Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Q1 FY17 Earnings Presentation
25 slides from Dr. Lal Pathlabs's earnings presentation, August 2021
Slide 1: Dr Lal PathLabs Limited Corporate Presentation Q1 FY17
Dr Lal PathLabs Limited Corporate Presentation Q1 FY17
Slide 2: Table of Contents
Table of Contents 1 Our Evolution 2 Dr Lal PathLabs at a glance 3 Investment Highlights 4 Key Q1 FY17 Highlights 5 Notes to Accounts 6 Q1 FY17 Financial Performance 7 Q1 FY17 Financial Trends 8 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s
Slide 3: Our Evolution
Our Evolution 1949 – 2005 2005 – 2010 2010 – 2016 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major 2005 onwards: Investment Investment by TA Associates S. K. Lal by WestBridge Capital Clinical labor
Slide 4: Dr. Lal PathLabs at a glance
Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 172 clinical labs (including National Reference Lab1 at Delhi),1,559 Patient Bio-chemistry Molecular Service Centers (PSCs) a
Slide 5: Experienced Management Team
Experienced Management Team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Whole-time Director and Chief Chairman and Managing Director Whole-time Director Executive Officer Dilip Bidani Manoj Garg Shankha Banerjee Chief Financial Officer Chief Human Resources Officer COO – Strategic
Slide 6: Investment Highlights
Investment Highlights Well-positioned in one of Scalable model integrated Established consumer the fastest-growing through centralized IT healthcare brand in segments of the Indian platform allows for diagnostic services healthcare industry network expansion Attractive operating Robust financial met
Slide 7: Indian Healthcare Services is a large growth opportunity
Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2026 India, highly underpenetrated market 7.6% GDP growth in FY161 INR 4.2 trillion Total Healthcare Expenditure as % of GDP (2013) FY14 India healthcare expenditure 17.1% ~68% Private expenditure on heal
Slide 8: Growth Drivers
INR 377 bn Diagnostic Services industry expected to grow to INR 600 bn by FY18 Diagnostic Services Industry Size CAGR: INR 600 bn Growth Drivers 16–17% INR 377 Increase in evidence-based 1 bn treatments 2 Demand for lifestyle diseases- related services to grow 2014–15E 2017–18P 3 Focus on preventive
Slide 9: Diagnostic Services industry remains highly fragmented
Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Centres, 48% Large Pan- India Chains 35-40% Diagnostic Regional Chain, 15% Chains 60- 65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Indust
Slide 10: Established consumer healthcare brand: Pillars of a Strong Brand
Established consumer healthcare brand in Diagnostic Services Pillars of a Strong Brand Accreditations Nationwide Network Fast Turnaround Time Accreditations from CAP, Coverage in metros, Tier 1 24x7 access including online NABL and ISO and Tier 2 cities access and home collection Centrally a
Slide 11: Hub and Spoke Model Network Expansion
Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Clinical No. of PSCs No. of PUPs Reference Laboratories Lab Clinical Clinical Lab Lab 1,559 172 1,340 5,668 164 PSC PSC PSC PSC 4,967 1,064 4,225 146 824 2,879
Slide 12: Integrated National Network backed by Centralized IT platform
Scalable Model integrated through centralized IT platform allows for network expansion (Cont’d) Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource Payables, receivables, inventory, ledgers etc. Planning (ERP) Scalability and connect
Slide 13: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn) Higher revenue realization per Consumer brand and network patient on account of: Increase in samples with patient expansion driving patient Growth in walk-in customers volumes growth volumes Higher
Slide 14: Multiple levers in place to drive next phase of growth
Multiple levers in place to drive next phase of growth Expand through Expand presence in Focus on hospital- strategic acquisitions existing markets based clinical labs and partnerships Cluster and focused geography approach M&A provides growth kicker Increase existing tie-ups Deepen presence
Slide 15: Strategies to deepen our presence
Strategies to deepen our presence South and North India East India West India Focus on Preventive healthcare retail Commitment to quality Online report; screening and chronic network and and reliability of data analytics / lifestyle disease home services management services collection Provide both l
Slide 16: Robust financial performance
Robust financial performance Total Revenue Revenue by Geography (FY16) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West Int’l Before ESOP 27.6% 27.9% 27.6% 26.7% South India 1% charge1 India 7% 7% PAT Margin 12.2% 14.3% 14.3% 16.8% East India RONW 34.3% 34.7% 33.8% 31
Slide 17: Robust financial performance (Cont'd)
Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 2945 3.4x 643 3.3x 3.3x 1861 3.1x 379 1143 86 2,302 763 1,482 1,057 548 215 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Cash and Bank Current Balance Investments Self funded growth on account of stro
Slide 18: Key Q1 FY17 Highlights
Key Q1 FY17 Highlights Aiming for sustainable robust growth backed by healthy fundamentals Strategy in action; network expansion driving incremental performance During Q1 FY17 LPL reported: Revenues grew 17.7% at Rs. 2,228.4 mn from Rs. 1,893.1 mn EBITDA stood increased 22.7% to Rs. 604.0
Slide 19: Q1 FY17 Financial Performance
Q1 FY17 Financial Performance Particulars (Rs. mn) Q1 FY17 Q1 FY16 Growth % Revenues 2,228.4 1,893.1 17.7% Total Expenditure 1,624.3 1,378.5 17.8% ESOP - 22.5 - EBITDA 604.0 492.1 22.7% Margins 27.1% 26.0% 110 bps PBT 599.3 468.3 28.0% Margins 26.9% 24.7% 220 bps PAT 401.7 309.8 29.7% Margins 18.0%
Slide 20: Q1 FY17 Financial Trends
Q1 FY17 Financial Trends Revenues Q1 FY17 revenues improved 17.7% YoY on the back of 15% increment in volumes and improvement in realisations 2,228 1,893 Realisation per patient has enhanced to Rs. 678, up 2.4% from Rs. 662 in Q1 FY16 Volume growth of 15% driven by; Increase in patient count
Slide 21: Q1 FY17 Financial Trends
Q1 FY17 Financial Trends PAT PBT growth during Q1 FY17 was at 28.0% Margins stood at 26.9% in the period 402 PAT showed 29.7% increase in Q1 FY17 310 Results reflect strategic progress realised against opportunity presented by the healthcare sector Q1FY16 Q1FY17 21
Slide 22: Annexures
Annexures • IPO transaction • Present Shareholding 22
Slide 23: IPO transaction
IPO transaction Issuer Dr. Lal PathLabs Limited (“LPL” or “the Company”) Transaction Type Initial public offering of up to 11,600,000 shares (Face Value Rs.10 each) Issue Open and Close Dates December 8, 2015 – December 10, 2015 Type of Offering Offer for Sale by existing shareholders Total
Slide 24: Shareholding as on June 30, 2016
Shareholding as on June 30, 2016 58.63 Promoters 1.87 MFs FPIs FI/Banks 26.45 5.83 Other Public Employee Trust 7.21 0.01 24
Slide 25: Contact us
Contact us About Dr Lal PathLabs Limited (LPL) 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 and