 2,349 2,028 9,098 7,929 EBITDA 662 640 3.4% 2,936 2,640 11.2% Adj for stock based comp. & CSR Cost 67 48 196 143 Normalised operating EBITDA 729 688 6.0% 3,132 2
Slide 26: Financial Highlights
Financial Highlights Revenues All figures in Rs. mn Q4 saw 12.9% improvement in revenues at Rs. 3,011 million. This was the result of: 12,034 3,011 10,569 • Consistent momentum in volumes with 2,668 12.5 % growth • Gains in tests per patient from 2.3 to 2.5 Q4FY19 realisation per patient stood a
Slide 27: Financial Highlights
Financial Highlights PBT All figures in Rs. mn Q4 PBT was at Rs. 692 million vs. Rs. 3,006 620 million last year 692 2,613 620 Q4 PBT margin was at 23% from 23.2% last year FY 19 PBT came in at Rs. 3,006 million with margins of 25% Q4 FY18 Q4 FY19 FY18 FY19 PAT Q4 PAT came in at Rs. 474 mill
Slide 28: LPL Strategy for future growth
LPL Strategy for future growth
Slide 29: DLPL Strategy for future growth
29 DLPL 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 &
Slide 30: Annexures
Annexures • Shareholding as of 31st March, 2019
Slide 31: Shareholding as of 31st Mar, 2019
Shareholding as of 31st Mar, 2019 56.9% 8.4% Promoter and Promoter Mutual Group Funds* 17.7% 17.0% FII Others *Mutual Funds includes Alternate Investment Funds as well 31
Slide 32: 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. Ved Goel / Rajat Kalra It has an integrated nationwide network, where patients Dr. Lal PathLabs Limited and heal