Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Q4 FY21 Earnings Presentation
44 slides from Dr. Lal Pathlabs's earnings presentation, May 2021
Slide 1: Dr. Lal PathLabs Limited (DLPL) Corporate Presentation May 2021
Dr. Lal PathLabs Limited (DLPL) Corporate Presentation May 2021
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 Q4 FY21 highlights & financial performance 21 DLPL strategy for future growth 34 DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined contingenci
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 India’s Leading & Trusted 15% 22% 200% Diagnostics Company Largest* 3 Year Revenue 3-Year PAT Equity Dividend CAGR CAGR for FY 20-21 diagnostics 70+ years of experience chain in the in the field of diagnostics country with ~86% Rs 985.9 Cr. PAN India ROCE Cash & Invest
Slide 6: 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 7: Dr. Lal PathLabs overview
Dr. Lal PathLabs overview Established consumer healthcare brand in diagnostic services Routine testing Specialized testing Bio- Molecular Pan-India integrated coverage with 231 clinical labs chemistry diagnostics (including National Reference Lab1 at Delhi and Regional Ref Lab at Test Menu Kolkata),
Slide 8: Experienced Management team
Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Bharath Uppiliappan Ved Prakash Goel Executive Chairman Managing Director Whole-time Director Chief Executive Officer Chief Financial Officer Shankha Banerjee Munender Soperna Rajat Kalra Manoj Garg Company Sec
Slide 9: Investment Highlights
Investment Highlights y. 4 4
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 Public spend Out of pocket India’s expected by GOI on FY22 India healthcare India GDP in FY211 expenses to overall population in 2022 healthcare in industry size2 healthcare spends4 FY251 Total Healthcare Expenditure as % of GDP (2018) 3 India
Slide 12: Drivers of the diagnostics services market
Drivers of the diagnostics services market Diagnostic Services Industry Size Growth Drivers 11 ~USD 11 Bn USD 10 Bn Increase in Demand evidence-based for lifestyle treatments diseases-related services to grow 2020 2022 Focus on Screening, early detection, preventive diseases and and monitoring reduc
Slide 13: Diagnostic Services industry remains highly fragmented
Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Large Standalone Pan-India Centres, 47% Chains 35-40% Diagnostic Chain, 16% Regional Chains 60-65% Hospital Based, 37% Largely fragmented and unorganized Source: Edelweiss Research Report 13
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 Offline Accreditations 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 Laboratories1 3,705 9,247 231 Clinical Clinical 3,095 Lab Lab 6,995 2,569 6,426 216 PSC PSC PSC PSC 200 • Central
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 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 18: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR Cr.) CAGR: 7.3% CAGR: 9.1% CAGR: 14.6% 20.3 49.7 1,581.3 19.4 47.7 1,330.4 17.6 41.8 1,203.4 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY21 Revenues increased on account of : Consumer brand and network
Slide 19: Robust financial performance
Robust financial performance Total Revenue South Others EBITDA*,PAT and Return on Net Worth (INR Cr.) India (INR Cr./%) 2% 5% CAGR: 14.6% West India 10% Delhi & 462.6 1,581.3 NCR 365.6 1,330.4 37% 313.2 296.5 1,203.4 East Revenue by 227.6 India 200.5 17% Geography (FY21) FY19 FY20 FY21 *EBITDA befor
Slide 20: Robust financial performance (Cont'd)
Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents Times (INR Cr.) Self funded growth on 926.6 account of strong cash flow generation 10.0x Attractive fixed asset 8.5x 580.0 turnover ratio given asset- 7.5x 522.9 light model Current net cash position 184.8 16
Slide 21: Q4 & FY21 Highlights & Financial Performance
Q4 & FY21 Highlights & Financial Performance 21
Slide 22: Q4 FY21 Snapshot
Q4 FY21 Snapshot 42.9% 101.7% 161.0% INR 431.0 Cr INR 129.5 Cr INR 85.1 Cr Revenues Normalised EBITDA PAT 33.3% 34.7% ~ 5.9 mn 15.1 mn ~ Patients Samples Q4 FY21 is not comparable to Q4 FY20 due to Nationwide lock-down in March 2020 22
Slide 23: Overview of Dr. Lal PathLabs
Overview of Dr. Lal PathLabs Established brand Pan-India integrated Varied Offerings Unique and successful coverage operating model 231 clinical labs (including National Reference Lab at Catalogue of 471 test panels, Scalable model integrated Established consumer Delhi and Regional Reference 2,590 p
Slide 24: COVID, COVID Allied & Non-COVID Revenue
COVID, COVID Allied & Non-COVID Revenue Rs. Cr. • Non-COVID business grew at a phenomenal 382 growth rate of 26.8% in Q4 FY21 347 355 • COVID portfolio contribution to total revenue declined to 11.2% in Q4 FY21 from 21.6% in 209 Q3 FY21 due to regulations on pricing of RT- PCR testing • COVID Allied
Slide 25: Key Performance Highlights
Key Performance Highlights During Q4 FY21: • Revenues enhanced by 42.9% Y-o-Y to Rs. 431.0 crore • Normalised EBITDA (after eliminating the impact of stock based compensation & CSR) came in at Rs. 129.5 crore • Profit After Tax at Rs. 85.1 crore, higher by 161% over same period last year • Final div
Slide 26: Financials
Financials Particulars (Rs. Cr.) Q4 FY21 Q4 FY20 Gr % FY21 FY20 Gr % Revenue 431.0 301.7 42.9% 1,581.3 1,330.4 18.9% Expenditure 309.0 244.4 1,145.0 986.8 EBITDA 122.0 57.3 112.9% 436.3 343.6 27.0% Stock based comp. & CSR cost 7.5 6.9 26.3 22.0 Normalised EBITDA 129.5 64.2 101.7% 462.6 365.6 26.5% N
Slide 27: Financial Highlights
Financial Highlights All figures in Rs. Crore +42.9% • In Q4 FY21, Revenue improved to Rs. 431.0 crore, higher by 42.9% Y-o-Y led by : 431.0 – 33.3% increase in volumes 301.7 – Growth in Non-COVID business and uptick in Revenue COVID testing volumes in March • Realisation per patient in Q4 FY21 stoo
Slide 28: Financial Highlights
Financial Highlights All figures in Rs. Crore +144.1% • PBT for Q4 FY21 stood at Rs. 110.8 crore as compared to 110.8 Rs. 45.4 crore reported in the same quarter last year, representing a growth of 144.1% PBT • Q4 FY21 PBT margin came in at 25.7% vs. 15.0% in the 45.4 corresponding quarter of last y
Slide 29: Management Commentary
Management Commentary Commenting on the results announcement, (Hony) Brig. Dr. Arvind Lal, Executive Chairman “Even though the concluding quarter of FY21 was marked by the second wave of COVID-19 pandemic in India, we have ensured that our non-COVID business has shown growth. The COVID business star
Slide 30: Vibrant Outlook
Vibrant Outlook Strongly develop Rest of India geographies, through Regional Reference Labs and cluster city approach for attractive markets Target to grow Evaluate best fit inorganic Deeper Penetration within the ahead opportunities in South & West North, East & Central Indian of the markets indust
Slide 31: Leveraging digital to make life easier for patient
Leveraging digital to make life easier for patient Logistics Lab Operations Business Digital Lab e-Commerce Mobile app Automation Automation Continuity Plan • Self Registration • Online test / health • Test booking, view • Field Executive • Totally integrated • ‘Multi Site’ model Kiosk for patients
Slide 32: Shareholding as of 31st March, 2021
Shareholding as of 31st March, 2021 29.6% FIIs, FPIS & Foreign Company 8.8% 55.2% Others Promoter and Promoter Group 6.4% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well 32
Slide 33: Vision, Mission & Values
Vision, Mission & Values VISION Customer First Be the most trusted healthcare partner, enabling healthier lives Ethics & Integrity VALUES Quality To be the undisputed market leader by providing accessible, affordable, timely and quality healthcare, Accountability diagnostics, applying insights and c
Slide 34: DLPL Strategy for future growth
DLPL Strategy for future growth 34
Slide 35: DLPL Strategy for future growth
DLPL Strategy for future growth 1 2 Strengthen Expansion in Existing Offering Operations Expand 4 3 management of Geographic hospital based expansion and clinical laboratories 35
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 & cluster approach standards diagnostic t
Slide 37: Consistent investments in R&D
Consistent investments in R&D DSIR recognized In House R&D unit R&D Collaboration with marquee Successful commercialization of with an experienced team of institutions tests research scientists and doctors Jawaharlal Nehru University for development of diagnostics kit for detection of mycobacterium
Slide 38: Genevolve: The Genomics initiative
Genevolve: The Genomics initiative GENEVOLVE brings the dawn of a new era of Genomic testing! Genevolve: Genomics division focuses on Genetic testing Offers wide range of key tests related to Oncogenomics, Neurogenomics, Rare disease & Pre-natal/ Post-natal New Tests New Tie-ups ONCOPATH • Sperm DNA
Slide 39: In-house adoption of Digital Histopathology
In-house adoption of Digital Histopathology Opportunities created by Digital Histopathology Reporting of Digital Breast cancer Panels using AI based • Enhanced access to second algorithms opinion, synchronous review Digital Histopathology for of slides remote routine • Enhanced quality of report
Slide 40: Highest Quality Standards in the Industry
Highest Quality Standards in the Industry 100+ Quality Digitally enabled Real time quality Risk based improvement solutions control quality assurance meetings on a daily implemented for monitoring framework basis with the quality audits network partners and trainings Best in the Industry CAP Profici
Slide 41: Best in class Logistics and Supply Chain management
Best in class Logistics and Supply Chain management Real Real time time service sample monitoring tracking Control tower Real time Field Automated Cash Productivity Executive collection and route tracking process planning with clients visibility 24
Slide 42: Enhanced Customer Experience in Home Collection
Enhanced Customer Experience in Home Collection Auto Routing engine to dynamically allocate the booking to nearest available phlebotomist Real time slot confirmation Real time phlebo visibility to to patient the patient Variable model which grows ECG at home service with business volume launched in
Slide 43: Key Awards & Recognition
Key Awards & Recognition Dr. Om Manchanda honoured EY Entrepreneur of The Data Quest Technology VC Circle Healthcare and awarded as ‘Healthcare ICICI Lombard & CNBC Summit 2013 – Best Year 2019 – Life Award 2015 – Excellence TV18 India Risk Personality of the Year, 2020’ Sciences & Healthcare in Imp
Slide 44: 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