Key takeaways of the call

Covid 19 pandemic increased awareness around wellnessamong consumers.

Company witnessed evolving patient behavior with more people preferring sample collection at home compared to walk ins. Company scaled up its home collection services.

Company played a major role in scaling up RTPCR testing with 4.5 lakh COVID RTPCR tests conducted in Q4 FY21 and 14.9 lakh in FY21.

Going forward focus area will be deeper Penetration within the North, East & Central Indian markets, along with evaluating opportunities in South & West regions.

As cases from second wave of Covid 19 are slowly going down, Walk ins and B2B channels recovered.

High end portfolio continues to grow due to increased focus on key therapy areas.

Revenue grew 18.9% in FY21. Contribution from covidportfolioto FY21 revenues was 11.2%. COVID Allied business in Q4 FY21 was at 12.5% of total COVID portfolio.

Investments in FD, mutual fund and cash stands at Rs 985.9 Crore for FY21.Company added 15 new clinical laboratories in FY2.

Realization per patient in Q4 FY21 stood at Rs 733, however if impact of covid related patients are removed then its Rs 715 per patient. In stable scenario non covid revenue per patient will remain same.

In the Second wave of covid 19, most patients were unfortunately hospitalized, this impacted covid allied tests going up.

Outlook on non covid business recovery – impact last year was more severeon recovery, as management believes they are better prepared now and recovery will be quicker.

Home collection business growth depends on covid 19 wave, as the pandemic accelerates home collection business grow faster, and inversely revenue from walk ins are worst affected during lockdowns.

Company witnessed a volume decline of 3-4% in non covid business in FY21.

Company'scapacity of RTPCR tests has increased as number of locations company tests as of now are 17 labs across 13 states. Tests Company can do on daily basis arearound 25,000 samples at peak levels.

Management believes diagnostics business can get positive boost due to more health awareness.

In FY22 lab expansion and building of collection centers will continue. Network of Satellite labs will be build.

Company has tied up with large E-Pharmacies chains to scale up ecommerce business.It is also focusing on building its own ecommerce channel.

Company expects Covid allied test to go down as covid 19 cases goes down, however non covid business will pick up growth.

Other Highlights

Board Recommended final dividend of Rs 8 /- per equity share (80 % on a face value of Rs 10/- per share) for the year ended March 31, 2021.

Normalized EBITDA (after adjustment for stock based compensation & CSR cost) for Q4 FY21 is at Rs 129.5 Crore compared to Rs 64.2 Crore in quarter ended march 2020.

Cash & Investments stands at Rs 985.9 Crore, as on 31st Mar 21.

Non-COVID business grew at a growth rate of 26.8% in Q4 FY21. COVID portfolio contribution to total revenue declined to 11.2% in Q4 FY21 from 21.6% in Q3 FY21 due to regulations on pricing of RTPCR testing.

COVID Allied business in Q4 FY21 was at 12.5% of total COVID portfolio. The bundled test portfolio ‘Swasthfit' contributed 16.9% to revenue in Q4 FY21

Patient volumes grew by 33.3% in FY21 to 5.9 million.

Realization per patient in Q4 FY21 stood at Rs 733, higher as against to Rs 684 in Q4 FY20.

Company's target is to grow ahead of industry including deeper penetration within the North, East & Central Indian markets.

Management commentary: Dr. Arvind Lal, Executive Chairman "Even though the concluding quarter of FY21 was marked by the second wave of COVID-19 pandemic in India, we have ensured that our non-COVID business has shown growth. The COVID business started increasing by the end of the quarter due to the growing caseload of COVID cases. In our bid to sustain the market leadership position, we continue to expand test menu, penetrate into newer geographies and strengthen our hold in existing regions."

Dr. Om Manchanda, Managing Director "Just when everything was returning back to normalcy, India was unfortunately hit by the second wave of pandemic, although this time we were better prepared to manage the crisis given our inherent strengths and sheer experience. Our teams have worked relentlessly to serve all the patients during these unprecedented times and providing them with best quality diagnostic services at affordable prices."

Bharath Uppiliappan, Chief Executive Officer "Despite the emerging challenges faced in Q4, being a pan-India, organized diagnostics player, Dr. Lal PathLabs is well placed to grow both in COVID and non-COVID businesses. Our strategic efforts of expanding in the West and South continues, while our test menu is constantly getting enhanced. We are confident of realizing our growth aspirations going forward driven by increased demand for quality diagnostics."