Results     28-Jul-23
Analysis
Dr Lal Pathlabs
NP up 43.15%
For the quarter ending June 2023, consolidated Net sales (including other operating income) of Dr Lal Pathlabs has increased 7.62% to Rs 541 crore compared to quarter ended June 2022. Operating profit margin has jumped from 23.37% to 27.02%, leading to 24.43% rise in operating profit to Rs 146.20 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.72% to 20.91%.   Employee cost increased from 19.26% to 19.35%.   Other expenses fell from 34.65% to 32.72%.   Selling and administration expenses fell from 13.85% to 13.77%.   

Other income rose 73.49% to Rs 14.4 crore.  PBIDT rose 27.66% to Rs 160.6 crore.  Provision for interest fell 5.88% to Rs 8 crore.  

PBDT rose 30.09% to Rs 152.6 crore.  Provision for depreciation fell 2.23% to Rs 35.1 crore.  

Profit before tax grew 44.35% to Rs 117.50 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 33.9 crore, compared to Rs 23.2 crore.  Effective tax rate was 28.85% compared to 28.50%.

Minority interest increased 100% to Rs 1.00 crore.  Net profit attributable to owners of the company increased 43.15% to Rs 82.60 crore.  

Promoters’ stake was 55.01% as of 30 June 2023 ,compared to 55.05% as of 30 June 2022 .  

Full year results analysis.

Net sales (including other operating income) of Dr Lal Pathlabs has declined 3.38% to Rs 2016.9 crore.  Operating profit margin has declined from 26.86% to 24.29%, leading to 12.63% decline in operating profit to Rs 489.90 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 24.06% to 22.17%.   Employee cost increased from 17.48% to 18.67%.   Other expenses rose from 31.59% to 34.87%.   Selling and administration expenses rose from 13.63% to 13.98%.   

Other income fell 20.57% to Rs 41.7 crore.  PBIDT fell 13.31% to Rs 531.6 crore.  Provision for interest rose 24.17% to Rs 37.5 crore.  Loan funds declined from Rs 532.70 crore as of 31 March 2022 to Rs 419.50 crore as of 31 March 2023.  Inventories declined from Rs 52.40 crore as of 31 March 2022 to Rs 33.80 crore as of 31 March 2023.  Sundry debtors were lower at Rs 70.80 crore as of 31 March 2023 compared to Rs 85.40 crore as of 31 March 2022.  Cash and bank balance rose to Rs 665.40 crore as of 31 March 2023 from Rs 617.60 crore as of 31 March 2022.  Investments rose to Rs 149.90 crore as of 31 March 2023 from Rs 65.50 crore as of 31 March 2022 .  

PBDT fell 15.25% to Rs 494.1 crore.  Provision for depreciation rose 38.95% to Rs 150.2 crore.  Fixed assets declined from Rs 840.40 crore as of 31 March 2022 to Rs 404.00 crore as of 31 March 2023.  Intangible assets increased from Rs 543.50 crore to Rs 906.00 crore.  

Profit before tax down 27.58% to Rs 343.90 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 102.8 crore, compared to Rs 124.6 crore.  Effective tax rate was 29.89% compared to 26.24%.

Minority interest decreased 60% to Rs 2.20 crore.  Net profit attributable to owners of the company decreased 30.71% to Rs 238.90 crore.  

Equity capital increased from Rs 83.30 crore as of 31 March 2022 to Rs 83.40 crore as of 31 March 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 55.03% as of 31 March 2023 ,compared to 55.23% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 456.00 crore for year ended March 2023 from Rs 446.70 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 44.60 crore, compared to Rs 476.10 crore during the year ended March 2022.  

Other Highlights

Board declared an interim dividend of Rs 6 per equity share (@ 60% on a face value of Rs 10 per share) for the FY 2023-24. The record date for the purpose of payment of interim dividend shall be August 11, 2023.

In Q1 FY24, non-COVID business grew by 9.7% on YoY basis and Covid & Allied business fell by 39.9% on YoY.


Management Comments :

 Commenting on the performance, (Hony) Brig. Dr. Arvind Lal, Executive Chairman said: “As a frontrunner in organized diagnostics, we believe we have consistently met patient expectations on service parameters. We are focused single mindedly on driving volume growth and our methodical approach to network expansion will take lead. Given our strong operating model and brand affinity in both B2C and B2B segments, I see the Company gain share from the un[1]

  • organized space. There is synergy to be leveraged across both our brands and this will form the basis for business performance in the Western India as we fully tap the potential of our new RRL at Vidyavihar. We are constantly focused on expanding our presence to reach a larger number of customers, especially in the tier 3 and 4 cities. Diagnostics industry in India remains dynamic, offering ample opportunities for future expansion. The industry is shifting gears from being an unorganized market largely to one that is organized. This encouraging shift is expected to gain traction in the coming period, helping large national players like us to further cement our leadership position in the country.”

    Commenting on the performance, Dr. Om Manchanda, Managing Director said: “Over the next few years, we expect a rapid shift of market share from unorganized to organized, driven by changing industry dynamics and certain intrinsic benefits available to large organised players. Our omnichannel focus is further accelerating this shift as we seamlessly transport samples and deliver reports conveniently with best-in-class patient experience. Our digital investments have grown manifold in the past few years largely directed towards enhancing the IT infrastructure, including the implementation of advanced technologies to drive higher volumes. These efforts aim to elevate the patient experience and provide tailored solutions to meet customized needs. We continue to focus on highly specialized segments of pathology testing. Our approach has been to focus on these segments through Centre of Excellence (CoE). Dr. Lal PathLabs has strengthened its reputation as a reliable and patient-centric company, and we are committed to leaving our imprint and continuing the growth trajectory.”

    Commenting on the performance, Mr. Bharath Uppiliappan, Chief Executive Officer said: “In Q1 FY24 we served 6.9 million patients generating a revenue of Rs. 541 crore with a growth of 8%, Non Covid growth of 10%. This was largely led by Sample growth of 6% and higher realization. In this quarter we launched our new marketing campaign “Bharat ka Vishwas” with quantifiable reasons to believe why millions of patients and doctors trust Dr Lal Pathlabs. This combined with our digital led initiatives - CHIPs and Recommendation engine supported with on ground activation programs are driving growth in our stronghold markets of North & East. DNCR recorded a strong growth rate. Swasthfit registered highest ever quarterly revenue of Rs 112 Cr with a contribution of 22% to topline. We are creating variants of common tests like Lipid profile & making it medically more relevant sub segments of patients like diabetics & heart related ailments. Our strategic expansion in Tier 3 & 4 cities of the country continues as per plan. In addition to the labs in Siwan, Sultanpur & Murshidabad in Q4 FY23, we have commenced operations at 4 of our greenfield labs in Jind in Haryana, Una in Himachal Pradesh & Tamluk & Hooghly in West Bengal. We believe we have the right set of building blocks coupled with PAN India presence and the digital infrastructure that will help us to deliver industry leading growth rates for a long period of time.”

     



    Dr Lal Pathlabs : Consolidated Results
     Quarter endedYear ended
    Particulars202306202206Var.(%)202303202203Var.(%)
    Net Sales (including other operating income)541.00502.707.622,016.902,087.40-3.38
    OPM (%)27.0223.37365 bps24.2926.86-257 bps
    OP146.20117.5024.43489.90560.70-12.63
    Other Inc.14.408.3073.4941.7052.50-20.57
    PBIDT160.60125.8027.66531.60613.20-13.31
    Interest8.008.50-5.8837.5030.2024.17
    PBDT152.60117.3030.09494.10583.00-15.25
    Depreciation35.135.9-2.23150.2108.138.95
    PBT117.5081.4044.35343.9474.9-27.58
    Share of Profit/(Loss) from Associates00-00-
    PBT before EO117.581.444.35343.9474.9-27.58
    EO Income00-00-
    PBT after EO117.581.444.35343.9474.9-27.58
    Taxation33.923.246.12102.8124.6-17.50
    PAT83.658.243.64241.1350.3-31.17
    Minority Interest (MI)10.5100.002.25.5-60.00
    Net profit82.657.743.15238.9344.8-30.71
    P/(L) from discontinued operations net of tax00-00-
    Net profit after discontinued operations82.657.743.15238.9344.8-30.71
    EPS (Rs)*9.906.9243.1528.6441.34-30.71
    * EPS is on current equity of Rs 83.41 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


  • Previous News
      Dr Lal Pathlabs consolidated net profit rises 53.98% in the December 2023 quarter
     ( Results - Announcements 01-Feb-24   15:39 )
      Dr Lal Pathlabs gains as Q3 PAT rises 54% YoY to Rs 81 cr
     ( Hot Pursuit - 01-Feb-24   15:00 )
      Dr Lal Pathlabs
     ( Results - Analysis 10-Feb-22   20:27 )
      Volumes jump at Great Eastern Shipping Company Ltd counter
     ( Hot Pursuit - 13-May-24   11:00 )
      CARE Ratings assigns "AA" rating to Dr. Lal PathLabs
     ( Hot Pursuit - 11-Jan-23   10:28 )
      Dr Lal Pathlabs allots 16,000 equity shares under ESOP
     ( Corporate News - 12-Apr-23   14:00 )
      Dr. Lal PathLabs announces board meeting date
     ( Corporate News - 04-Feb-22   14:46 )
      Dr Lal Pathlabs allots 7000 equity shares under ESOP
     ( Corporate News - 06-May-22   18:13 )
      Dr Lal Pathlabs consolidated net profit rises 5.96% in the September 2020 quarter
     ( Results - Announcements 06-Nov-20   15:37 )
      Dr Lal Pathlabs receives credit rating for LT bank facilities
     ( Corporate News - 10-Jan-23   19:00 )
      Dr Lal Pathlabs Ltd Falls 3.18%
     ( Hot Pursuit - 30-Nov-21   09:45 )
    Other Stories
      Gillette India
      30-Aug-24   10:08
      AIA Engineering
      17-Aug-24   11:47
      Voltas
      17-Aug-24   11:43
      ABB India
      17-Aug-24   11:39
      NHPC
      17-Aug-24   11:23
      NTPC
      17-Aug-24   11:20
      Tata Power Company
      17-Aug-24   11:10
      Adani Ports & Special Economic Zone
      17-Aug-24   10:53
      Adani Power
      17-Aug-24   10:44
      Crompton Greaves Consumer Electricals
      17-Aug-24   10:34
    Back Top