Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Q1 FY2024 Earnings Presentation
47 slides from Dr. Lal Pathlabs's earnings presentation, Aug 8, 2023
Slide 1: Exchange filing letter: Corporate Presentation for Q1 FY24
August 08, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relationship Department Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Symbol: LALPATHLAB Scrip Code: 539524 Sub: Corporate
Slide 2: Dr Lal PathLabs Limited (DLPL) Corporate Presentation July 2023
Dr Lal PathLabs Limited (DLPL) Corporate Presentation July 2023
Slide 3: 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 4: Table of Contents
Table of Contents Company Overview 4 Investment Highlights 9 Q1 FY24 Highlights 24 DLPL Strategy for Future Growth 32 DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined contingencies and risks. Dr. Lal Pa
Slide 5: Corporate Overview
Corporate Overview Dr. Lal PathLabs at a glance Our Evolution Dr. Lal PathLabs overview Experienced Management team
Slide 6: Dr Lal PathLabs – At a Glance
Dr Lal PathLabs – At a Glance India’s Leading 70+ years of 15% 13% 120% & Trusted experience in 3 Year Revenue 3-Year Equity Dividend Diagnostics the field of CAGR Normalised for FY 22-23 Company diagnostics EBITDA CAGR Largest* diagnostics chain in the country 24% 277 5,102 with PAN India presence
Slide 7: Our Evolution
Our Evolution 1949 – 2005 2010 – 2015 2020 onwards Strong position in Pan India Player – Foundation 2005 – 2010 North India, building 2015 -2020 Acquired Suburban, network in other Building South geographies Higher contribution from Ecosystem Building Rest of India, capabilities for Commissioned sta
Slide 8: Dr. Lal PathLabs overview
Dr. Lal PathLabs overview Test Menu Established consumer Pan-India integrated coverage healthcare brand in diagnostic with 277 clinical labs Routine testing Specialized testing services (including National Reference Lab at Delhi and Regional Ref • Bio-chemistry • Molecular • Proteomics Catalogue of
Slide 9: 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 Group Chief Financial Officer Shankha Banerjee Munender Soperna Jai Prakash Meena Manoj Garg
Slide 10: Investment Highlights
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Slide 11: Investment Highlights
Investment Highlights Demonstrated high scalability, integrated through centralized IT platform for Largest consumer healthcare network expansion Best-in-class and consistent brand in diagnostic services, financial track record with with unmatched reputation healthy return ratios Well poised to garn
Slide 12: Indian Healthcare Services is a large and growing opportunity
Indian Healthcare Services is a large and growing opportunity Total Healthcare Expenditure as % India’s expected population in 20251 Government Expenditure on healthcare (as % of GDP) in FY253 of GDP (2019)4 India 3.0% China 5.4% Russian Federation 5.7% Expected India’s Out of pocket healthcare indu
Slide 13: Drivers of India diagnostic services market
Drivers of India diagnostic services market Diagnostic Services Industry Size Growth Drivers Expected 14% CAGR ~Rs. 1,360 Bn ~Rs. 710 Bn FY21 FY26E Demand for lifestyle Increase in Focus on Screening, early detection, and monitoring diseases evidence- preventive Rapid reduce downstream costs related
Slide 14: Diagnostic Services industry continues to remain highly fragmented
Diagnostic Services industry continues to remain highly fragmented Standalone Centres 46% Pan-India Chains ~35% Highly Diagnostic Fragmented 17% Chains Industry Regional Chains ~65% 37% Hospital Based Labs Largely fragmented and unorganized Source: Industry Data, Centrum Institutional Research Repor
Slide 15: Established reputed consumer healthcare brand in Diagnostic Services
Established reputed consumer healthcare brand in Diagnostic Services Lab/PSCs Pillar of a Strong Brand Sample Collection Home Online Accreditations from Registration CAP, NABL and ISO Offline Centrally Accreditations Walk-in administered customers surveillance Diverse and programs account for Na
Slide 16: 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 17: Digital Touchpoints across patient journey
Digital Touchpoints across patient journey Customers Digital Point Of Sale Sample Collection Logistics Lab Processing Report Engine Applications • Patient App/Website – Order • Phlebo App – Scan lab • Live tracking of samples, • Reporting & Analysis • Historical Trends Booking, Reports, Find Nearby
Slide 18: Leveraging digital infrastructure to make life easier for patient
Leveraging digital infrastructure to make life easier for patient New Website Launch Wallet • New age user intuitive website. • Senior Citizen Wallet: Wallet points on every • Responsive , mobile friendly web designs. booking for Senior Citizen Patients. • SEO friendly for improved customer reach •
Slide 19: Control Tower Implementation
Control Tower Implementation “Control Tower” implementation provides a complete visibility of Patient samples across the sample processing lifecycle. The insights will help the business users to reduce delay and improve processing leading to better customer service. Control Tower Teams Key Highlight
Slide 20: Quality Control Laboratory excellence
Quality Control Laboratory excellence Capability building Test Recommendation engine NABL 133 implementation D L Shah Gold Award for LPL Project ‘Improving Laboratory Performance by developing an in-house automated process to Risk Based Internal Audits monitor Quality control’ PROJECT NEEV- self lea
Slide 21: Scalable Model integrated through centralized IT & digital platforms allows for network expansion
Scalable Model integrated through centralized IT & digital platforms allows for network expansion Integrated National Network… Network Expansion No. of Clinical Laboratories* No. of PSCs No. of PUPs 277 277 5,102 4,731 10,938 231 10,599 3,705 9,247 National Reference Laboratory Regional Reference La
Slide 22: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue Non-covid Revenue (Mn) (Mn) (INR Cr.) (INR Cr.) CAGR: 15% CAGR: 21% CAGR: 13% CAGR: 25% 27.3 26.9 72.3 2087 2017 65.9 1954 20.3 1691 49.7 1581 1257 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Consumer brand a
Slide 23: Robust financial performance
Robust financial performance Total Revenue South Others EBITDA*,PAT and Return on Net Worth (INR Cr.) India (INR Cr./%) 2% 6% CAGR: 13% West Delhi & Normalised EBITDA* Normalised PAT** India NCR 2087 2017 16% 32% 600 1581 Revenue by 528 Geography 463 East 369 India (FY23) 297 297 14% Rest of North I
Slide 24: 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 10.0x 10.2x 10.1x generation Attractive fixed asset turnover ratio given asset- 450.9 light model 278.8 Current net cash position and in
Slide 25: Q1 FY24 Highlights
WIDENING “eo °6@ HORIZONS D2 Lat Pathlals “ : SERVING Q1 FY24 Highlights
Slide 26: Q1 FY24 – Key Performance Highlights
Q1 FY24 – Key Performance Highlights INR 528 Cr +9.7% Non-Covid Revenue INR 154 Cr 28.4% INR 541 Cr +7.6% Normalised EBITDA* Margin Total Revenue INR 84 Cr 15.4% INR 112 Cr 22% PAT Margin Swasthfit Revenue Contr. * Normalised EBITDA excl. RSU and CSR cost Classification: Restricted DR . LAL PATHLABS
Slide 27: Overview of Dr Lal PathLabs
Overview of Dr Lal PathLabs Established Established consumer healthcare brand in diagnostic services brand Pan-India 277 clinical labs (including National Reference Lab at Delhi and Well-positioned integrated Regional Reference labs at Kolkata, Bangalore & Mumbai), 5,102 in one of the coverage Patie
Slide 28: Financials
Financials Particulars (Rs. Cr.) Q1 FY24 Q1 FY23 Gr % FY'23 Revenue 541 503 7.6% 2,017 Operating Expenditure 387 377 1,489 Normalised EBITDA 154 125 22.7% 528 Normalised Margins 28.4% 25.0% 26.2% RSU & CSR cost 8 8 38 EBITDA 146 118 24.4% 490 Margins 27.0% 23.4% 24.3% Other Income 14 8 42 Depreciati
Slide 29: Financial Highlights – Consolidated
Financial Highlights – Consolidated All figures in Rs. Crore Revenue Normalised EBITDA* PBT PAT Non Covid Covid 8% 541 154 503 13 21 125 117 10% 81 Margin 84 482 528 12% Margin Margin Margin Margin 58 Margin 25% 28% 16% 22% 15% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 * Normal
Slide 30: Operating Highlights
Operating Highlights No. of Clinical Laboratories No. of PSCs No. of PUPs +61 +2,007 +3,943 277 277 4,731 5,102 9,247 10,599 10,938 216 231 3,705 3,095 6,995 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 No. of Patients (Mn) No. of Samples (Mn) +39% +52% 27.3 26.9 66.0 72.3 19.4 20.3 4
Slide 31: Management Commentary
Management Commentary Commenting on the performance, (Hony) Brig. Dr. Commenting on the performance, Dr. Om Manchanda, Commenting on the performance, Mr. Bharath Arvind Lal, Executive Chairman said: Managing Director said: Uppiliappan, Chief Executive Officer said: “As a frontrunner in organized dia
Slide 32: Shareholding as of June, 2023
Shareholding as of 30 June, 2023 23.7% FPIS, FDI & NRIs 55.0% Promoter and Promoter 15.4% Group Others 5.9% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well Classification: Restricted 31 DR . LAL PATHLABS LIMITED 31
Slide 33: DLPL Strategy for future growth
DLPL Strategy for future growth
Slide 34: Vision, Mission & Values
Vision, Mission & Values Be the most trusted Customer First healthcare partner, enabling healthier VISION lives Ethics & Integrity To be an undisputed market Quality leader by providing accessible, VALUES affordable, timely and quality healthcare, diagnostics, applying MISSION Accountability insight
Slide 35: Vibrant Outlook
Vibrant Outlook Evaluate best fit inorganic Strongly develop Rest of India opportunities in South, and leverage geographies, through Regional expertise of recently acquired Reference Labs and cluster city Suburban brand in West approach for attractive markets Target to grow ahead of the industry Dee
Slide 36: DLPL Strategy for future growth
DLPL Strategy for future growth Significantly leverage the Enhance high-end test portfolio of strong digital infrastructure super-specialty & bundled test • Deployed AI, data analytics, machine learning • Created specialty verticals like Genevolve to focus on tools to elevate the patient experience
Slide 37: Genevolve: Genetic Testing Division
Genevolve: Genetic Testing Division Onco Genomics Successful completion of 3 years of Launch Wide Test offering with 160+ New Tests Neuro Genomics Wellness Genomics & Pharmacogenomics are upcoming segment Direct reach of 3000+ Doctors Reproductive Genomics Dedicated Business Development team for Gen
Slide 38: Summary highlights – Technical Lab Operations
Summary highlights – Technical Lab Operations LACE and the centre Only lab in India to introduce the First lab to introduce the of excellence in Relaunched the Lipid Donor derived cell free DNA ONCOPRO TSO500 Reproductive panels incorporating the (LIQUID BIOPSY) technique for Comprehensive Genomic m
Slide 39: Savings of >1.3 million aliquots and >5210 tons of plastic waste
Savings of >1.3 million aliquots and >5210 tons of plastic waste in our lab – a strong commitment to sustainability Dr. Lal Pathlabs’ leadership vision focuses on continuous We reduced the need for aliquots by 93% by replacing our previous system configuration1,2 with new, improvement while maintain
Slide 40: Key ESG Initiatives
Key ESG Initiatives Use of Solar E-billing and e- Use of Electric Panels for Power; payment receipt bikes for sample addition of 50 KW to reduce paper collection solar plant at NRL usage Data centre Water saving virtualization to through treatment prevent heat and & reuse of CO2 emission wastewater
Slide 41: Cyber Security Capability
Cyber Security Capability Data Loss • State-of-the-art data loss prevention technology to monitor and prevent the disclosure of information Prevention • Data classification platform for information labeling and handling according to severity of data • Rights management system to enable persistent da
Slide 42: Highest Quality Standards in the Industry
Highest Quality Standards in the Industry Best in the Industry CAP Proficiency Testing Score at 99.5% for National Reference Lab Consistently high EQAS Performance Testing Score at 98.5% for Satellite Labs CAP accreditation 2 labs, NABL accreditation 36 Labs 100+ Quality Digitally enabled Real time
Slide 43: Enhanced Customer Experience in Home Collection
Enhanced Customer Experience in Home Collection Real time 30 minutes slot visibility & booking D2C- Automated lead management for the patient Digital ID card & ratings of Phlebo Auto Routing engine to dynamically to the patient allocate the booking to nearest available phlebotomist Variable model wh
Slide 44: Key Awards & Recognition
Key Awards & Recognition Top 100 Global Most Loved Gold Award Best Brands GAPIO Excellence in Workplace Business Standard Star QCI – D. L. Shah Quality Awards - SME of the year 2022 Healthcare 2022 Diagnostics Award 2023 2022 2022 Diagnostic Chain of the Year – West Financial Express CFO of CSR Awar
Slide 45: Key Awards & Recognition
Key Awards & Recognition Data Quest Technology VC Circle Healthcare Computerworld Dr. Om Manchanda honoured and EY Entrepreneur of The Year Award 2015 – Excellence in Summit 2013 – Best Honors Laureate awarded as ‘Healthcare Personality 2019 – Life Sciences & Implementation of Diagnostic Company Pro
Slide 46: 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 an
Slide 47: Thank you
WIDENING “eo °6@ HORIZONS D2 Lat Pathlals “ : SERVING Thank you