Operating profit margin has declined from 29.45% to 28.39%, leading to 11.24% rise in operating profit to Rs 141.50 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 25.08% to 24.96%.   Employee cost increased from 15.93% to 16.77%.   Other expenses rose from 29.54% to 29.88%.   Selling and administration expenses rose from 12.99% to 14.02%.   

Other income rose 10.85% to Rs 14.3 crore.  PBIDT rose 11.21% to Rs 155.8 crore.  Provision for interest rose 17.50% to Rs 4.7 crore.  

PBDT rose 11.02% to Rs 151.1 crore.  Provision for depreciation rose 5.13% to Rs 20.5 crore.  

Profit before tax grew 12.01% to Rs 130.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 34.3 crore, compared to Rs 29.5 crore.  Effective tax rate was 26.26% compared to 25.30%.

Minority interest decreased 27.78% to Rs 1.30 crore.  Net profit attributable to owners of the company increased 11.37% to Rs 95.00 crore.  

Promoters' stake was 55.23% as of 30 September 2021 ,compared to 55.23% as of 30 September 2020 .  

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

Net sales (including other operating income) of Dr Lal Pathlabs has increased 58.33% to Rs 1105 crore.  

Operating profit margin has jumped from 25.15% to 29.91%, leading to 88.32% rise in operating profit to Rs 330.50 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.39% to 24.39%.   Employee cost decreased from 18.38% to 15.38%.   Other expenses rose from 30.08% to 30.32%.   Selling and administration expenses rose from 12.24% to 14.66%.   

Other income rose 16.87% to Rs 28.4 crore.  PBIDT rose 79.63% to Rs 358.9 crore.  Provision for interest rose 20.78% to Rs 9.3 crore.  

PBDT rose 81.99% to Rs 349.6 crore.  Provision for depreciation rose 6.15% to Rs 39.7 crore.  

Profit before tax grew 100.32% to Rs 309.90 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 79.9 crore, compared to Rs 39.2 crore.  Effective tax rate was 25.78% compared to 25.34%.

Minority interest increased 111.11% to Rs 3.80 crore.  Net profit attributable to owners of the company increased 98.94% to Rs 226.20 crore.  

Promoters' stake was 55.23% as of 30 September 2021 ,compared to 55.23% as of 30 September 2020 .  

Full year results analysis.

Net sales (including other operating income) of Dr Lal Pathlabs has increased 18.86% to Rs 1581.3 crore.  

Operating profit margin has jumped from 25.83% to 27.59%, leading to 26.98% rise in operating profit to Rs 436.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 22.45% to 25.12%.   Employee cost decreased from 18.24% to 17.31%.   Other expenses fell from 33.49% to 29.98%.   Selling and administration expenses fell from 13.00% to 12.92%.   

Other income fell 6.73% to Rs 51.3 crore.  PBIDT rose 22.33% to Rs 487.6 crore.  Provision for interest rose 4.58% to Rs 16 crore.  Loan funds remained nil.  Inventories declined from Rs 57.00 crore as of 31 March 2020 to Rs 42.60 crore as of 31 March 2021.  Sundry debtors were higher at Rs 66.70 crore as of 31 March 2021 compared to Rs 51.40 crore as of 31 March 2020.  Cash and bank balance rose to Rs 926.00 crore as of 31 March 2021 from Rs 569.10 crore as of 31 March 2020.  Investments declined from Rs 164.30 crore as of 31 March 2020 to Rs 59.30 crore as of 31 March 2021.  

PBDT rose 23.04% to Rs 471.6 crore.  Provision for depreciation rose 6.04% to Rs 77.2 crore.  Fixed assets declined from Rs 347.30 crore as of 31 March 2020 to Rs 312.00 crore as of 31 March 2021.  Intangible assets increased from Rs 77.20 crore to Rs 144.90 crore.  

Profit before tax grew 27.02% to Rs 394.40 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 97.9 crore, compared to Rs 82.9 crore.  Effective tax rate was 24.82% compared to 26.70%.

Minority interest increased 188.24% to Rs 4.90 crore.  Net profit attributable to owners of the company increased 29.08% to Rs 291.60 crore.  

Equity capital stood at Rs 83.30 crore as of 31 March 2021 to Rs 83.30 crore as of 31 March 2020.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 55.23% as of 31 March 2021 ,compared to 56.77% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 398.20 crore for year ended March 2021 from Rs 283.90 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 59.60 crore, compared to Rs 79.60 crore during the year ended March 2020. 

Other Highlights

Dr Lal PathLabs Limited (LPL) will acquire 100% equity of Suburban Diagnostics (India) Private Limited in an all cash deal for an enterprise value of 18.5x of FY22 audited EBITDA subject to a floor of Rs 925 Crore and a cap of Rs 1,150 Crore.

The deal will be funded through the existing cash reserves of the company. Dr Lal PathLabs revenue contribution from West region to go up from 10% to 24% post acquisition basis FY21.

Management commentary: Dr Arvind Lal, Padma Shri, Executive Chairman, Dr Lal PathLabs Limited said "Our joining hands with Suburban Diagnostics is a significant step in LPL's endeavor to expand our footprint in Western India. I am confident that our combined strengths and a similar DNA of both the companies- led by doctor promoters, will lead to new heights in serving our customers across Western India."

Dr. Om Manchanda, Managing Director, Dr Lal PathLabs Limited said "Suburban Diagnostics transaction is in line with our stated strategy of driving growth through inorganic route especially in West and South regions. This transaction has a strategic significance for us from a long term stand point."

Dr. Sanjay Arora, Founder, Suburban Diagnostics (India) Private Limited said "One of my missions has been to unburden healthcare and add value to medical outcomes. By coming together with DLPL, I will get the right platform to make this impact at a national level. The core of any healthcare organization is to add medical value while continuing to drive good governance and positive commercial success. As a medical professional, I will be able to concentrate on adding value to medical outcomes. This association with DLPL allows us to play to our strengths while continuing to add value to society."