Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Investor Presentation (August 2019)
38 slides from Dr. Lal Pathlabs's investor presentation, Aug 19, 2019
Slide 1: Exchange filing cover letter under Regulation 30
August 19, 2019 The National Stock Exchange of India Limited The Bombay Stock Exchange Limited Exchange Plaza, Corporate Relationship Department Plot No. C/1, G Block, Phiroze Jeejeeboy Towers Sandra Kurla Complex, Sandra (E) Dalal Street, Mumbai - 400051 Mumbai - 400001 Subject: Disclosure of infor
Slide 2: Dr. Lal PathLabs Limited Corporate Presentation August 2019
Dr. Lal PathLabs Limited (DLPL) Corporate Presentation August 2019
Slide 3: Disclaimer
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 presentat
Slide 4: Table of Contents
Table of Contents Company overview 04 Investment highlights 10 Q1 FY20 highlights & financial performance 25 LPL strategy for future growth 35 DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined contingenc
Slide 5: Company Overview
Company Overview Dr. Lal PathLabs at a glance Our Evolution Dr. Lal PathLabs overview Experienced Management team 4
Slide 6: Dr. Lal PathLabs – At a glance
Dr. Lal PathLabs – At a glance Professionally managed operations; 7 decades of 16% 20% 25% experience in the world of diagnostics NO. 1 5-Year Revenue CAGR 5-Year PAT CAGR Dividend Payout BRANDED Well diversified outside home NATIONAL market of ‘Delhi NCR’ DIAGNOSTICS 70%+ 58% Zero CHAIN WITH ROCE R
Slide 7: Our Evolution
Our Evolution 1949 – 2005 2010 – 2015 Strong position in North India, Foundation 2005 – 2010 building network 2015 onwards in other Higher contribution Building geographies from Rest of India, capabilities for Commissioned state scale up Investment by TA Associates 1949: Founded by Dr. Major S.
Slide 8: Dr. Lal PathLabs overview
Dr. Lal PathLabs overview Established consumer healthcare brand in diagnostic services Routine testing Specialized testing Pan-India integrated coverage with 200 clinical labs Bio- Molecular (including National Reference Lab1 at Delhi and Regional Ref Lab at chemistry diagnostics Test Menu Kolkata),
Slide 9: Experienced Management team
Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Ved Prakash Goel Bharath Uppiliappan Whole-time Director and Chief Chairman and Managing Director Whole-time Director Chief Financial Officer CEO India Business Executive Officer Shankha Banerjee Munender Soper
Slide 10: Investment Highlights
Investment Highlights g.: 4 9
Slide 11: Investment Highlights
Investment Highlights Well-positioned in one of the Established consumer healthcare fastest-growing segments of the brand in diagnostic services Indian healthcare industry Attractive operating metrics and Scalable model integrated through multiple levers in place to drive next centralized IT platfor
Slide 12: Indian Healthcare Services is a large growth opportunity
Indian Healthcare Services is a large growth opportunity India’s expected FY20 India healthcare Private expenditure on India GDP in FY201 population in 2022 expenditure healthcare in 2015 India, highly Total Healthcare Expenditure as % of GDP (2015) underpenetrated 17.1% market 11.2% 8.9% 8.2% 5.6%
Slide 13: Diagnostic Services industry expected to grow to INR 80,210 cr. by FY20
INR 59,610 cr. Diagnostic Services industry expected to grow to INR 80,210 cr. by FY20 Diagnostic Services Industry Size Growth Drivers INR 80,210 cr. INR 59,610 cr. Increase in Demand evidence-based for lifestyle treatments diseases-related services to grow 2017-18E 2019-20P Focus on Screening, ear
Slide 14: Diagnostic Services industry remains highly fragmented
Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Large Centres, Pan-India Chains 35-40% 48% Diagnostic Chain, 15% Regional Chains Hospital 60-65% Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Industry
Slide 15: Established consumer healthcare brand in Diagnostic Services
Established consumer healthcare brand in Diagnostic Services Pillar of a Strong Brand Medico Marketing Doctor Online Accreditations from Call Centre Query Handling Registration CAP, NABL and ISO Offline Accreditations Centrally administered surveillance programs Online Customer Lab Coverage in
Slide 16: Scalable Model integrated through centralized IT platform
Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Reference Clinical No. of PSCs No. of PUPs Lab Laboratories 2,569 200 6,426 Clinical Clinical 2,153 5,624 Lab Lab 5,021 1,759 193 PSC PSC PSC PSC 189 • Centrali
Slide 17: Scalable Model integrated through centralized IT platform
Scalable Model integrated through centralized IT platform allows for network expansion Integrated National Network… …backed by Centralized IT platform which fully integrated network Enterprise Resource Planning (ERP) System Payables, receivables, inventory, ledgers etc. Scalability and connectiv
Slide 18: Collection network
Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab & Regional Ref. Lab Single brand pulls patients Clinical Labs (Testing/Collection) Walk-in customers account for Patient Service Centers Pickup Points highest share of
Slide 19: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR crore) CAGR: 15.0% CAGR: 19.4% CAGR: 14.8% 1,203 1,057 17.6 41.8 912 15.2 34.7 13.3 29.3 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY19 Revenues increased on account of : Consumer brand and network Incr
Slide 20: Multiple levers in place to drive next phase of growth
Multiple levers in place to drive next phase of growth Cluster and focused geography approach Expand presence in existing Deepen presence in North India by developing additional reference labs markets Scale up in East India by developing ecosystems via Kolkata reference lab Targeted expansio
Slide 21: Strategies to deepen our presence
Strategies to deepen our presence Preventive healthcare screening and chronic / lifestyle Online report; disease management services. Bundling of tests data analytics South and Commitment to quality Focus on retail West India and reliability of services network and home collection Focus on hospital
Slide 22: Robust financial performance
Robust financial performance Total Revenue West India Others EBITDA1,PAT and Return on Net Worth 7% 2% INR (crore) (INR crore/%) South India 6% EBITDA Margin Before ESOP 27.2% 26.3% 26.0% East India Revenue by &CSR charge1 CAGR: 14.8% 1,203 13% Geography PAT Margin 17.1% 16.3% 16.7% 1,057 912 (FY19)
Slide 23: Robust financial performance (Cont’d)
Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents Times (INR crore) Self funded growth on 523 account of strong cash flow 8.5x generation 7.5x 6.6x 406 Attractive fixed asset turnover ratio given asset- 284 light model 185 Current net cash position 145 105 a
Slide 24: Q1 FY20 Highlights & Financial Performance
Q1 FY20 Highlights & Financial Performance 23
Slide 25: Q1 FY20 Snapshot
Q1 FY20 Snapshot 14.7% 14.5% 19.0% INR 335.2 Cr INR 90.8 Cr INR 59.1 Cr Revenues Normalised EBITDA** PAT 15.9% 19.8% ~4.9 mn ~ 11.9mn Patients Tested Samples Processed * As on March 31, 2019 ** Excluding Ind AS 116 impact 24
Slide 26: Overview of Dr. Lal PathLabs
Overview of Dr. Lal PathLabs Established brand Pan-India integrated Varied Offerings Unique and successful coverage operating model 200 clinical labs (including National Reference Lab at Catalogue of 459 test panels, Scalable model integrated Established consumer Delhi and Regional Reference 2,489 p
Slide 27: Key Performance Highlights
Key Performance Highlights Healthy improvement in patient volume trends during Q1 at 15.9% supporting sustained momentum in revenues During Q1 FY20: • Revenues showed increase of 14.7% YoY at Rs 335.2 Cr • Number of patients tested were at 4.9 million • Normalised EBITDA (after eliminating the impac
Slide 28: Financials
Financials Q1 FY20 Q1 FY20 Q1 FY19 Gr % Gr % Particulars (Rs. Cr.) FY'19 (With IND-AS 116) (W/O IND-AS 116) (W/O IND-AS 116) (With IND AS) (W/O IND-AS 116) Revenue 335.2 335.2 292.3 14.7% 14.7% 1,203.4 Other Income 14.4 14.4 9.4 53.2% 53.2% 46.0 Total Income 349.6 349.6 301.7 15.9% 15.9% 1,249.4 Raw
Slide 29: Financial Highlights
Financial Highlights All figures in Rs. Cr 335.2 292.3 Q1 FY20 delivered 14.7% increase in revenues at Rs. 335.2 Cr. This followed: Revenue • Healthy trend in volume growth at 15.9% • Increase in tests per patient from 2.3 to 2.4 Q1 FY20 realisation per patient is at Rs. 684 from Rs. 691 in Q1 F
Slide 30: Financial Highlights
Financial Highlights All figures in Rs. Cr 89.4 75.4 Q1 FY20 PBT at Rs 89.4 Cr vs. Rs. 75.4 last year PBT Q1 FY20 PBT margin at 26.7 % vs. 25.8% last year Q1 FY19 Q1 FY20 59.1 49.7 Q1 FY20 PAT at Rs. 59.1 Cr vs Rs. 49.7 Cr, a growth of 19.0% PAT Q1 FY20 PAT margin at 17.6% vs. 17.0% last yea
Slide 31: Operating Highlights
Operating Highlights No. of Clinical Laboratories No. of PSCs 2,569 No. of PUPs 200 2,153 189 193 1,759 6,426 5,021 5,624 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 No. of Patients No. of Samples 17.6 41.8 15.2 34.7 13.3 29.3 4.9 11.9 FY17 FY18 FY19 Q1 FY20 FY17 FY18 FY19 Q1 FY20 30
Slide 32: Management Commentary
Management Commentary Commenting on the results announcement, Dr. Arvind Lal - Chairman and Managing Director said; “We have grown as a national healthcare services brand on the back of patient centric solutions that we have developed. As we move to the next phase, we will strive to strengthen our n
Slide 33: Vibrant Outlook
Vibrant Outlook Strongly develop Rest of India geographies, through Kolkata National Laboratory and cluster city approach for attractive markets Target to grow Evaluate best fit inorganic Deeper Penetration within the ahead opportunities North, East & Central Indian of the markets industry Higher co
Slide 34: LPL Strategy for future growth
LPL Strategy for future growth 33
Slide 35: DLPL Strategy for future growth
DLPL Strategy for future growth 1 2 Strengthen Expansion in Existing Offering Operations Expand management of 4 Geographic expansion hospital based and clinical 3 laboratories 34
Slide 36: DLPL Strategy for future growth
DLPL Strategy for future growth Expand management of hospital Strengthen Existing Operations Expansion in Offering Geographic expansion based and clinical laboratories Boosting quality & reliability Improve breadth of Tap incremental contracts for Focus city approach standards diagnostic testing in
Slide 37: Shareholding as of 30th June, 2019
Shareholding as of 30th June, 2019 19.3% FII 14.6% 56.9% Others Promoter and Promoter Group 9.2% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well 36
Slide 38: Contact us
Contact us About Dr Lal PathLabs Limited (DLPL) 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 an
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