Results     08-Nov-22
Analysis
Dr Lal Pathlabs
NP down 24.53%
For the quarter ending sept 2022, consolidated net sales (including other operating income) of Dr Lal Pathlabs has increased 7.10% to Rs 533.8 crore compared to quarter ended sept 2021. Operating profit margin has declined from 28.39% to 26.94%, leading to 1.63% rise in operating profit to Rs 143.80 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 24.96% to 21.77%.   Employee cost increased from 16.77% to 17.03%.   Other expenses rose from 29.88% to 34.26%.   Selling and administration expenses fell from 14.02% to 13.92%.   

Other income fell 39.16% to Rs 8.7 crore.  PBIDT fell 2.12% to Rs 152.5 crore.  Provision for interest rose 131.91% to Rs 10.9 crore.  Loan funds rose to Rs 285.40 crore as of 30 September 2022 from Rs 41.40 crore as of 30 September 2021.  Inventories declined from Rs 55.20 crore as of 30 September 2021 to Rs 54.50 crore as of 30 September 2022.  Sundry debtors were higher at Rs 91.80 crore as of 30 September 2022 compared to Rs 67.30 crore as of 30 September 2021.  Cash and bank balance declined from Rs 997.80 crore as of 30 September 2021 to Rs 525.90 crore as of 30 September 2022.  Investments declined from Rs 128.00 crore as of 30 September 2021 to Rs 123.90 crore as of 30 September 2022.  

PBDT fell 6.29% to Rs 141.6 crore.  Provision for depreciation rose 89.27% to Rs 38.8 crore.  Fixed assets increased to Rs 805.20 crore as of 30 September 2022 from Rs 325.60 crore as of 30 September 2021.  Intangible assets increased from Rs 141.00 crore to Rs 554.70 crore.  

Profit before tax down 21.29% to Rs 102.80 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 30.4 crore, compared to Rs 34.3 crore.  Effective tax rate was 29.57% compared to 26.26%.

Minority interest decreased 46.15% to Rs 0.70 crore.  Net profit attributable to owners of the company decreased 24.53% to Rs 71.70 crore.  

Equity capital increased from Rs 83.30 crore as of 30 September 2021 to Rs 83.40 crore as of 30 September 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 55.05% as of 30 September 2022 ,compared to 55.23% as of 30 September 2021 .  
 

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

Net sales (including other operating income) of Dr Lal Pathlabs has declined 6.20% to Rs 1036.5 crore.  

Operating profit margin has declined from 29.91% to 25.21%, leading to 20.94% decline in operating profit to Rs 261.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 24.39% to 22.23%.   Employee cost increased from 15.38% to 18.11%.   Other expenses rose from 30.32% to 34.45%.   Selling and administration expenses fell from 14.66% to 13.88%.   

Other income fell 40.14% to Rs 17 crore.  PBIDT fell 22.46% to Rs 278.3 crore.  Provision for interest rose 108.60% to Rs 19.4 crore.  Loan funds rose to Rs 285.40 crore as of 30 September 2022 from Rs 41.40 crore as of 30 September 2021.  Inventories declined from Rs 55.20 crore as of 30 September 2021 to Rs 54.50 crore as of 30 September 2022.  Sundry debtors were higher at Rs 91.80 crore as of 30 September 2022 compared to Rs 67.30 crore as of 30 September 2021.  Cash and bank balance declined from Rs 997.80 crore as of 30 September 2021 to Rs 525.90 crore as of 30 September 2022.  Investments declined from Rs 128.00 crore as of 30 September 2021 to Rs 123.90 crore as of 30 September 2022.  

PBDT fell 25.94% to Rs 258.9 crore.  Provision for depreciation rose 88.16% to Rs 74.7 crore.  Fixed assets increased to Rs 805.20 crore as of 30 September 2022 from Rs 325.60 crore as of 30 September 2021.  Intangible assets increased from Rs 141.00 crore to Rs 554.70 crore.  

Profit before tax down 40.56% to Rs 184.20 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 53.6 crore, compared to Rs 79.9 crore.  Effective tax rate was 29.10% compared to 25.78%.

Minority interest decreased 68.42% to Rs 1.20 crore.  Net profit attributable to owners of the company decreased 42.79% to Rs 129.40 crore.  

Equity capital increased from Rs 83.30 crore as of 30 September 2021 to Rs 83.40 crore as of 30 September 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 55.05% as of 30 September 2022 ,compared to 55.23% as of 30 September 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 3.7% to Revenue in Q2 FY23.

In Q2 FY23, non-COVID business grew by 14.8% on YoY basis and Covid & Allied business fell by 61.3% on YoY.


Management Comments :
Dr. Arvind Lal, Executive Chairman said: “Dr Lal Pathlabs has been focused on strengthening its service capabilities and presence across multiple geographies, town classes and channels. I am happy to share with you that we have made good progress and will continue to make investments in making deeper inroads specially in Tier 2,3 & 4 cities. This will help further accelerate the shift from unorganized to organized. In parallel we are also investing a lot in building medical excellence programs and bringing into India cutting edge technology. I am happy to announce the launch of L-CORD; India’s first Centre of Excellence on Reproductive Diagnostics. Overall, we are encouraged by the recognition diagnostic industry has gained in the last few years especially post Covid pandemic and being leaders in the industry we continue to strengthen our position.”

Dr. Om Manchanda, Managing Director said: “Post Covid-19 pandemic, the Indian diagnostics industry has seen the entry of new players. This has further accelerated the business shift from unorganized to organized players. Our performance trajectory continues to improve backed by increased volume flow from wellness testing, especially post the Covid-19 outbreak in addition to incremental gains from new clusters developed across Western and Eastern region. Instead of increasing the test prices, we are focusing on driving volumes to achieve scale benefits, thereby maintaining our margins. I believe our strategy here is working well and we would like to replicate the same for Suburban to bolster our leadership position in the country. We have consistently created value for all our stakeholders throughout all these years and will endeavor to continue that, while growing and deepening our presence to touch more-and-more customers in tier II and tier III markets.”

Mr. Bharath Uppiliappan, Chief Executive Officer said: “During the quarter under review, we registered strong gains in our Non-Covid business, which grew at 14.8% Y-o-Y. Our growth was aided by a) Swasthfit - registered its highest ever revenue b) Super specialty and medical excellence programs like Genevolve and LACE. Suburban diagnostics continues to make progress across various key operating metrics. We continue to imbibe a lot of technology throughout the value chain. Our relentless efforts have been to improve productivity of our operating cycle to stay ahead of the competition while expanding our test menu to offer comprehensive test range. All in all, we are in for some interesting time ahead and Dr. Lal Pathlabs is well poised to garner incremental share across geographies, town classes, channels and test portfolio.”



Dr Lal Pathlabs : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202209202109Var.(%)202209202109Var.(%)202203202103Var.(%)
Net Sales (including other operating income)533.80498.407.101,036.501,105.00-6.202,087.401,581.3032.01
OPM (%)26.9428.39-145 bps25.2129.91-470 bps26.8627.59-73 bps
OP143.80141.501.63261.30330.50-20.94560.70436.3028.51
Other Inc.8.7014.30-39.1617.0028.40-40.1452.5051.302.34
PBIDT152.50155.80-2.12278.30358.90-22.46613.20487.6025.76
Interest10.904.70131.9119.409.30108.6030.2016.0088.75
PBDT141.60151.10-6.29258.90349.60-25.94583.00471.6023.62
Depreciation38.820.589.2774.739.788.16108.177.240.03
PBT102.80130.60-21.29184.2309.9-40.56474.9394.420.41
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO102.8130.6-21.29184.2309.9-40.56474.9394.420.41
EO Income00-00-00-
PBT after EO102.8130.6-21.29184.2309.9-40.56474.9394.420.41
Taxation30.434.3-11.3753.679.9-32.92124.697.927.27
PAT72.496.3-24.82130.6230-43.22350.3296.518.15
Minority Interest (MI)0.71.3-46.151.23.8-68.425.54.912.24
Net profit71.795-24.53129.4226.2-42.79344.8291.618.24
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations71.795-24.53129.4226.2-42.79344.8291.618.24
EPS (Rs)*8.6011.40-24.5315.5227.14-42.7941.3734.9818.24
* 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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