Krsnaa Diagnostics Limited · NSE:KRSNAA
Krsnaa Diagnostics — Q3 FY2023 Earnings Presentation
43 slides from Krsnaa Diagnostics's earnings presentation, Feb 13, 2023
Slide 1: Q3FY2023 Earnings Presentation cover letter
0 Kr D I AG N O STI CS ® LET'S DO GOOD... ® Date: 13th February, 2023 BSE Ltd. The National Stock Exchange of India Ltd. Corporate Service Department Exchange Plaza, 3rd Floor, pt Floor, P.J. Towers, Plot No. C/1, 'G' Block, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai 400 001 Mumbai 400 0
Slide 2: Q3 FY2023 Investors Presentation
One of INDIA’S LARGEST Differentiated Diagnostic Q3 FY2023 Investors Presentation Service Provider www.krsnaadiagnostics.com
Slide 3: Q3 FY2023 Performance
Q3 FY2023 Performance py ADDDD:)
Slide 4: Core Business Continues to Grow
Core Business Continues to Grow In Q3 FY23, Core Revenue up by 12.2% Y-o-Y , EBITDA margins remained strong at 25.3% and positive outlook considering recent tender won Rs. Million Total Revenue Core Business Revenue Covid-19 Revenue1 12.2% YoY (92.3)% 13 YoY 1,229 1,226 1,181 1,180 1,065 1,052 3 1 Q
Slide 5: Core Business Continues to Grow (9M FY23)
Core Business Continues to Grow In 9M FY23, Core Revenue up by 13.8% Y-o-Y, EBITDA margins at 25.2% and positive outlook considering recent tender won Rs. Million Total Revenue Core Business Revenue Covid-19 Revenue1 13.8% 3,532 368 (98.2)% YoY 3,539 YoY 3,472 3,104 7 9M FY22 9M FY23 9M FY22 9M FY23
Slide 6: Management Perspectives
Management Perspectives Commenting on the business, Ms. Pallavi Bhatevara, Managing Director, said: Commenting on the results, Mr. Yash Mutha, Executive Director, said: “Krsnaa Diagnostics has always been at the forefront when it comes to serving the “During the third quarter, Krsnaa registered Core
Slide 7: Quarterly Financial Performance
Quarterly Financial Performance (Rs. Million) Q3FY23 Q3FY22 Y-o-Y Growth Q2FY23 Q-o-Q Growth 9MFY23 9MFY22 Y-o-Y Growth Core Business 1,180 1,052 12.2% 1,226 (3.8)% 3,532 3,104 13.8% 1 Covid-19 Business 1 13 (92.3)% 3 (62.1)% 7 368 (98.2)% Revenue from Operations 1,181 1,065 10.9% 1,229 (3.9)% 3,539
Slide 8: Well Capitalized Balance Sheet to Fund the Growth
Well Capitalized Balance Sheet to Fund the Growth (Rs. Million) FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 Long Term Debt 556 937 1,400 1,680 331 342 263 Short Term Debt 452 772 1,112 638 79 280 469 Total Debt 1,008 1,709 2,512 2,318 410 622 732 Cash & Cash Equivalents 219 1,281 1,379 1,624 3,480 3,51
Slide 9: Business Overview
py DDD Business Overview
Slide 10: Track Record of Successful Fast-Pace Expansion
Track Record of Successful Fast-Pace Expansion 2022 2021 2021 Pan India Expansion Successful 2020 Centres – 664 Listing on the States – 12 Stock Exchanges Started operating 12 2019 centres in Himachal Pradesh in Public Expansion Private Partnership Expansion Centres – 2,000+ 2018 Centres – 1,300+ St
Slide 11: Extensive Footprint and Infrastructure
Extensive Footprint and Infrastructure Radiology Centres Pathology Labs 127 97 CT and MRI Centres Processing Labs 1,522 741 Tele-Reporting Centres Collection Centres 1,649 838 Radiology Centres Pathology Centres Note: All Information as on December 31, 2022 10
Slide 12: Only Company with Pan India Presence in Both Radiology and Pathology
Only Company with Pan India Presence in Both Radiology and Pathology FY2022 Regional Revenue Contribution Mix 6% 10% West South 23% North 61% East High Headroom to Grow ▪ Highest penetration across districts with presence in 70+ out of 700+ districts; still large underpenetrated market ▪ Government
Slide 13: Tapping Wide Spectrum of Market Unaddressed by Peers
Tapping Wide Spectrum of Market Unaddressed by Peers Krsnaa Remains Fastest Growing Diagnostic Service Provider and Continues to Tap Wide Spectrum of Underpenetrated Market Krsnaa is the Only Listed Company with Well Diversified Business Mix of Radiology and Pathology Rural Minimal Competition from
Slide 14: High Quality Diagnostic Services at Disruptive Prices
High Quality Diagnostic Services at Disruptive Prices Krsnaa Offers Tests at 60-80% Lower than Market Rates % from min Segment Test Player 1 Player 2 Player 3 Krsnaa price RDL CT Brain 4,500 4,500 3,500 973 (72)% RDL MRI Brain 8,000 8,250 7,000 Krsnaa Diagnostics offers high quality 2,209 (68)% PTH
Slide 15: India's Largest Tele-Radiology Reporting Hub
India’s Largest Tele-Radiology Reporting Hub Krsnaa Diagnostics hub and spoke model radiology facility in Pune is fully capable to process large volumes ▪ Scalable business model and enables wider penetration into tier II and tier III cities Patient Report delivered to Entry ▪ Analog images gets con
Slide 16: Krsnaa Competitive Advantages
Krsnaa Competitive Advantages Sustainable business model backed by underlying competitive advantages and well positioned to drive growth Revenue Visibility 1 ▪ Long-term of contracts (between 5-10 years) with inbuilt price escalation mechanism ensures higher and consistent visibility of revenues ▪ G
Slide 17: Strategic Pillars of Growth
Strategic Pillars of Growth 16
Slide 18: Growth Strategy
Growth Strategy Target is to achieve 2x growth in Revenues and 3x growth in Profits by end of FY2024 Tap the growing and underpenetrated diagnostic market by participating in new PPP tender Focus on timely and successful implementation of new projects Enhanced centre profitability with the maturing
Slide 19: Tapping PPP Opportunity (Projects Other than Mentioned in RHP)
Tapping PPP Opportunity (Projects Other than Mentioned in RHP) Assets to be Deployed 5 42 1 6 | 986 States CT Scan MRI Scan Labs | Collection centres Maharashtra Radiology Contract Bombay Municipal Cooperation Dhule Municipal Cooperation ▪ Awarded by Commissionerate Government of ▪ Awarded under Hin
Slide 20: Projects other than Mentioned in RHP: Implementation on Track
Projects other than Mentioned in RHP: Implementation on Track Radiology centres Growth To be Total Construction Construction State /Project Agreement Operational Operationalized in Centres Completed WIP Q4 FY23 Uttar Pradesh Executed 8 2 2 0 4 Delhi Executed 1 0 1 0 0 Rajasthan To be Executed 1 0 1
Slide 21: Projects Mentioned in RHP: Implementation on Track
Projects Mentioned in RHP: Implementation on Track Radiology centres Growth To be Construction Construction State Total Centres Operational Operationalized in Completed WIP Q4 FY23 Punjab 25 24 1 0 0 MCGM Mumbai 3 2 1 0 0 Himachal Pradesh 2 2 0 0 0 Karnataka 2 1 0 0 1 Somaiya Hospital Mumbai 1 1 0 0
Slide 22: Projects Mentioned in RHP: Implementation on Track
Projects Mentioned in RHP: Implementation on Track High quality infrastructure and services at disruptive prices creates market awareness and drives direct walk-ins Branding at Centres Branding at Centres World Class Infrastructure Strong Support from All Stakeholders 21
Slide 23: Centres Maturity Profile
Centres Maturity Profile Krsnaa Younger Portfolio Continues to Mature with Promising Future 64% 33% 20% 11% Gross Block* ROCE 16% -10% Gross Block* ROCE Gross Block* ROCE Matured Semi-Matured Newly Launched ▪ Expand B2C share of Business ▪ Increase awareness and visibility through digital marketing
Slide 24: Fully Geared to Disrupt the Growing Retail Market
Fully Geared to Disrupt the Growing Retail Market Retail Market Expansion Strategy Launch of specialized tests- Genomics Pathology Awareness through Tele Pick-Up-Points reporting (Camps and Corporates, Wellness & Krsnaa (Nursing Homes, Hospitals, small and mid- support – For Illness Packages) Busine
Slide 25: Expanding B2C Pathology Service Offerings
Expanding B2C Pathology Service Offerings Capitalizing on the extensive infrastructure of Pathology Diagnostics and extending it to end consumers 838 Pathology Centres 97 741 Processing Labs Collection Centres ▪ Expanding B2C pathology diagnostic service offerings at disruptive prices in 5 states ▪
Slide 26: Digital Initiatives
Digital Initiatives Enhancing Visibility, Awareness and Convenience Through Digital Initiatives Re-Launch Mobile Application Social Media Engagement ▪ Digitalize reports and provide Smart Health Reports ▪ Organize social media engagement campaigns on with next steps and recommendations health awaren
Slide 27: Enhancing Visibility and Awareness
Enhancing Visibility and Awareness 26
Slide 28: Experienced Leadership Team
Experienced Leadership Team Rajendra Mutha Pawan Daga Executive Chairman Pallavi Bhatevara, Yash Mutha Chief Financial Managing Director Whole Time Director Officer • 10+ years of experience in the • 8 years of experience in the • 12+ years of experience in the • 10+ years of experience in field of
Slide 29: Board of Directors – Diversified Experience and Background
Board of Directors – Diversified Experience and Background Chetan Desai Chhaya Palrecha Rajiva Ranjan Verma Independent Director Independent Director Independent Director • Practicing Chartered Accountant with a wide- • Chartered Accountant with 24 years of experience • Superannuated as Director Gen
Slide 30: Krsnaa Diagnostics Edge
Krsnaa Diagnostics Edge One of the Fastest Extensive Strong Brand Scalable and Disruptive Pricing Stakeholder Value Growing Geographic Equity Agile Business Creation Diagnostics Footprint Model Service Provider in the country ₹ Total Centre count Centres across India Well positioned to PPP is an ass
Slide 31: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on 31st December, 2022 Top Institutional Shareholders – 31st Dec, 2022 % Holding Promoters, Others, ICICI Prudential Pharma 5.1% 27.8% 26.4% Tata Mutual Fund 4.8% Aditya Birla Sun 4.0% Insurance Companies, 7.8% HSBC GLOBAL INVESTMENT FUNDS - ASIA EX 2.1%
Slide 32: Annual Performance Trends
Annual Performance Trends 31
Slide 33: Strong Performance Across All Key Performance Indicators
Strong Performance Across All Key Performance Indicators 47% 101% 46 2,071 23+ Mn Revenue CAGR PAT** CAGR Receivable Days Patients Served Centres 5Y (FY17-22) 5Y (FY17-22) 31st March, 2022 Last 5 Years Rs. 455 cr FY22 Revenue 14+ 70+ 17+ Mn Rs. 133 cr | 29% States Districts Locations No. of Tests an
Slide 34: FY2022: Strong Revenue and Net Profit Growth
FY2022: Strong Revenue and Net Profit Growth Core Business Continues to Deliver Stellar Revenue Growth of 70% Y-o-Y Strong EBITDA of Rs. 133 Cr with margins of 29% and Net Profit of Rs. 68 Cr, up by 117% Y-o-Y Rs. Million Total Revenue Core Business Revenue Covid-19 Revenue +15% +70% -78% YoY 4,555
Slide 35: Operational Performance Trend
Operational Performance Trend Strong Increase in Patient Count and Average Revenue Per Patient up from Pre-Covid-19 Levels Number of Patients* (in Mn) 58% Y-o-Y Tele-Reporting Patients (in Mn) 40% Y-o-Y 4.31 3.42 2.85 2.45 2.73 2.42 FY20 FY21 FY22 FY20 FY21 FY22 Average Revenue Per Patient** (in Rs)
Slide 36: Revenue and Profit After Tax Growth Trend
Revenue and Profit After Tax Growth Trend Revenue (in Mn) + 94% + 47% 4,555 CAGR Since Inception CAGR Last 5 Years 3,965 2,584 2,098 1,081 668 366 464 175 274 6 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Gross Profit Margin Profit After Tax* (in Mn) + 101% 684 CAGR Last 5 Years 315 125 1
Slide 37: Well Diversified Business Mix
Well Diversified Business Mix Radiology and Pathology Revenue grew by 5.5 times and 8.2 times respectively in Last 5 Years Remains one of the Fastest Growing Diagnostics Service Provider Rs. Million Radiology Revenue* Pathology Revenue excluding Covid-19 +40% 2,488 CAGR +52% CAGR 1,748 1,673 1,620 1
Slide 38: Strong Cash Collection and Cash Flow Conversion
Strong Cash Collection and Cash Flow Conversion Receivables Days EBITDA to Cash Flow Conversion* 120% 97 98 114% 116% 87 101% 69 80% 46 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 • Krsnaa has built a strong cash flow generating business model backed by strong cash flow conversion cycle and ef
Slide 39: Well Capitalized Balance Sheet to Fund the Growth
Well Capitalized Balance Sheet to Fund the Growth (Rs. Million) FY18 FY19 FY20 FY21 FY22 Long Term Debt 556 937 1,400 1,680 331 Short Term Debt 452 772 1,112 638 79 Total Debt 1,008 1,709 2,512 2,318 410 Cash & Cash Equivalents 219 1,281 1,379 1,624 3,480 Net Debt / (Net Cash) 789 428 1,133 694 (3,0
Slide 40: Annual Financial Performance – Delivering Consistent Growth
Annual Financial Performance – Delivering Consistent Growth Y-o-Y Growth CAGR Growth (Rs. Million) FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY21-22 FY17-22 Core Business 668 1,081 2,098 2,584 2,492 4,236 70.0% 45% Covid-19 Business - - - - 1,473 319 (78.4)% - Revenue from Operations 668 1,081 2,098
Slide 41: Balance Sheet
Balance Sheet Assets (In Million) FY21 FY22 Equity and Liabilities (In Million) FY21 FY22 Non-Current Assets 3,563.91 5,420.06 Total Equity 2,318.65 6,844.09 Equity share capital 64.95 156.99 Property, plant and equipment 3,072.80 3,833.79 Instruments entirely equity in nature 2,423.90 0.00 Capital
Slide 42: Factsheet
Factsheet Key Valuation Metrics 10-Feb-23 47% 101% NSE Ticker KRSNAA Revenue CAGR PAT CAGR BSE Ticker 543328 5Y (FY17-22) 5Y (FY17-22) Share Price (in Rs) 425 Number. of Shares ( in Cr) 3.14 45% 52% Equity Value (Rs. Cr) 1,334 Radiology Revenue Pathology Revenue Gross Borrowings (Rs. Cr) – 31 Dec, 2
Slide 43: Contact Information
Contact Information This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Krsnaa Diagnostics’ future business developments and economic perfor