Dr. Lal Pathlabs Limited · NSE:LALPATHLAB
Dr. Lal Pathlabs — Investor Presentation (February 2019)
33 slides from Dr. Lal Pathlabs's investor presentation, Feb 15, 2019
Slide 1: Exchange filing cover letter under Regulation 30
February 15, 2019 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: Disclosure of inf
Slide 2: Dr. Lal PathLabs Limited Corporate Presentation
Dr. Lal PathLabs Limited Corporate Presentation February 2019
Slide 3: Disclaimer
2 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 present
Slide 4: Table of Contents
3 Table of Contents 1 Company Overview 2 Investment Highlights 3 Q3 FY19 Highlights & Financial Performance 4 LPL Strategy for future growth 5 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined
Slide 5: Company Overview
Company Overview • Our Evolution • Dr. Lal PathLabs at a glance • Experienced Management team
Slide 6: Our Evolution
5 Our Evolution 1949 – 2005 2005 – 2010 2010 – 2018 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major 2005: onwards: Investment Investment by TA Associates S. K. Lal by WestBridge Capital Clinical la
Slide 7: Dr. Lal PathLabs at a glance
6 Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 193 clinical labs (including National Reference Lab1 at Delhi and Regional Bio-chemistry Molecular Ref Lab at Kolkata), 2,1
Slide 8: Experienced Management team
7 Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Whole-time Director and Chief Chairman and Managing Director Whole-time Director Executive Officer Ved Prakash Goel Bharath Uppiliappan Shankha Banerjee Chief Financial Officer CEO India Business Chief Growth
Slide 9: Investment Highlights
Investment Highlights
Slide 10: Investment Highlights
9 Investment Highlights Well-positioned in one of Scalable model integrated Established consumer the fastest-growing through centralized IT healthcare brand in segments of the Indian platform allows for diagnostic services healthcare industry network expansion Attractive operating Robust financial m
Slide 11: Indian Healthcare Services is a large growth opportunity
10 Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2022 India, highly underpenetrated market USD 2,483 bn India GDP in FY201 Total Healthcare Expenditure as % of GDP (2015) 16.8% USD 273 billion 11.2% FY20 India healthcare expenditure 8.9% 8.2% 5.6% 5.
Slide 12: Growth Drivers
11 INR 596 bn Diagnostic Services industry expected to grow to INR 802 bn by FY20 Diagnostic Services Industry Size CAGR:16% INR 802.1 bn Growth Drivers INR 596.1bn 1 Increase in evidence-based treatments 2 Demand for lifestyle diseases- related services to grow 2017-18E 2019-20P 3 Focus on preventi
Slide 13: Diagnostic Services industry remains highly fragmented
12 Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Centres, 48% Large Pan- India Chains 35-40% Diagnostic Regional Chain, 15% Chains 60- 65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Ind
Slide 14: Established consumer healthcare brand in Diagnostic Services
13 Established consumer healthcare brand in Diagnostic Services Pillars of a Strong Brand Accreditations Nationwide Network Fast Turnaround Time Accreditations from CAP, Coverage in metros, Tier 1 24x7 access including online NABL and ISO and Tier 2 cities access and home collection Centrall
Slide 15: Scalable model allows for network expansion
14 Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Clinical No. of PSCs No. of PUPs Reference Laboratories Lab 2,153 Clinical Clinical Lab Lab 193 5,668 5,624 1,759 189 1,559 1,340 PSC PSC PSC PSC 172 5,021 1
Slide 16: Integrated National Network backed by Centralized IT platform
15 Scalable Model integrated through centralized IT platform allows for network expansion Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource Payables, receivables, inventory, ledgers etc. Planning (ERP) Scalability and connectivity
Slide 17: Collection network
16 Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab & Regional Ref. Lab Clinical Labs (Testing/Collection) Patient Service Centers Pickup Points Home Walk-ins Collection Hospitals Doctors Labs Walk-ins Diverse, lar
Slide 18: Attractive operating metrics
17 Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn) Q3 FY19 Revenues increased on Consumer brand and network account of : Increase in samples with patient Marked gains in patient expansion driving patient volumes growth volumes at 12.1% volumes I
Slide 19: Multiple levers in place to drive next phase of growth
18 Multiple levers in place to drive next phase of growth Expand through Expand presence in Focus on hospital- strategic acquisitions existing markets based clinical labs and partnerships Cluster and focused geography approach M&A provides growth kicker Increase existing tie-ups Deepen prese
Slide 20: Strategies to deepen our presence
19 Strategies to deepen our presence South and North India East India West India Focus on Preventive healthcare retail Commitment to quality Online report; screening and chronic network and and reliability of data analytics / lifestyle disease management home services services. Bundling of tests col
Slide 21: Robust financial performance
20 Robust financial performance Total Revenue Revenue by Geography (FY18) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West India, Others, Before ESOP 26.7% 27.2% 26.3% 26.6% 6.8% 1.2% charge1 South India, 6.7% PAT Margin 16.8% 17.1% 16.3% 17% RONW 31.4% 29.1% 24.7% 22
Slide 22: Robust financial performance (Cont'd)
21 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 8.5x 3,882 5,506 6,537 6.6x 4,715 4,058 5.8x 2,836 1822 1448 1046 FY17 FY18 9M FY19 FY17 FY18 9M FY19 Cash and Bank Current Balance Investments Self funded growth on account of strong cash flo
Slide 23: Q3 & 9M FY19 Highlights & Financial Performance
Q3 & 9M FY19 Highlights & Financial Performance
Slide 24: Q3 FY19 Snapshot
23 Q3 FY19 Snapshot 2,925 mn ~10.2 mn 11.3% Samples Revenues INR Processed 706 mn ~4.28 mn 16.3% Patients Normalised INR Tested EBITDA 461 mn ~4,316 27% PAT INR Total Employees* *As on March 31, 2018,
Slide 25: Key Performance Highlights
24 Key Performance Highlights Consistent growth in patient and samples volumes for Q3 at 12.1% and 17.3% respectively driving revenue growth for the quarter During Q3 FY19: • Revenues gained 11.3% YoY to Rs 2,925 million following 12.1% increase in patient volumes • Number of patients tested stood a
Slide 26: Financial Table
25 Financial Table Particulars (Rs. mn) Q3 FY19 Q3 FY18 Growth % 9M FY19 9M FY18 Growth % Total Revenue 2,925 2,627 11.3% 9,023 7,901 14.2% Total Expenditure 2,269 2,061 6,749 5,901 EBITDA 656 566 15.9% 2,274 2,000 13.7% Adj for stock based comp. & CSR Cost 50 41 130 95 Normalised operating EBITDA 7
Slide 27: Financial Highlights
26 Financial Highlights Revenues All figures in Rs. mn Q3 saw 11.3% improvement in revenues at 9,023 Rs. 2,925 million. This was the result of: 7,901 Consistent momentum in volumes with 2,925 • 2,627 12.1 % growth • Gains in tests per patient from 2.28 to 2.38 Q3FY19 realisation per patient stoo
Slide 28: Financial Highlights
27 Financial Highlights PBT All figures in Rs. mn 679 Q3 PBT was at Rs. 679 million vs. Rs. 2,314 555 1,993 555 million last year Q3 PBT margin was at 23.2% from 21.1% last year 9M PBT came in at Rs. 2,314 million with margins of 25.6% Q3 FY18 Q3 FY19 9M FY18 9M FY19 PAT Q3 PAT came in at Rs
Slide 29: LPL Strategy for future growth
LPL Strategy for future growth
Slide 30: DLPL Strategy for future growth
29 DLPL Strategy for future growth 1 Strengthen Existing Operations Boosting quality & Improving Grow basic Online initiatives Investment in reliability turnaround times radiology practice and data analytics branding standards for testing 2 Expansion in Offering Improve breadth Preventive Chronic &
Slide 31: Annexures
Annexures • Shareholding as of 31st December, 2018
Slide 32: Shareholding as of 31st December, 2018
31 Shareholding as of 31st December, 2018 56.9% 8.4% Promoter and Promoter Mutual Group Funds* 16.7% 18.0% FII Others *Mutual Funds includes Alternate Investment Funds as well
Slide 33: Contact us
32 Contact us About Dr Lal PathLabs Limited (DLPL) For further information please contact: Dr Lal PathLabs Limited is one of India’s leading consumer healthcare brand in diagnostic services. Ved Goel / Rajat Kalra It has an integrated nationwide network, where patients Dr. Lal PathLabs Limited and h
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