Vijaya Diagnostic Centre Ltd. · NSE:VIJAYA
Vijaya Diagnostic Centre — Q2 FY23 Earnings Presentation
41 slides from Vijaya Diagnostic Centre's earnings presentation, Nov 10, 2022
Slide 1: Vijaya Diagnostic Centre cover letter to exchanges
VIJAYA DIAGNOSTIC C RE November 10, 2022 To, To, Listing Department The Corporate Relations Department National Stock Exchange o In a Limited, BSE Limited, Exchange Plaza, Phiroz ieejeebhoy Towers, 25th Floor, Dalal Street Bandra Kurla Complex, Bandra (East), Mumbai- 400 051 Mumbai- 400 001 Company
Slide 2: Q2 & H1FY23 Earnings Presentation
Vijaya Diagnostic Centre Limited Q2 & H1FY23 Earnings Presentation November 10, 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: Q2 & H1FY23 Financial Performance
Q2 & H1FY23 Financial Performance
Slide 5: Q2 FY23 – Performance Snapshot
Q2 FY23 – Performance Snapshot Operational & Financial Highlights – Q2 FY23 COVID 2.63 Mn INR 35.0 Mn (3%) Tests INR 1,207.5 Mn 15.1% 67.6% 0.85 Mn Revenue Footfalls INR 1,172.4 Mn (97%) Non-COVID INR 487.4 Mn 113 EBIDTA Centres (opened 13) 40.4% EBIDTA Margin INR 233.3 Mn 95% Profit After Tax B2C R
Slide 6: Management comment
Management comment Commenting on the Q2FY23 results performance, Ms. Suprita Reddy, CEO at Vijaya Diagnostic Centre Ltd. said: “We have delivered an encouraging performance in Q2FY23 with our revenues increasing by 15.7% and EBITDA increasing by 22.2% on a Q-o-Q basis. Despite considerably expanding
Slide 7: Key Financial Highlights – Q2 & H1 FY23
Key Financial Highlights – Q2 & H1 FY23 (INR Mn) Revenue from Operations EBITDA & EBITDA Margin (%) 2,354 2,251 45.4% 38.2% 40.4% 45.9% 39.4% 1,127 1,207 1,044 1,080 886 511 399 487 Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22 H1 FY23 Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22 H1 FY23 Shift YoY (%) 7.1% -4.4% -4.7% -17.9%
Slide 8: Revenue Mix – Q2 & H1FY23
Revenue Mix – Q2 & H1FY23 (INR Mn) Radiology vs. Pathology Breakdown Non-COVID & COVID Allied Breakdown Radiology Pathology Non Covid Covid 10% 3% 3% 67% 64% 67% 68% 66% 90% 97% 97% 33% 36% 33% 32% 34% Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2 FY23 Non-COVID YoY (%) 15.1% COVID YoY (%
Slide 9: Q2 & H1FY23 – Key Developments
Q2 & H1FY23 – Key Developments Non-COVID Test Volumes (# in Million) Continued positive momentum witnessed in operational 0.87 0.90 0.79 performance 0.68 0.73 0.76 • The company registered growth on a month-on-month basis on the back of healthy traction seen in non-covid business across all segments
Slide 10: Q2 & H1FY23 - Financial and Operational Discussions (Y-o-Y)
Q2 & H1FY23 - Financial and Operational Discussions (Y-o-Y) • Revenue from Operations increased by 7.1% YoY to Rs. 1,207 Mn, Non-Covid Revenues grew by 15.1% YoY • During Q2FY23, the Company witnessed month-on-month improvement in business across all segments Financial that assisted revenue performa
Slide 11: Key Financial Highlights
Key Financial Highlights Cash flow from Operations / EBITDA (%) Cash & Cash Equivalents (INR Mn) 176.7% 2,493 2,493 164.0% 2,286 2,354 2,286 98.7% 97.2% 77.7% Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22 H1 FY23 Working Capital Days1 • Cash flow from Operations stood at Rs. 861
Slide 12: Key Operational Highlights
Key Operational Highlights Tests Performed (# in Million) Footfalls (# in Million) Tests / Footfalls (# in Million) 1.81 4.55 4.86 1.60 3.09 3.04 2.98 2.72 2.51 2.36 2.63 0.87 0.85 2.23 0.75 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1FY23 Q2 FY22 Q1 FY23 Q2 FY23 H1FY22 H1
Slide 13: Consolidated Profit & Loss Account – Q2 & H1 FY23
Consolidated Profit & Loss Account – Q2 & H1 FY23 (INR Mn) Particulars Q2 FY23 Q2 FY22 Y-o-Y Q1 FY23 Q-o-Q H1 FY23 H1 FY22 Y-o-Y Revenue from operations 1,207.5 1,127.1 7.1% 1,043.6 15.7% 2,251.1 2,353.9 -4.4% Cost of materials consumed 166.5 162.4 2.6% 130.3 27.8% 296.9 373.2 -20.5% Employee benefi
Slide 14: Company Overview
Win 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 113 state-of-the-art centres spread across 17 cities 40+ 113 Mission Years of Experience Centres Quality Experience in delivering Quality Diagnostic Service State-of-the-art Facilities
Slide 16: Our Journey
Our Journey Awarded one of the Best Healthcare Brands 2022 by The Economic Times Awarded Brand of the Won the Healthcare Leadership One of the earliest year in diagnostic Awards 2022 private diagnostic Vijaya Diagnostic Centre Recognized as one of the services by The CEO service providers to be Awar
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 #25 Samples #14 Customer (Walk-in) Home Collection B2B Hospitals & Labs Sample Flow Patient Flow Spokes #87 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 6 Advanced Software to Manage Clinical Data 20 CT Machines PET CT / Gamma machines 21 200+ 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 Healthcare Leadership Awards Pride of India Brands Award One of the Best Healthcare Indo Global Award for Company of the Year - Best Healthcare Brands 2022 2022 2022 Brands 2021 Healthcare Excellence Healthcare 2022 2021 2021 2021 2022 2022 Presented by Presented by Presented by P
Slide 28: Shareholding Pattern as of 30th Sep 2022
Shareholding Pattern as of 30th Sep 2022 Others FII’s 5.3% Marquee Institutional Investors Wasatch Advisors 23.9% Axis Mutual Fund Promoter & Promoter Nippon Life India Asset Management 55.0% group Aberdeen Standard Investments 15.8% Fidelity Group Abu Dhabi Investment Authority DSP Mutual Fund DIIs
Slide 29: Strategy Going Forward
VIJAYA es) 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 Karimnagar Expanding network through 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
oe CENTRE Annexure
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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