Results     02-Feb-23
Analysis
Dr Lal Pathlabs
non-COVID business grew by 9.1% YoY
For the quarter ending Dec 2022, consolidated Net sales (including other operating income) of Dr Lal Pathlabs has declined 1.51% to Rs 489.4 crore compared to quarter ended Dec 2021.   Operating profit margin has jumped from 21.98% to 23.09%, leading to 3.48% rise in operating profit to Rs 113.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 23.93% to 22.66%.   Employee cost increased from 19.58% to 19.68%.   Other expenses rose from 34.51% to 34.57%.   Selling and administration expenses rose from 12.94% to 14.16%.   

Other income fell 13.22% to Rs 10.5 crore.  PBIDT rose 1.81% to Rs 123.5 crore.  

PBDT rose 1.96% to Rs 114.4 crore.  Provision for depreciation rose 23.45% to Rs 37.9 crore.  

Profit before tax down 6.13% to Rs 76.50 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 22.9 crore, compared to Rs 23.3 crore.  Effective tax rate was 29.93% compared to 28.59%.

Minority interest decreased 22.22% to Rs 0.70 crore.  Net profit attributable to owners of the company decreased 7.68% to Rs 52.90 crore.  

Promoters’ stake was 55.05% as of 31 December 2022 ,compared to 55.23% as of 31 December 2021 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Dr Lal Pathlabs has declined 4.74% to Rs 1525.9 crore.  

Operating profit margin has declined from 27.44% to 24.53%, leading to 14.85% decline in operating profit to Rs 374.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 24.25% to 22.37%.   Employee cost increased from 16.69% to 18.61%.   Other expenses rose from 31.62% to 34.49%.   Selling and administration expenses fell from 14.13% to 13.97%.   

Other income fell 32.10% to Rs 27.5 crore.  PBIDT fell 16.31% to Rs 401.8 crore.  Provision for interest rose 55.74% to Rs 28.5 crore.  

PBDT fell 19.16% to Rs 373.3 crore.  Provision for depreciation rose 59.94% to Rs 112.6 crore.  

Profit before tax down 33.39% to Rs 260.70 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 76.5 crore, compared to Rs 103.2 crore.  Effective tax rate was 29.34% compared to 26.37%.

Minority interest decreased 57.45% to Rs 2.00 crore.  Net profit attributable to owners of the company decreased 35.73% to Rs 182.20 crore.  

Promoters’ stake was 55.05% as of 31 December 2022 ,compared to 55.23% as of 31 December 2021 .  


Full year results analysis.

Net sales (including other operating income) of Dr Lal Pathlabs has increased 32.01% to Rs 2087.4 crore.  Operating profit margin has declined from 27.59% to 26.86%, leading to 28.51% rise in operating profit to Rs 560.70 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 25.12% to 24.06%.   Employee cost increased from 17.31% to 17.48%.   Other expenses rose from 29.98% to 31.59%.   Selling and administration expenses rose from 12.92% to 13.63%.   

Other income rose 2.34% to Rs 52.5 crore.  PBIDT rose 25.76% to Rs 613.2 crore.  Provision for interest rose 88.75% to Rs 30.2 crore.  Loan funds rose to Rs 393.80 crore as of 31 March 2022 from Rs 40.30 crore as of 31 March 2021.  Inventories rose to Rs 52.40 crore as of 31 March 2022 from Rs 42.60 crore as of 31 March 2021.  Sundry debtors were higher at Rs 85.40 crore as of 31 March 2022 compared to Rs 66.70 crore as of 31 March 2021.  Cash and bank balance declined from Rs 926.00 crore as of 31 March 2021 to Rs 617.60 crore as of 31 March 2022.  Investments rose to Rs 65.50 crore as of 31 March 2022 from Rs 59.30 crore as of 31 March 2021 .  

PBDT rose 23.62% to Rs 583 crore.  Provision for depreciation rose 40.03% to Rs 108.1 crore.  Fixed assets increased to Rs 840.40 crore as of 31 March 2022 from Rs 371.50 crore as of 31 March 2021.  Intangible assets increased from Rs 85.40 crore to Rs 549.90 crore.  

Profit before tax grew 20.41% to Rs 474.90 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 124.6 crore, compared to Rs 97.9 crore.  Effective tax rate was 26.24% compared to 24.82%.

Minority interest increased 12.24% to Rs 5.50 crore.  Net profit attributable to owners of the company increased 18.24% to Rs 344.80 crore.  

Equity capital stood at Rs 83.30 crore as of 31 March 2022 to Rs 83.30 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 55.23% as of 31 March 2022 ,compared to 55.23% as of 31 March 2021 .  

Cash flow from operating activities increased to Rs 446.70 crore for year ended March 2022 from Rs 398.20 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 476.10 crore, compared to Rs 59.60 crore during the year ended March 2021.  

Other Highlights

Covid and Allied contributed 2% to Revenue in Q3 FY23.

In Q3 FY23, non-COVID business grew by 9.1% on YoY basis and Covid & Allied business fell by 80.4% on YoY.

During 9M FY23, non-COVID business grew by 15.9% on YoY basis and Covid & Allied business fell by 84.2% on YoY.


Management Comments :
Commenting on the results announcement, (Hony) Brig. Dr. Arvind Lal, Executive Chairman said: “I am happy to share the progress we are making across our 3 strategic pillars of geographical expansion, creating a differentiated super specialty portfolio and building the technology backbone for the future. Premised on our focus of deepening presence in high-potential Western region, I am pleased to announce that we have further bolstered our lab network by unveiling a new state-of-the-art Reference Lab in Mumbai. This is the first private lab in West India to have BSL-3 bio-containment lab inclusive of mycobacteriology, mycology and molecular biology departments making advanced[1]

  • testing widely accessible across Western India. This speaks leaps and bounds of our commitment to offer best-in-class services to our patients with accurate diagnosis at reasonable prices”

    Dr. Om Manchanda, Managing Director said: “We continue to focus on geographical expansion and strengthen our presence in Tier 2, Tier 3 towns. Our focus continues to take higher market share in West and South markets by leveraging technology and promoting high end super specialty test portfolio. We are committed to invest in technology, one of our key strategic pillar. We are using tools and technology to provide utmost convenience and distinguished front end experience to our customers and to automate processes across organization which are resulting in improvement in efficiency in key operating metrices and delivering higher people productivity. We have built integrated data solutions in the form of data lake to get various insights on patient, channel, geography behaviour. This helps us in identifying future growth levers in much more focused and data driven approach.”

    Mr. Bharath Uppiliappan, Chief Executive Officer said: “During the quarter under review, we served 6.5 million patients registering a total revenue of Rs. 489 crore. Covid & Allied tests declined 80% & contributed to just 2% of the revenue vs 12% LY. Non Covid revenue registered a growth of 16% on YTD basis. We have significantly scaled up our activations for L[1]

  • CoRD which is our Center of excellence for Reproductive diagnostics. During Q3 we organized 500+ activities across India on a single day, which is an achievement in itself. We continue to see traction in L-ACE our auto immunity center of excellence. Our bundled test program – SwasthFit’s continues to do well and it’s contribution continues to be in the range of 19-20%. We continue to invest in our digital initiatives to improve the patient journey for our D2C business as well as for our B2B partners.”



    Dr Lal Pathlabs : Consolidated Results
     Quarter endedYear to DateYear ended
    Particulars202212202112Var.(%)202212202112Var.(%)202203202103Var.(%)
    Net Sales (including other operating income)489.40496.90-1.511,525.901,601.90-4.742,087.401,581.3032.01
    OPM (%)23.0921.98111 bps24.5327.44-291 bps26.8627.59-73 bps
    OP113.00109.203.48374.30439.60-14.85560.70436.3028.51
    Other Inc.10.5012.10-13.2227.5040.50-32.1052.5051.302.34
    PBIDT123.50121.301.81401.80480.10-16.31613.20487.6025.76
    Interest9.109.10028.5018.3055.7430.2016.0088.75
    PBDT114.40112.201.96373.30461.80-19.16583.00471.6023.62
    Depreciation37.930.723.45112.670.459.94108.177.240.03
    PBT76.5081.50-6.13260.7391.4-33.39474.9394.420.41
    Share of Profit/(Loss) from Associates00-00-00-
    PBT before EO76.581.5-6.13260.7391.4-33.39474.9394.420.41
    EO Income00-00-00-
    PBT after EO76.581.5-6.13260.7391.4-33.39474.9394.420.41
    Taxation22.923.3-1.7276.5103.2-25.87124.697.927.27
    PAT53.658.2-7.90184.2288.2-36.09350.3296.518.15
    Minority Interest (MI)0.70.9-22.2224.7-57.455.54.912.24
    Net profit52.957.3-7.68182.2283.5-35.73344.8291.618.24
    P/(L) from discontinued operations net of tax00-00-00-
    Net profit after discontinued operations52.957.3-7.68182.2283.5-35.73344.8291.618.24
    EPS (Rs)*6.356.87-7.6821.8634.01-35.7341.3734.9818.24
    * EPS is on current equity of Rs 83.35 crore, Face value of Rs 10, Excluding extraordinary items.
    # EPS is not annualised
    bps : Basis points
    EO : Extraordinary items
    Figures in Rs crore
    Source: Capitaline Corporate Database


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