Vijaya Diagnostic Centre Ltd. · NSE:VIJAYA
Vijaya Diagnostic Centre — Q1 FY23 Earnings Presentation
41 slides from Vijaya Diagnostic Centre's earnings presentation, Aug 9, 2022
Slide 1: Investor Presentation Filing Letter to Stock Exchanges
IIIJAYA JAGNOSTIC CEIV RE August 9, 2022 To, To, Listing Department The Corporate Relations Department National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Phiroz Jeejeebhoy Towers, 25~~ Floor, DaIaI Street Bandra Kurla Complex, Bandra (East), Mumbal- 400 051 Mumbai- 400 001 Compan
Slide 2: Q1 FY23 Earnings Presentation
Vijaya Diagnostic Centre Limited Q1 FY23 Earnings Presentation August 09, 2022
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: Q1 FY23 Financial Performance
Q1 FY23 Financial Performance
Slide 5: Q1 FY23 – Performance Snapshot
Q1 FY23 – Performance Snapshot Operational & Financial Highlights – Q1 FY23 COVID 2.23 Mn INR 32.0 Mn (3%) Tests INR 1,043.6 Mn 11.6% 90.0% Revenue 0.75 Mn Footfalls INR 1,011.6 Mn (97%) Non-COVID INR 398.9 Mn 100 EBIDTA Centres (opened 5) 38.2% EBIDTA Margin INR 174.5 Mn 95% Profit After Tax B2C Re
Slide 6: Management comment
Management comment Commenting on the Q1FY23 results performance, Ms. Suprita Reddy, CEO at Vijaya Diagnostic Centre Ltd. said: “I am pleased to share that we have commenced the fiscal on a positive note. During Q1FY23, Vijaya was able to capitalize on the healthy recovery in demand from its customer
Slide 7: Key Financial Highlights – Q1 FY23
Key Financial Highlights – Q1 FY23 (INR Mn) Revenue from Operations EBITDA & EBITDA Margin (%) 4,624 46.3% 41.2% 38.2% 44.1% 44.1% 3,767 2,037 1,660 1,227 1,162 1,044 569 479 399 Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Shift YoY (%) -14.9% 22.7% -29.8% 22.7% PAT & PAT Mar
Slide 8: Revenue Mix – Q1 FY23
Revenue Mix – Q1 FY23 (INR Mn) Radiology vs. Pathology Breakdown Non-COVID & COVID Allied Breakdown Radiology Pathology Non Covid Covid 15% 3% 26% 68% 69% 64% 66% 67% 85% 97% 74% 32% 31% 36% 34% 33% Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q4 FY22 Q1 FY23 Non-COVID YoY (%) 11.6% COVID YoY (%) -90.0
Slide 9: Q1 FY23 - Financial and Operational Discussions (Y-o-Y)
Q1 FY23 - Financial and Operational Discussions (Y-o-Y) • Revenue from Operations decreased by 14.9% YoY to Rs. 1,043.6 Mn, Non-COVID Revenues grew by 11.6% YoY o Decline in revenue largely on account of decrease in COVID business. Q1FY23 witnessed a transition in the revenue mix profile from COVID
Slide 10: Q1 FY23 – Key Developments
Q1 FY23 – Key Developments Non-COVID Test Volumes (# in Million) Healthy month-on-month uptick in operational performance 0.76 • During Q1FY23, the Company registered growth on a month-on-month basis on the 0.73 back of non-COVID, radiology and wellness businesses 0.68 • As the environment normalize
Slide 11: Key Financial Highlights
Key Financial Highlights Cash flow from Operations / EBITDA (%) Cash & Cash Equivalents (INR Mn) 98.7% 2,529 2,466 2,466 89.5% 2,354 2,219 78.6% 78.1% 77.6% Q1FY22 Q4FY22 Q1FY23 FY21 FY22 Jun-21 Mar-22 Jun-22 Mar-21 Mar-22 Working Capital Days1 • Cash flow from Operations stood at Rs. 394 mn. as Q1F
Slide 12: Key Operational Highlights
Key Operational Highlights Tests Performed (# in Million) Footfalls (# in Million) Tests / Footfalls (# in Million) 9.32 3.62 7.09 2.98 2.63 2.55 2.69 2.57 2.31 2.18 2.45 2.23 0.94 0.96 0.75 Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Revenue
Slide 13: Consolidated Profit & Loss Account – Q1 FY23
Consolidated Profit & Loss Account – Q1 FY23 (INR Mn) Particulars Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q Revenue from operations 1,043.6 1,226.9 -14.9% 1,162.0 -10.2% Cost of materials consumed 130.3 210.8 -38.2% 178.8 -27.1% Employee benefits expense 194.8 161.5 20.6% 192.0 1.5% Other expenses 319.6 2
Slide 14: Company Overview
VIJAYA S DIAGNOSTIC [WIJAYA | CENTRE Company Overview The Pioneers in Diagnostic Medicare.
Slide 15: Vijaya at a Glance
Vijaya at a Glance Vijaya Diagnostic Centre Limited is the largest integrated diagnostic chain in South India with 100 state-of-the-art centres spread across 17 cities 40+ 100 Mission Years of Experience Centres Quality Experience in delivering Quality Diagnostic Service State-of-the-art Facilities
Slide 16: Our Journey
Our Journey Awarded Brand of the year in diagnostic One of the earliest private diagnostic Recognized as one of the Best Imaging services by The CEO Magazine and service providers to be approved for Vijaya Diagnostic Centre centres in Hyderabad by The Week Telangana Healthcare Leadership award COVID
Slide 17: 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 18: 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 19: 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 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 #24 Samples #12 Customer (Walk-in) Home Collection B2B Hospitals & Labs Sample Flow Patient Flow Spokes #75 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 5 Advanced Software to Manage Clinical Data 18 CT Machines PET CT / Gamma machines 20 200+ 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 Ms. Anusha Kanumuru Executive Chairman Executive Director Chief Executive Officer Chief Financial Officer Company Secretary & Compliance Officer 40+ years of experience in With
Slide 27: Awards & Accolades
Awards & Accolades One of the Best Healthcare Indo Global Award for Company of the Year - Leading Diagnostic Chain of the India’s Greatest Leaders 2020-21 Brands 2021 Healthcare Excellence Healthcare Year Ms. Suprita Reddy - CEO 2021 2021 2021 2021 2021 Presented by Presented by Presented by Present
Slide 28: Shareholding Pattern as of 30th June 2022
Shareholding Pattern as of 30th June 2022 Others FII’s 4.2% Marquee Institutional Investors Fidelity Group 28.0% Wasatch Advisors Promoter & Promoter Axis Mutual Fund 55.0% group Aberdeen Standard Investments 12.8% Nippon Life India Asset Management Aditya Birla Sun Life Asset Management Abu Dhabi I
Slide 29: Strategy Going Forward
VIJAYA S DIAGNOSTIC [WIJAYA | CENTRE Strategy Going Forward The Pioneers in Diagnostic Medicare.
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 & franchisee model Mancherial Nizamabad Expanding network through setting up s
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 S DIAGNOSTIC [WIJAYA | 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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