Vijaya Diagnostic Centre Ltd. · NSE:VIJAYA
Vijaya Diagnostic Centre — Q3 FY23 Earnings Presentation
41 slides from Vijaya Diagnostic Centre's earnings presentation, Feb 13, 2023
Slide 1: Cover letter to stock exchanges
February 13, 2023 To, To, Listing Department The Corporate Relations Department National Stock Exchange Of India Limited, BSE Limited, Exchange Plaza, Phiroz Jeejeebhoy Towers, Bandra Kurla Complex, 25th floor, Dalal Street, Bandra (East), Mumbai- 400 051 Mumbai - 400 001 NSE Symbol. VIJAYA BSE Scri
Slide 2: Q3 & 9MFY23 Earnings Presentation
Vijaya Diagnostic Centre Limited Q3 & 9MFY23 Earnings Presentation February 13, 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vijaya Diagnostic Centre Limited (the ‘Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Q3 & 9MFY23 Financial Performance
Q3 & 9MFY23 Financial Performance
Slide 5: Q3 FY23 – Performance Snapshot
Q3 FY23 – Performance Snapshot Operational & Financial Highlights – Q3 FY23 COVID 2.49 Mn INR 9.2 Mn (1%) Tests INR 1,131.2 Mn 9.8% 89.2% Revenue (YoY) (YoY) 0.77 Mn Footfalls INR 1,121.9 Mn (99%) Non-COVID INR 442.9 Mn 117 EBIDTA Centres (opened 5 39.1% closed 1) EBIDTA Margin INR 163.6 Mn INR 183.
Slide 6: Management comment
Management comment Commenting on the Q3FY23 results performance, Ms. Suprita Reddy, CEO at Vijaya Diagnostic Centre Ltd. said: “We are pleased to report steady performance during a seasonally soft quarter for the industry. The volume trends that were slow in the months of October and November, saw a
Slide 7: Key Financial Highlights – Q3 & 9M FY23
Key Financial Highlights – Q3 & 9M FY23 (INR Mn) Revenue from Operations EBITDA & EBITDA Margin (%) 3,462 43.2% 40.4% 39.1% 45.0% 39.3% 3,382 1,558 1,329 1,108 1,207 1,131 478 487 443 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Shift YoY (%) 2.1% -2.3% -7.4% -14.7
Slide 8: Revenue Mix – Q3 & 9MFY23
Revenue Mix – Q3 & 9MFY23 (In %) Radiology vs. Pathology Breakdown Non-COVID & COVID Allied Breakdown Radiology Pathology Non Covid Covid 8% 3% 1% 66% 67% 64% 67% 65% 92% 97% 99% 34% 33% 36% 33% 35% Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 Non-COVID YoY (%) 9.8% COVID YoY (%) -8
Slide 9: Q3 & 9MFY23 – Key Developments
Q3 & 9MFY23 – Key Developments Non-COVID Test Volumes (# in Million) Recorded its highest ever December monthly volumes in a 0.87 0.90 0.88 0.76 0.79 0.80 0.80 seasonally soft quarter 0.68 0.73 • The Company experienced lower volumes during the month of October and November due to the festive season
Slide 10: Q3 & 9MFY23 - Financial and Operational Discussions (Y-o-Y)
Q3 & 9MFY23 - Financial and Operational Discussions (Y-o-Y) • Revenue from Operations increased by 2.1% YoY to Rs. 1,131 Mn, Non-Covid Revenues grew by 9.8% YoY • During Q3FY23, the Non-COVID business comprised 99% of total revenue share as against 92% revenue share in Q3FY22 Financial • Wellness sh
Slide 11: Indian Diagnostics Market expected to Grow at a Healthy Trajectory
Indian Diagnostics Market expected to Grow at a Healthy Trajectory Indian Diagnostics Market Segment-wise breakup of Indian Diagnostic Market (INR Bn) Radiology Pathology 980 980 +13% +13% FY23E CAGR CAGR 275 - 285 43% - 44% 684 684 FY20 +13% - 14% 190 - 195 CAGR 43% 472 472 +14% CAGR South India 41
Slide 12: Key Financial Highlights
Key Financial Highlights Cash flow from Operations / EBITDA (%) Cash & Cash Equivalents (INR Mn) 95.9% 2,349 2,493 2,425 2,349 2,425 89.5% 75.8% 74.2% 77.1% Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Working Capital Days1 • Cash flow from Operations stood at Rs. 1,190
Slide 13: Key Operational Highlights
Key Operational Highlights Tests Performed (# in Million) Footfalls (# in Million) Tests / Footfalls (# in Million) 6.87 7.35 2.67 2.37 3.09 3.22 3.10 2.73 2.58 2.32 2.63 2.49 0.85 0.85 0.77 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9M
Slide 14: Consolidated Profit & Loss Account – Q3 & 9M FY23
Consolidated Profit & Loss Account – Q3 & 9M FY23 (INR Mn) Particulars Q3 FY23 Q3 FY22 Y-o-Y Q2 FY23 Q-o-Q 9M FY23 9M FY22 Y-o-Y Revenue from operations 1,131.2 1,107.8 2.1% 1,207.5 -6.3% 3,382.3 3,461.7 -2.3% Cost of materials consumed 136.7 163.0 -16.2% 166.5 -17.9% 433.5 536.2 -19.2% Employee ben
Slide 15: Company Overview
VIJAYA fc) DIAGNOSTIC [WISAYA] CENTRE Company Overview The Pioneers in Diagnostic Medicare.
Slide 16: Vijaya at a Glance
Vijaya at a Glance Vijaya Diagnostic Centre Limited is the largest integrated diagnostic chain in South India with 117 state-of-the-art centres spread across 19 cities 40+ 117 Mission Years of Experience Centres Quality Experience in delivering Quality Diagnostic Service State-of-the-art Facilities
Slide 17: Our Journey
Our Journey Awarded one of the Best Healthcare Brands 2022 by The Economic Times Awarded Brand of the Won the Healthcare Leadership One of the earliest year in diagnostic Awards 2022 private diagnostic Vijaya Diagnostic Centre Recognized as one of the services by The CEO service providers to be Awar
Slide 18: At the Forefront of Introducing New Technologies
At the Forefront of Introducing New Technologies Ultrasound & Nuclear Medicine Fourth Generation 1981 Echocardiography 1986 1993 CT Scan 1994 Offer Mammography facility Hawkeye Gamma Automated Microbiology Real Time RT-PCR Assays 2006 2003 Culture 2000 1999 Bone Densitometry Camera with SPECT & Flow
Slide 19: Our Pillars of Strength
Our Pillars of Strength 1 One of the leading players in India’s high growth diagnostics market 2 Integrated diagnostics provider offering one-stop solution 3 High brand recall driving customer stickiness 4 Robust technical capabilities and state-of-the-art technology 5 Experienced Board and strong m
Slide 20: One of the leading players in India's high growth diagnostics market
One of the leading players in India’s high growth diagnostics market Telangana and Andhra Pradesh Market Size Vijaya’s Core Geographies Telangana and Andhra (INR Bn) Dominant Position in Pradesh (44 - 46% of South Telangana & India) Andhra Pradesh +14% 120 -130 Karimnagar CAGR Mancherial Nizamabad 8
Slide 21: Integrated Diagnostic service provider with extensive network
Integrated Diagnostic service provider with extensive network… National Reference Lab Vijaya Diagnostic Centre Flagship Centre #1 #1 Reference Lab Customers Hubs #26 Samples #15 Customer (Walk-in) Home Collection B2B Hospitals & Labs Sample Flow Patient Flow Spokes #90 Flagship Centre = Lab Sample C
Slide 22: One-Stop Solutions for Pathology & Radiology
…offering One-Stop Solutions for Pathology & Radiology Complete Range of Diagnostic Services under One Roof Comprehensive and high quality integrated diagnostic services through our operational network 21
Slide 23: High brand recall driving customer stickiness
High brand recall driving customer stickiness Customer Centric Approach Quality Diagnostic Services B2C Revenue 90% 93% 92% 94% Higher brand recall FY19 FY20 FY21 FY22 High share of walk-in customers Operational Metrics (INR) Sticky individual customer 1,431 1,228 1,214 1,276 “For excellence in Qual
Slide 24: Robust Technical Capabilities with State-of-the-art IT Infrastructure
Robust Technical Capabilities with State-of-the-art IT Infrastructure 8 Advanced Software to Manage Clinical Data 21 CT Machines PET CT / Gamma machines 23 200+ Fully Integrated Radiology Advance Laboratory MRI Machines Radiologists, Lab Doctors & Information Systems (RIS) and Information Management
Slide 25: Experienced Board of Directors
Experienced Board of Directors Dr. S Surendranath Reddy - Executive Chairman Dr. D Nageshwar Reddy - Non-executive, Independent Director ▪ Founder of Vijaya with 40+ years of experience in building Vijaya as South India’s largest integrated diagnostic chain ▪ Chairman of Asian Institute of Gastroent
Slide 26: Strong Management Team
Strong Management Team Dr. S. Surendranath Reddy Mr. Sunil Chandra Kondapally Ms. Suprita Reddy Mr. Narasimha Raju K.A Executive Chairman Executive Director Chief Executive Officer Chief Financial Officer ▪ 40+ years of experience in ▪ With Vijaya since incorporation ▪ With Vijaya since 2003 and ▪ A
Slide 27: Awards & Accolades
Awards & Accolades Healthcare Leadership Awards Pride of India Brands Award One of the Best Healthcare Indo Global Award for Company of the Year - Best Healthcare Brands 2022 2022 2022 Brands 2021 Healthcare Excellence Healthcare 2022 2021 2021 2021 2022 2022 Presented by Presented by Presented by P
Slide 28: Shareholding Pattern as of 31st Dec 2022
Shareholding Pattern as of 31st Dec 2022 Others FII’s 6.5% Marquee Institutional Investors Wasatch Advisors 24.3% Nippon Life India Promoter & Promoter group Aberdeen Standard Investments 55.0% Axis Mutual Fund 14.2% Fidelity Group DSP Healthcare Fund Abu Dhabi Investment Authority DIIs Goldman Sach
Slide 29: Strategy Going Forward
VIJAYA fc) DIAGNOSTIC [WISAYA] CENTRE Strategy Going Forward
Slide 30: Deepen Footprint in our Core Markets - Telangana & Andhra Pradesh
Deepen Footprint in our Core Markets - Telangana & Andhra Pradesh Leveraging Existing Presence Given under-penetration of diagnostic market, we will continue to focus on Opening additional diagnostic centres through owned model Mancherial Nizamabad Karimnagar Expanding network through setting up spo
Slide 31: Expand in Adjacent Geographies & East India
Expand in Adjacent Geographies & East India Network (FY22) East India Strategy ◼ Expand presence in East India given growing demand ◼ Replicate our successful hub and spokes model in East India ◼ Established a hub in Kolkata and plan is to set up additional diagnostic centres South India Strategy ar
Slide 32: Continued Focus on Providing Customer Centric Services and Offerings
Continued Focus on Providing Customer Centric Services and Offerings Preventive and Wellness Testing to Boost Demand for Diagnostics FY20E Industry Size FY23P CAGR: ~20% 101-108 61-68 Rest of the Wellness & Rest of the Wellness & market Preventive market Preventive 90% 9% - 10% 89% 11% FY20 FY23 Key
Slide 33: Financial & Operational Highlights
Financial & Operational Highlights
Slide 34: Robust Operational Metrics
Robust Operational Metrics Diagnostic Centre (Nos) Footfalls (Mn) Tests Performed (Mn) 95 3.62 9.32 80 7.91 73 2.79 6.99 7.09 61 2.63 2.38 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Test per Footfall (Nos) Revenue per Test (INR) Revenue per Footfall (INR) Impact of COVID-19 531 496
Slide 35: Consistent Financial Performance
Consistent Financial Performance (INR Mn) Revenue EBIDTA PAT CAGR:16% 4,624 CAGR:24% 1,097 2,037 CAGR:34% 3,767 3,388 1,660 845 2,926 1,326 625 1,081 459 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 EBIDTA Margin (%) PAT Margin (%) 710 bps 800 bps 22.4% 23.7% 44.1% 44.1% 18.5% 15.7% 3
Slide 36: Sustainable Cash Generation & Increasing Return Ratios
Sustainable Cash Generation & Increasing Return Ratios Cash & Cash Equivalents CFO / EBIDTA (%) (INR Mn) 2,467 84% 80% 2,277 78% 77% 1,729 1,215 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 RoCE Pre-Cash (%) RoE (%) 43% 23% 38% 23% 23% 33% 22% 30% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ROCE (Pre-cash):
Slide 37: Annexure
VIJAYA fc) DIAGNOSTIC [WISAYA] CENTRE Annexure The Pioneers in Diagnostic Medicare.
Slide 38: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account (INR Mn) Particulars FY22 FY21 FY20 FY19 Revenue from operations 4,624 3,767 3,388 2,926 Cost of materials consumed 715 571 439 405 Employee benefits expense 707 574 624 539 Other expenses 1,165 962 999 901 EBITDA 2,037 1,660 1,326 1,081 EBITDA % 44.1% 44.1% 39.1%
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet (INR Mn) Assets Mar-22 Mar-21 Mar-20 Mar-19 EQUITY AND LIABILITIES Mar-22 Mar-21 Mar-20 Mar-19 NON-CURRENT ASSETS 4,436 3,022 2,959 2,689 EQUITY 4,695 3,592 2,741 2,069 Property, plant and equipment 1,966 1,358 1,398 1,437 Equity share capital 102 45 45 45 Capital work-in-
Slide 40: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (INR Mn) Particulars Mar-22 Mar-21 Mar-20 Mar-19 Cash Flow from Operating Activities Profit before Tax 1,474 1,121 834 653 Adjustment for Non-Operating Items 572 534 492 431 Operating Profit before Working Capital Changes 2,046 1,655 1,326 1,084 Changes in Working Ca
Slide 41: Thank You
THANK YOU Company Investor Relations Advisors Vijaya Diagnostic Centre Limited (VDCL) Citigate Dewe Rogerson (CDR India) Mr. Anoop Poojari / Mr. Siva Rama Raju – Head of Strategy Mr. Devrishi Singh +91 90597 00749 / +91 99485 95555 sivaramaraju.v@vijayadiagnostic.in Tel: +91 98330 90434 / ir@vijayad
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