Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Q1 FY21 Earnings Presentation
37 slides from Dr. Lal Pathlabs's earnings presentation, Aug 5, 2020
Slide 1: Cover letter to stock exchanges: Corporate Presentation Q1 FY21
A □ gust 5, 2020 The National Stock Exchange of India Limited The Bombay Stock Exchange Limited Exchange Plaza, Corporate Relationship Department Plot No. C/1, G Block, Phiroze Jeejeeboy Towers Sandra Kurla Complex, Sandra (E) Dalal Street, Mumbai - 400051 Mumbai - 400001 Subject: Corporate Presenta
Slide 2: Dr. Lal PathLabs Limited (DLPL) Corporate Presentation August 2020
Dr. Lal PathLabs Limited (DLPL) Corporate Presentation August 2020
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 FY21 highlights & financial performance 21 DLPL strategy for future growth 33 DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined contingenci
Slide 5: Company Overview
Company Overview Dr. Lal PathLabs at a glance Our Evolution Dr. Lal PathLabs overview Experienced Management team 4
Slide 6: Dr. Lal PathLabs – At a Glance
Dr. Lal PathLabs – At a Glance 12% 15% Zero Professionally managed operations; 7 decades of experience in the world of NO. 1 3 Year Revenue 3-Year PAT Net Debt BRANDED diagnostics CAGR CAGR NATIONAL 60% Well diversified outside home market of ‘Delhi NCR’ DIAGNOSTICS ~67% CHAIN WITH Revenue Contribut
Slide 7: Our Evolution
Our Evolution 1949 – 2005 2010 – 2015 Strong position in 2005 – 2010 2015 onwards North India, Foundation building network in other Higher contribution Building geographies from Rest of India, capabilities for Commissioned state scale up Investment by TA Associates 1949: Founded by Dr. Major S.
Slide 8: Dr. Lal PathLabs overview
Dr. Lal PathLabs overview Established consumer healthcare brand in diagnostic services Routine testing Specialized testing Bio- Molecular Pan-India integrated coverage with 216 clinical labs chemistry diagnostics (including National Reference Lab1 at Delhi and Regional Ref Lab at Kolkata), 3,095 Pat
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 Chief Financial Officer Shankha Banerjee Munender Soperna Rajat Kalra Manoj Garg Company Sec
Slide 10: Investment Highlights
| Y 4 a | Investment Highlights
Slide 11: Investment Highlights
Investment Highlights Well-positioned in one of the Established consumer healthcare fastest-growing segments of the brand in diagnostic services Indian healthcare industry Attractive operating metrics and Scalable model integrated through multiple levers in place to drive next centralized IT platfor
Slide 12: Indian Healthcare Services is a large growth opportunity
Indian Healthcare Services is a large growth opportunity India’s expected FY20 India healthcare Private expenditure on India GDP in FY201 population in 2022 expenditure healthcare in 2015 India, highly Total Healthcare Expenditure as % of GDP (2015) underpenetrated 17.1% market 11.2% 8.9% 8.2% 5.6%
Slide 13: Diagnostic Services industry expected to grow to INR 924 Bn in 2022
INR 596 Bn Diagnostic Services industry expected to grow to INR 924 Bn in 2022 Diagnostic Services Industry Size Growth Drivers INR 924 Bn INR 596.1 Bn Increase in Demand evidence-based for lifestyle treatments diseases-related services to grow 2017-18E 2021-22P Focus on Screening, early detection,
Slide 14: Diagnostic Services industry remains highly fragmented
Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Large Standalone Pan-India Centres, 48% Chains 35-40% Diagnostic Chain, 15% Regional Chains 60-65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Industry
Slide 15: Established consumer healthcare brand in Diagnostic Services
Established consumer healthcare brand in Diagnostic Services Pillar of a Strong Brand Medico Marketing Doctor Online Accreditations from Call Centre Query Handling Registration CAP, NABL and ISO Accreditations Offline Centrally administered surveillance programs Online Customer Lab Coverage in
Slide 16: Scalable Model integrated through centralized IT platform allows for network expansion
Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Reference Clinical No. of PSCs No. of PUPs Lab Laboratories 6,995 216 6,426 3,095 Clinical Clinical 5,624 Lab Lab 2,569 2,153 200 PSC PSC PSC PSC 193 • Centrali
Slide 17: Scalable Model integrated through centralized IT platform allows for network expansion
Scalable Model integrated through centralized IT platform allows for network expansion Integrated National Network… …backed by Centralized IT platform which fully integrated network Enterprise Resource Planning (ERP) System Payables, receivables, inventory, ledgers etc. Scalability and connectiv
Slide 18: 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 19: Attractive operating metrics
Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR Cr.) CAGR: 13.0% CAGR: 17.2% CAGR: 12.2% 1,330.4 19.4 47.7 1,203.4 17.6 41.8 1,056.9 15.2 34.7 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY20 Revenues increased on account of : Consumer brand and network
Slide 20: Robust financial performance
Robust financial performance Total Revenue South Others 3% EBITDA*,PAT and Return on Net Worth (INR Cr.) India (INR Cr./%) West 6% CAGR: 12.2% India 8% 313.2 331.1 1,330.4 1,203.4 278.3 1,056.9 East 227.6 India Revenue by 171.8 200.5 14% Geography (FY20) Delhi & NCR FY18 FY19 FY20 Rest of 40% EBITDA
Slide 21: Robust financial performance (Cont’d)
Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents Times (INR Cr.) Self funded growth on account of strong cash flow 8.5x generation 7.5x 580.0 6.6x 522.9 Attractive fixed asset 405.8 turnover ratio given asset- light model Current net cash position 184.8 164
Slide 22: Q1 FY21 Highlights & Financial Performance
Q1 FY21 Highlights & Financial Performance 21
Slide 23: Q1 FY21 Snapshot
Q1 FY21 Snapshot* Normalised Revenue PAT EBITDA INR 266.0 Cr INR 54.0 Cr INR 28.4 Cr Patients Samples Tested Processed ~ 3.5 mn 7.9 mn ~ * Q1 results have been adversely impacted due to COVID-19 pandemic and subsequent lockdown 22
Slide 24: Overview of Dr. Lal PathLabs
Overview of Dr. Lal PathLabs Established brand Pan-India integrated Varied Offerings Unique and successful coverage operating model 216 clinical labs (including National Reference Lab at Catalogue of 455 test panels, Scalable model integrated Established consumer Delhi and Regional Reference 2,537 p
Slide 25: Q1 FY21 Monthly Trends
Q1 FY21 Monthly Trends Revenues (in Rs. crore) Patients Tested (in million) • Performance was impacted in April and May -61% -12% +14% -62% -25% +3% 2020 due to extended lockdowns caused by 114 123 1.6 1.7 1.6 1.7 COVID-19 pandemic 113 108 99 1.2 • Business momentum improved from June 2020 onwards b
Slide 26: Key Performance Highlights
Key Performance Highlights During Q1 FY21: • Revenues decreased by 20.6% Y-o-Y at Rs. 266 crore • Patient volumes declined by 28.4% Y-o-Y at 3.5 million • Normalised EBITDA (after eliminating the impact of stock based compensation & CSR) came in at Rs. 54 crore • Profit After Tax stood at Rs. 28.4 c
Slide 27: Financials
Financials Particulars (Rs. Cr.) Q1 FY21 Q1 FY20 Growth % FY20 Total Revenue 266.0 335.2 -20.6% 1330.4 Total Expenditure 217.6 240.1 986.8 EBITDA 48.4 95.1 -49.1% 343.6 Adj for Stock based comp. & CSR Cost 5.6 3.9 22.0 Normalised operating EBITDA 54.0 99.0 -45.5% 365.6 Normalised Margins 20.3% 29.5%
Slide 28: Financial Highlights
Financial Highlights All figures in Rs. Crore 335.2 • Revenue declined in Q1 FY21 by 20.6% to Rs. 266.0 crore. This was due to : 266.0 – Volumes which declined by 28.4% and – Decline in tests per patient from 2.42 to 2.27 Revenue • Realisation per patient in Q1 FY21 came in at Rs. 760, higher as com
Slide 29: Financial Highlights
Financial Highlights All figures in Rs. Crore 89.4 • PBT for Q1 FY21 came in at Rs. 38.1 crore vs. Rs. 89.4 crore in the corresponding quarter of last year, representing a decline of 57.4% 38.1 PBT • Q1 FY21 PBT margin stood at 14.3%, as against 26.7% in the same period of last year Q1 FY20 Q1 FY21
Slide 30: Management Commentary
Management Commentary Commenting on the results announcement, (Hony) Brig. Dr. Arvind Lal, Executive Chairman “This was a difficult quarter, not just for Dr. Lal Pathlabs, but for the entire nation and the economy. Business was impacted adversely, with volumes getting hit. However, we are confident
Slide 31: Vibrant Outlook
Vibrant Outlook Strongly develop Rest of India geographies, through Kolkata National Laboratory and cluster city approach for attractive markets Target to grow Evaluate best fit inorganic Deeper Penetration within the ahead opportunities North, East & Central Indian of the markets industry Higher co
Slide 32: Leveraging digital to make life easier for patient
Leveraging digital to make life easier for patient Logistics Lab Operations Business Digital Lab e-Commerce Mobile app Automation Automation Continuity Plan • Self Registration • Online test / health • Test booking, view • Field Executive • Totally integrated • ‘Multi Site’ model Kiosk for patients
Slide 33: Shareholding as of 30th June, 2020
Shareholding as of 30th June, 2020 20.0% FIIs 14.7% 56.3% Others Promoter and Promoter Group 9.0% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well 32
Slide 34: DLPL Strategy for future growth
DLPL Strategy for future growth 33
Slide 35: DLPL Strategy for future growth
DLPL Strategy for future growth 1 2 Strengthen Expansion in Existing Offering Operations 4 3 Expand management of Geographic hospital based expansion and clinical laboratories 34
Slide 36: DLPL Strategy for future growth
DLPL Strategy for future growth Expand management of hospital Strengthen Existing Operations Expansion in Offering Geographic expansion based and clinical laboratories Boosting quality & reliability Improve breadth of Tap incremental contracts for Focus city approach standards diagnostic testing in
Slide 37: 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