Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q2 FY2024 Earnings Presentation
34 slides from Metropolis Healthcare's earnings presentation, Nov 4, 2023
Slide 1: Intimation of Investor Presentation to exchanges
Ref: MHL/Sec&Legal/2023-24/66 Date: November 04, 2023 To, To, Head, Listing Compliance Department Head, Listing Compliance Department, BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1. G Block, Dalal Street, Mumbai – 400 001. Bandra – Kurl
Slide 2: Reaching Out Responsibly – Investor Presentation November 2023
Reaching Out RESPONSIBLY Investor Presentation – November 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Metropolis Healthcare Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Q2 & H1FY24 Performance
Q2 & H1iFY24 Performance...
Slide 5: Q2FY24 Performance Snapshot
Q2FY24 Performance Snapshot Total Revenue Core Business* Revenue Rs. 309 Crores Rs. 302 Crores 2.7% YoY 13.4% YoY Core Business* Patient Vol. Core Business* RPP 3.1 Mn Rs. 975 10.4% YoY 3.0% YoY Core Business* Test Vol. Core Business* RPT 6.2 Mn Rs 488 8.4% YoY 5.0% YoY EBITDA Margin Reported EBITDA
Slide 6: H1FY24 Performance Snapshot
H1FY24 Performance Snapshot Total Revenue Core Business* Revenue Rs. 586 Crores Rs. 573 Crores 0.9% YoY 12.9% YoY Core Business* Patient Vol. Core Business* RPP 5.8 Mn Rs. 989 9.8% YoY 3.1% YoY Core Business* Test Vol. Core Business* RPT 11.6 Mn Rs 494 8.2% YoY 4.7% YoY EBITDA Margin Reported EBITDA
Slide 7: Q2FY24 Key Highlights
Q2FY24 Key Highlights Core Business* Revenue grew at 13.4% Core business revenues grew at 13.4% with 10.4% Patient volume growth and 3.0% 01 RPP growth. 8.4% on account of Test volume & 5.0% on account of RPT B2C revenues grew by 16% B2C revenues grew by 16% for Q2FY24 Y-o-Y with Patient Volume grow
Slide 8: Core Business Revenue continue to grow by double digit
1a. Core Business Revenue continue to grow by double digit.. Core Business PPP Contracts Covid PCR & Covid Allied Total Revenues (incl. Hi-Tech) One of the large PPP Contract ended on 8th February 2023 +0.9% +12.9% -66% 573 41 32 580 586 507 +13.4% +2.7% 302 21 -58% 300 309 266 13 11 5 1 2 Q2FY23 Q2
Slide 9: Growth driven by Patient Volume and RPP
1b. …predominantly by Patient Volume growth @ 10% & RPP growth @ 3% Core Business No. of Patient Visits (In Mn.) Core Business Revenue Per Patient (In Rs.) +9.8% +3.0% +3.1% 5.3 5.8 947 975 960 989 +10.4% 2.8 3.1 Q2FY23 Q2FY24 H1FY23 H2FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Core Business No. of Tests (In
Slide 10: B2C revenue grew by 16%
2. B2C revenue grew by 16% & B2C revenue in Mumbai grew by 23% Revenue Mix Across Segments B2C Revenue (Rs. Crs) B2C contributes 52% of the total revenue +16% 15% 7% B2C revenues grew by 16% Y-o-Y with Volume 158 136 47% growth of 14% & RPP growth of 2% Q2FY23 Q2FY24 52% 41% 38% B2C revenue in Mumba
Slide 11: B2B revenue grew by 12%
3. B2B revenue grew by 12% & B2B wellness revenue grew by 55% Revenue Mix Across Segments B2B Revenue Mix (Rs. Crs) +12% 15% 7% B2B contributes 41% of revenues for Q2FY24 120 107 Q2FY23 47% Q2FY24 52% B2B revenues grew by 12% for Q2FY24 Y-o-Y 41% 38% with Volume growth of 8% & RPP growth of 4% Q2FY2
Slide 12: Premium Wellness revenue grew 27%
4a. Premium Wellness revenue grew @ 27% with 21% volume growth Population for Diagnostic Industry Total Premium Wellness Revenue +29% 6% 85 94% +27% 65 44 34 Wellness Population Illness Population Q2FY23 Q2FY24 H1FY23 H1FY24 ✓ Revenue from Premium Wellness has grown by 27% on Y-o-Y Our focus is to c
Slide 13: Specialized Test revenue grew 12% with 9% volume growth
4b. Specialized Test revenue grew @ 12% with 9% volume growth Offers more than 3,000 Innovation & test menu Divided over multiple specialized tests and uniquely expansion is the heart of specialty 75 tests added in specialized subspecialty segments crafted profiles to meet diagnostic & each year New
Slide 14: Expanding Network from 307 to 488 towns in 6 months
5a. Expanding Network…from 307 to 488 towns in last 6 months Laboratory Network - MHL Service Network - MHL Hitech Network Total Network Rationalization ARC Period Lab network Service network +242 Centers Total 187 Total 3,934 + 12 labs Third Party PSCs Owned PSCs 3,854 3,612 Laboratory Network 20 8
Slide 15: Network expansion with focus on company-level margins in 2 years
5b. …with focus on achieving company level margins in 2 years Network Expansion*^ Lab Maturity Cycle 42 labs EBIDTA Margin Period 167 Profile 155 141 119 124 125 0-12 months -5% FY19 FY20 FY21 FY22 FY23 H1FY24 12-18 months +5% Labs Added NA 5 1 16 14 12 18-24 months +15% EBIDTA NA 0.3% 0.3% 1.0% 1.2
Slide 16: Reported EBITDA Margins at 24.3%
6. Reported EBIDTA Margins @ 24.3% EBIDTA dilution on account of Network Expansion in Q2FY24 @1.2% EBIDTA dilution on account of Network Expansion in Q2FY23 @0.8% Net impact on account of dilution 0.4% 27.0% -0.4% -1.1% -1.1% 24.3% -0.1% Q2FY23 Dilution on account Dilution on account Dilution on acc
Slide 17: Specialized and Premium Wellness revenue contribution continues to grow
Specialized and Premium Wellness revenue contribution continues to grow Strong Brand Equity across markets & Doctors Trust and Reliance on Metropolis helps us grow our Specialized & Premium Wellness segment faster than the Industry Q2FY23 Q2FY24 Specialized (Rs. Crs) Premium Wellness (Rs. Crs) Core
Slide 18: Diversified Revenue contribution across Geographies
Diversified Revenue contribution across Geographies; North outpacing competition Continue to focus on strengthening the Brand in Focus cities through increase in B2C share while improving the share of Seeding and Other cities through a healthy mix of B2B and B2C driven by large Test menu Q2FY23 Q2FY
Slide 19: Q2FY24 Consolidated Profit & Loss Statement
Q2FY24 Consolidated Profit & Loss Statement Profit & Loss Statement (Rs. Crs.) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y Revenue from Operations 308.5 300.3 2.7% 277.1 11.3% 585.6 580.2 0.9% Cost of operations 230.7 217.4 210.1 440.8 425.6 EBIDTA (before CSR and ESOP) 77.8 83.0 -6.2% 67.0
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-23 Mar-23 Equity & Liabilities (Rs. Crs.) Sep-23 Mar-23 Non-current assets 1206.4 1198.8 Equity 1049.4 990.8 Property, Plant and Equipment 145.0 137.2 Equity Share capital 10.2 10.2 ROU Assets 171.6 173.4 Other equity 1036.3 978.0 Goodwill 454.7 454.7
Slide 21: Consolidated Abridged Cash flow statement
Consolidated Abridged Cash flow statement Cash Flow Statement (Rs. Crs) H1FY24 H1FY23 Profit Before Tax 87.3 97.6 Adjustments for Depreciation and other items 60.1 52.6 Operating profit before working capital changes 147.4 150.3 Changes in working capital -16.7 19.7 Cash generated from operations 13
Slide 22: Steady Focus on Balance Sheet continues
Steady Focus on Balance Sheet continues Debtor Days Working Capital Days 31 32 Key Highlights 18 14 ✓ Debtor days as on Sep-23 stood at 32 days as compared to 31 days as on Mar-23 ✓ Cash & Cash Equivalents stood healthy at Mar-23 Sep-23 Rs. 108 crs as of Sep-23 Mar-23 Sep-23 OCF to EBIDTA Cash and C
Slide 23: Metropolis 3.0: Opportunity
Metropolis 3.o : Opportunity
Slide 24: Key Pillars of Metropolis 3.0 Strategy
Key Pillars of Metropolis 3.0 Strategy 01. Strengthening the core 02. Expanding to adjacencies Increase market share in the core geographies with Expanding into adjacencies like basic radiology and expanding presence and penetration in newer allied services geographies with Focus on Specialised & We
Slide 25: Addressable market expected to increase to ~Rs. 21K Cr by FY26
Addressable market is expected to increase to ~Rs. 21K Cr by FY26… Addressable market size FY23 FY26 CAGR ~INR 101K Cr ~INR 134K Cr 10% Radiology: ~INR 43K Cr Radiology: ~INR 58K Cr Radiology: 10% Indian diagnostics market Pathology: ~INR 76K Cr Pathology: 10% Pathology: ~INR 58K Cr ~INR 58K Cr ~INR
Slide 26: Metropolis to grow faster than the Industry
…Metropolis to grow faster than the Industry Strategy to Win Higher reliability of the Metropolis Brand with Specialized Doctor Network Large Network (including current expansion) to Increase the product suite for Premium help grow faster in Focus Cities and strengthen Wellness and create a sticky c
Slide 27: Customer Centric Front End Digital Infrastructure
Customer Centric Front End Digital Infrastructure Website orientation & development Revamped the Website for ease of customer queries & usage 01 Achieved 1 Mn plus website traffic Digital brand building 02 2.5x growth in brand reach and 4x growth engagement via Influencer campaigns WhatsApp campaign
Slide 28: Creating a Digital Transformation for business to grow
Creating a Digital Transformation for business to grow Enhanced Plans Benefits Productivity • A Fully Scaled Application Programming • Digital Leadership Rapid Scalability Interface (API) - Centric Tech Core • Full-fledged Customer Relationship • Faster go-to-market Management (CRM) stack for Servic
Slide 29: International business
International business Our International Presence B2B Locations Kenya Zambia Ghana Tanzania Uganda via Franchisee Year of Inception Year of Inception Year of Inception Year of Inception Year of Inception 2013 2015 2014 2018 2022 Samples brought at GRL from 9 6 4 3 1 10+ Countries Labs/Diagnostics La
Slide 30: Metropolis – Certified Great Place to Work
Metropolis – Certified Great Place to Work Metropolis is the First Indian Diagnostic Organization for getting Great Place To Work certification. EMPLOYEE BRAND- Our Identity Attributes that Build Our Culture Trust, Openness, Innovation, Compassion & Growth Mindset Communicate Amplify with Talent Com
Slide 31: Metropolis ESG Goals
Metropolis ESG’ Goals Well identified ESG Focus Areas and assessments are Emission Goals for a Greener Tomorrow created as per the materiality matrix based on the GRI, SASB and SDG Frameworks. Our first Business • Carbon Neutrality by 2043 Responsibility Sustainability Report (BRSR) released as • 45
Slide 32: Key ESG Initiatives 2023-24
Key ESG Initiatives 2023-24 Emissions & Energy Occupational Employee Health & Safety Quality of Care and Patient Satisfaction • Launch e-bike initiative for logistics and home visit • Partner with educational institutes, establish OHS • Actively conduct NPS surveys aiming for a consistent technician
Slide 33: CSR at Metropolis
CSR at Metropolis Too Shy to Ask (TSTA) MedEngage Preventive health Care Project DSEU*( Delhi Skills Outreach and Digital Program Programme Entrepreneurial University) • Metropolis Foundation, the CSR • The annual MedEngage Scholarship • Under the CSR intiiatives, • DSEU has collaborated with arm of
Slide 34: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Rakesh Agarwal - CFO Mr. Shogun Jain / Mr. Sagar Shroff Email Id – rakesh.agarwal@metropolisindi
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