Agency
new delhi, Nov 12
Metropolis Healthcare recently reported its unaudited consolidated financial results for the quarter ended September 30th, 2024. Metropolis Healthcare Ltd.’s consolidated net profit rose 31 percent in the second quarter of fiscal 2025, meeting analysts’ estimates.
According to the company’s statement, the diagnostics company’s profit stood at Rs 46.7 crore in the quarter ended September, compared with Rs 35.7 crore in the same period of the previous fiscal.
Looking at the Metropolis Healthcare’s performance, Brokerage firm Incred Equities revealed that Metropolis Healthcare (MHL) reported a healthy 2QFY25 performance of double-digit growth on revenue/EBITDA/PAT fronts QoQ and YoY.
“The revenue growth was led by strong growth in volume across patients (10% YoY) and tests (13.4% YoY). The volume growth was on account of the rise in market share (tier-1 and metro cities), expansion and deepening presence in newer geographies (tier-3 and below).
Revenue per patient grew by 5% YoY, partly led by price benefit and partly due to the mix. Truhealth grew by 23% YoY (now contributes 16% to revenue) and B2C revenue grew by 21% YoY to Rs1.94bn. Despite the 1.2% impact on EBITDA due to new labs and centres, the margin was at 25.7% (+50bp QoQ) partly led by gross margin improvement of 50bp,” the firm stated.
The firm also revealed that the gross margin may see some negative impact due to higher raw material costs (at new labs) for the initial two-to-three quarters due to lower volume. “Additionally, the new labs may lead to EBITDA margin dilution of up to 1% in FY25F. Despite this, the margin in FY25F-26F is expected to be in the range of 25-26% (23.4% in FY24). Beyond FY25F, margin improvement may be fast due to completion of lab expansion and new labs inching towards company-level margin (within 24 months),” it added.
Meanwhile, Tausif Shaikh, India Analyst – Pharma and Healthcare, BNP Paribas India highlighted that the volume growth on track and margin upscale will follow.
“METROHL’s 2QFY25 EBITDA missed Bloomberg consensus/ BNPPEe by 1%/4%. Revenue grew 13% y-y and was in-line. Patient/test volume grew 7%/8% y-y with 5-6% improvement in realisations. METROHL maintained its guidance of 13-15% revenue growth and 25 lab additions for FY25. We believe the benefits from lab additions and network expansion should largely be reflected from FY27 onwards, considering the time taken for new labs to realise their potential revenue.
We lower our FY25E EBITDA by 3% while our FY26/27 estimates are unchanged. Retain O/P,” Shaikh said.
In FY24, METROHL’s business mix improved, with a 51% contribution from the B2C segment (vs 46% in FY23), led by network expansion. We expect this trend to continue, he said.
