Krsnaa Diagnostics Limited · NSE:KRSNAA
Krsnaa Diagnostics — Q1 FY2023 Earnings Presentation
42 slides from Krsnaa Diagnostics's earnings presentation, August 2022
Slide 1: Q1 FY2023 Investors Presentation
One of INDIA’S LARGEST Differentiated Diagnostic Q1 FY2023 Investors Presentation Service Provider www.krsnaadiagnostics.com
Slide 2: Q1 FY2023 Performance
Q1 FY2023 Performance py ADDDD:)
Slide 3: Q1 FY2023 – Tender Wins
Q1 FY2023 – Tender Wins Maharashtra – Radiology Contract Rajasthan – Radiology Contract Commissionerate of Health Rajasthan Medical Education Authority Services Government of Authority Society (Directorate of Medical Total Assets to be Maharashtra Education), Government of Rajasthan Deployed* Servic
Slide 4: Core Business Continues to Grow
Core Business Continues to Grow In Q1 FY23, Core Revenue up by 10.5% y-o-y despite high base in Q1 FY22 due to second wave of Covid-19 EBITDA margins remained strong at 25.1% and improvement is expected from upcoming quarters with operationalization of new centres Rs. Million Total Revenue Core Busi
Slide 5: Core Business Volumes Continues to Grow
Core Business Volumes Continues to Grow Tests In Million Total Number of Tests ▪ Tests volume growth visible in all modalities led by sharp 5.42 4.78 increase in Tele-reporting tests 3.60 ▪ Higher awareness and visibility of Krsnaa’s diagnostics centres ▪ High quality services at disruptive prices d
Slide 6: Management Perspective
Management Perspective Commenting on the business, Ms. Pallavi Commenting on the results, Mr. Yash Mutha, Bhatevara, Managing Director, said: Executive Director, said: “Krsnaa diagnostics started a new fiscal year on a “During the first quarter, Krsnaa registered Core strong note with 4 new tender w
Slide 7: Operational Performance Trend
Operational Performance Trend Krsnaa continues to deliver Q-o-Q growth on key operational parameters Number of Patients* (in Mn) 4.3% Q-o-Q Tele-Reporting Patients (in Mn) 24.2% Q-o-Q 1.32 1.32 1.01 1.05 1.06 0.56 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Average Revenue Per Patient** (in Rs) 0.1% Q
Slide 8: Quarterly Financial Performance
Quarterly Financial Performance (Rs. Million) Q1FY23 Q1FY22 Y-o-Y Growth Q4FY22 Q-o-Q Growth Core Business 1,126 1,019 10.5% 1,062 5.9% Covid-19 Business1 3 306 (99.0)% 20 (85.1)% Revenue from Operations 1,129 1,325 (14.8)% 1,082 4.3% Other Income 46 32 43.3% 41 13.3% Total Income 1,175 1,357 (13.4)
Slide 9: Business Overview
Business Overview py ADDDD:)
Slide 10: 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 11: Extensive Footprint and Infrastructure
Extensive Footprint and Infrastructure Radiology Centres Pathology Labs COVID, 0% 113 Centres 52 CT Scans and MRI Processing Labs Pathology, 38% Q1 FY2023 Radiology, 1,439 52% Revenue Mix 561 Tele-Reporting Centres Collection Centres Tele- Reporting, 1,552 10% 613 Radiology Centres Pathology Centres
Slide 12: 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 13: 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 14: 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 15: 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 16: 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 17: Strategic Pillars of Growth
Strategic Pillars of Growth 17
Slide 18: 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 19: Tapping PPP Opportunity (Projects Other than Mentioned in RHP)
Tapping PPP Opportunity (Projects Other than Mentioned in RHP) Assets to be Deployed 7 41 2 24 | 190 States CT Scan MRI Scan Labs | Collection Centers Maharashtra Radiology Contract Tripura X-Ray Tele-Reporting Contract Chandigarh Radiology Contract ▪ Awarded by Commissionerate Government of ▪ Award
Slide 20: 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 June 22 Completed WIP Q2 FY23 Punjab 25 15 4 6 0 MCGM Mumbai 3 1 1 0 1 Himachal Pradesh 2 2 0 0 0 Karnataka 2 1 0 0 1 Somaiya Hospital M
Slide 21: 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 21
Slide 22: 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 23: 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 24: Expanding B2C Pathology Service Offerings
Expanding B2C Pathology Service Offerings Capitalizing on the extensive infrastructure of Pathology Diagnostics and extending it to end consumers 613 Pathology Centres 52 561 Processing Labs Collection Centres ▪ Expanding B2C pathology diagnostic service offerings at disruptive prices in 5 states ▪
Slide 25: 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 26: Enhancing Visibility and Awareness
Enhancing Visibility and Awareness 26
Slide 27: 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 28: 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 29: 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 30: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on 30th June, 2022 Top Institutional Shareholders – 30th June, 2022 % Holding Promoters, Others, 27.4% Tata Mutual Fund 4.8% 25.2% Aditya Birla Sun 4.0% Tata AIA Life 3.7% QIB, 10.5% ICICI Prudential Pharma 3.1% Phi Capital, 15.9% Mutual Funds, HDFC Life
Slide 31: Annual Performance Trends
Annual Performance Trends 31
Slide 32: 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 33: 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 34: 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 2.45 2.73 2.42 FY20 FY21 FY22 FY20 FY21 FY22 Average Revenue Per Patient** (in Rs)
Slide 35: 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 36: 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 37: 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 38: 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 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) 789 428 1,133 694 (3,0
Slide 39: 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 40: 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 41: Factsheet
Factsheet Key Valuation Metrics 3-Aug-22 47% 101% NSE Ticker KRSNAA Revenue CAGR PAT CAGR BSE Ticker 543328 5Y (FY17-22) 5Y (FY17-22) Share Price (in Rs) 514 Number. of Shares ( in Cr) 3.14 45% 52% Equity Value (Rs. Cr) 1,614 Radiology Revenue Pathology Revenue Gross Borrowings (Rs. Cr) – 30 June, 2
Slide 42: 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