Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Investor Presentation (November 2019)
39 slides from Dr. Lal Pathlabs's investor presentation, November 2019
Slide 1: Dr. Lal PathLabs Limited (DLPL) Corporate Presentation November 2019
Dr. Lal PathLabs Limited (DLPL) Corporate Presentation November 2019
Slide 2: 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 3: Table of Contents
Table of Contents Company overview 4 Investment highlights 9 Q2 & H1 FY20 highlights & financial performance 24 DLPL strategy for future growth 36 DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined contin
Slide 4: Company Overview
Company Overview Dr. Lal PathLabs at a glance Our Evolution Dr. Lal PathLabs overview Experienced Management team 4
Slide 5: Dr. Lal PathLabs – At a Glance
Dr. Lal PathLabs – At a Glance 16% 20% Zero Professionally managed operations; 7 decades of experience in the world of NO. 1 5-Year Revenue 5-Year PAT CAGR Net Debt BRANDED diagnostics CAGR NATIONAL 59% Well diversified outside home market of ‘Delhi NCR’ DIAGNOSTICS ~70%+ CHAIN WITH Revenue Contribu
Slide 6: Our Evolution
Our Evolution 1949 – 2005 2010 – 2015 Strong position in 2005 – 2010 2015 onwards North India, Foundation building network 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 7: 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 Kolkata), 2,569 Pat
Slide 8: 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 9: Investment Highlights
| Y 4 a | Investment Highlights
Slide 10: 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 11: 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 12: Diagnostic Services industry expected to grow to INR 802 bn by FY20
INR 596 bn Diagnostic Services industry expected to grow to INR 802 bn by FY20 Diagnostic Services Industry Size Growth Drivers INR 802.1 Bn INR 596.1 Bn Increase in Demand evidence-based for lifestyle treatments diseases-related services to grow 2017-18E 2019-20P Focus on Screening, early detection
Slide 13: 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 14: 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 Accreditations Offline Centrally administered surveillance programs Online Customer Lab Coverage in
Slide 15: Scalable Model integrated through centralized IT platform allows for network expansion
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 16: Scalable Model integrated through centralized IT platform allows for network expansion
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 17: Collection network
Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation Pickup Points Hospitals Doctors Labs National Reference Lab & Regional Ref. Lab Single brand pulls patients Walk-in customers account for Patient Service Centers Walk-ins highest share of re
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 mn) CAGR: 15.0% CAGR: 19.4% CAGR: 14.8% 12,034 10,569 17.6 41.8 9,124 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 Inc
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 West India Commitment to quality Focus on retail and reliability of services network and home collection Focus on hospital
Slide 22: Robust financial performance
Robust financial performance Total Revenue West India Others 2% EBITDA1,PAT and Return on Net Worth INR (Mn) 7% (INR Mn/%) South India 6% EBITDA Margin Before ESOP 27.2% 26.3% 26.0% East India Revenue by &CSR charge1 CAGR: 14.8% 12,034 Geography 13% PAT Margin 17.1% 16.3% 16.7% (FY19) 10,569 9,124 R
Slide 23: Robust financial performance (Cont'd)
Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents Times (Mn) Self funded growth on 5,229 account of strong cash flow 8.5x generation 7.5x 6.6x 4,058 Attractive fixed asset turnover ratio given asset- 2,836 light model 1,848 Current net cash position 1,448 1,
Slide 24: Q2 & H1 FY20 Highlights & Financial Performance
Q2 & H1 FY20 Highlights & Financial Performance 24
Slide 25: Q2 FY20 Snapshot
Q2 FY20 Snapshot 15.1% 15.7% 41.4% INR 365.6 Cr INR 104.7 Cr INR 81.0 Cr Revenues Normalised EBITDA* PAT 12.1% 17.6% ~5.3 mn ~13.0 mn Patients Tested Samples Processed * Excluding Ind AS 116 impact 25
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 12.1% increase in patient volumes during Q2 FY20 driven by sustained growth in the Rest of India market During Q2 FY20: • Revenues registered 15.1% gains Y-o-Y at Rs. 365.6 crore • Number of patients tested stood at 5.3 million • Normalised EBITDA (after eliminating the im
Slide 28: Financials
Financials Q2 FY20 Q2 FY20 Q2 FY19 Gr % Gr % FH FY20 FH FY20 FH FY19 Gr % Gr % Particulars (Rs. Cr.) (With IND-AS (W/O IND-AS (W/O IND-AS (With IND (W/O IND (With IND-AS (W/O IND-AS (W/O IND-AS (With IND (W/O IND 116) 116) 116) AS 116) AS 116) 116) 116) 116) AS 116) AS 116) Revenue 365.6 365.6 317.5
Slide 29: Financial Highlights
Financial Highlights All figures in Rs. Cr 365.6 317.5 Recorded 15.1% revenue growth in Q2 FY20 at Rs. 365.6 crore driven by: Revenue • Higher volume growth of 12.1% and • Healthy growth in tests per patient from 2.34 to 2.45 Q2 FY20 realisation per patient came in at Rs. 687 which is higher tha
Slide 30: Financial Highlights
Financial Highlights All figures in Rs. Cr 102.3 88.1 Q2 FY20 PBT stood at Rs. 102.3 crore vs. Rs. 88.1 crore in the PBT corresponding quarter of last year Q2 FY20 PBT margin is at 28%, as against 27.7% in Q2 last year Q2 FY19 Q2 FY20 81.0 57.3 Q2 FY20 PAT came in at Rs. 81.0 crore vs. Rs. 57.
Slide 31: Operating Highlights
Operating Highlights No. of Clinical Laboratories No. of PSCs No. of PUPs 189 193 200 2,569 6,426 2,153 5,021 5,624 1,759 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 10.2 24.9 FY17 FY18 FY19 H1 FY20 FY17 FY18 FY19 H1 FY20 31
Slide 32: Management Commentary
Management Commentary Commenting on the results announcement, Dr. Arvind Lal - Chairman and Managing Director said: “We have once again reported consistent performance during the quarter under review, further strengthening our premier position as a branded national diagnostics player in the country.
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: Leveraging digital to make life easier for patient
Leveraging digital to make life easier for patient Digital Lab e-Commerce Mobile app • Self registration kiosk for • Online test / health package • Test booking, view and patients booking download current and • Integrated payment gateway • Online payment, order related historical test reports for on
Slide 35: Shareholding as of 30th September, 2019
Shareholding as of 30th September, 2019 20.1% FII 13.8% 56.9% Others Promoter and Promoter Group 9.2% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well 35
Slide 36: DLPL Strategy for future growth
DLPL Strategy for future growth 36
Slide 37: DLPL Strategy for future growth
DLPL Strategy for future growth 1 2 Strengthen Expansion in Existing Offering Operations 4 3 Expand management of Geographic hospital based expansion and clinical laboratories 37
Slide 38: 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 39: 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
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