For
the quarter ending Sept 2023, consolidated Net sales (including other operating income) of Dr Lal Pathlabs has increased 12.65% to Rs 601.3 crore compared to quarter ended Sept 2022. Operating profit margin has jumped from 26.94% to 29.57%, leading to 23.64% rise in operating profit to Rs 177.80 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 21.77% to 20.36%. Employee cost increased from 17.03% to 17.53%. Other expenses fell from 34.26% to 32.55%. Selling and administration expenses rose from 13.92% to 14.17%. Other income rose 108.05% to Rs 18.1 crore. PBIDT rose 28.46% to Rs 195.9 crore. Provision for interest fell 28.44% to Rs 7.8 crore. Loan funds rose to Rs 299.20 crore as of 30 September 2023 from Rs 285.40 crore as of 30 September 2022. Inventories declined from Rs 54.50 crore as of 30 September 2022 to Rs 40.90 crore as of 30 September 2023. Sundry debtors were lower at Rs 85.50 crore as of 30 September 2023 compared to Rs 91.80 crore as of 30 September 2022. Cash and bank balance rose to Rs 786.40 crore as of 30 September 2023 from Rs 525.90 crore as of 30 September 2022. Investments declined from Rs 123.90 crore as of 30 September 2022 to Rs 110.40 crore as of 30 September 2023.
PBDT rose 32.84% to Rs 188.1 crore. Provision for depreciation fell 7.47% to Rs 35.9 crore. Fixed assets increased to Rs 721.30 crore as of 30 September 2023 from Rs 423.10 crore as of 30 September 2022. Intangible assets declined from Rs 936.80 crore to Rs 547.80 crore.
Profit before tax grew 48.05% to Rs 152.20 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 41.5 crore, compared to Rs 30.4 crore. Effective tax rate was 27.27% compared to 29.57%.
Minority interest increased 100% to Rs 1.40 crore. Net profit attributable to owners of the company increased 52.44% to Rs 109.30 crore. Equity capital increased from Rs 83.40 crore as of 30 September 2022 to Rs 83.50 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 54.61% as of 30 September 2023 ,compared to 55.05% as of 30 September 2022 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Dr Lal Pathlabs has increased 10.21% to Rs 1142.3 crore.
Operating profit margin has jumped from 25.21% to 28.36%, leading to 24% rise in operating profit to Rs 324.00 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.23% to 20.62%. Employee cost increased from 18.11% to 18.39%. Other expenses fell from 34.45% to 32.63%. Selling and administration expenses rose from 13.88% to 13.98%. Other income rose 91.18% to Rs 32.5 crore. PBIDT rose 28.10% to Rs 356.5 crore. Provision for interest fell 18.56% to Rs 15.8 crore. Loan funds rose to Rs 299.20 crore as of 30 September 2023 from Rs 285.40 crore as of 30 September 2022. Inventories declined from Rs 54.50 crore as of 30 September 2022 to Rs 40.90 crore as of 30 September 2023. Sundry debtors were lower at Rs 85.50 crore as of 30 September 2023 compared to Rs 91.80 crore as of 30 September 2022. Cash and bank balance rose to Rs 786.40 crore as of 30 September 2023 from Rs 525.90 crore as of 30 September 2022. Investments declined from Rs 123.90 crore as of 30 September 2022 to Rs 110.40 crore as of 30 September 2023.
PBDT rose 31.60% to Rs 340.7 crore. Provision for depreciation fell 4.95% to Rs 71 crore. Fixed assets increased to Rs 721.30 crore as of 30 September 2023 from Rs 423.10 crore as of 30 September 2022. Intangible assets declined from Rs 936.80 crore to Rs 547.80 crore.
Profit before tax grew 46.42% to Rs 269.70 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 75.4 crore, compared to Rs 53.6 crore. Effective tax rate was 27.96% compared to 29.10%.Minority interest increased 100% to Rs 2.40 crore. Net profit attributable to owners of the company increased 48.30% to Rs 191.90 crore.
Equity capital increased from Rs 83.40 crore as of 30 September 2022 to Rs 83.50 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 54.61% as of 30 September 2023 ,compared to 55.05% as of 30 September 2022 .
Cash flow from operating activities increased to Rs 305.40 crore for YTD ended September 2023 from Rs 241.60 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 27.70 crore, compared to Rs 29.10 crore during the YTD ended September 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 762.20 crore as of 31 March 2023. Intangible assets increased from Rs 543.50 crore to Rs 547.80 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.
Management Comments :
Commenting on the performance, (Hony)
Brig. Dr. Arvind Lal, Executive Chairman said: “Dr. Lal PathLabs has been
relentlessly serving the nation as one of the most trusted healthcare partners
of choice for over 70 years now. This trust is a culmination of focused efforts
on delivering consistent value, quality and accuracy to patients testing
requirements in a time bound manner. This has earned us several accolades and
helped us gain ‘Bharat Ka Vishwas’. Our nuanced understanding of market
complexities makes us unique, and our endeavor is to further leverage this
while driving volumes in under-penetrated tier 3 and 4 regions. Superior
technology adoption combined with innovation across product chain will help
cement our leadership position in the healthcare space. Synergies across both
our brands are playing out as expected, and we are now a significantly large
player in the high potential, Western market. The continuous shift from
unorganized to organized testing, is gaining momentum and this will further
amplify our performance trajectory going ahead.”
Commenting on the performance, Dr. Om
Manchanda, Managing Director said: “We are seeing healthy and steady rise in
DLPL’s revenue growth trends both in value and volume terms. The quarter also
saw some rationality returning, where brands have taken measured price
increases in their test portfolios. I believe peak competitive intensity may be
behind us. DLPL continues to move levers in order sustain performance momentum.
From focus on Tier 3 and 4 towns in strong markets of North and East to
emphasizing upon specialty and super specialist portfolio; we have meticulously
pursued growth drivers in this endeavor. We continue to build Suburban in key
markets of West like Mumbai, Pune and Goa, there’s a clear focus on driving
topline while optimizing laboratory infrastructure between our two brands.
Investments in IT infrastructure, both at the front end and on the operating
side, are supporting our brand franchise to move forward. Going ahead, we see
an expanding role for us to bring quality diagnostics to the larger population
of the country.”
Commenting on the performance, Mr. Bharath
Uppiliappan, Chief Executive Officer said: “We reported robust quarter of
revenue and profit growth while making good progress to our strategic growth
agendas. Our patient growth is significantly higher than our Q1 FY 24 numbers,
we served 7.5 million patients in the second quarter of FY24 and 14.4 million
patients in H1 of FY24. We had launched a marketing campaign “Bharat ka
Vishwas” with the aim of fostering trust and convenience for both doctors and
patients. I am glad to share that we have started witnessing favorable
outcomes, further solidifying the trust in our brand among healthcare
professionals and patients. Our D2C Program across all geographies incl.
Suburban has begun to gain traction and so has our Key Account Management
program. Our expansion program in Tier 3+ towns continues to show encouraging
results. On the back of this response, we are planning to accelerate this
journey by opening more new labs in Tier 3+ towns. Overall, we are moving the
right leversto optimally set a growth trajectory that will give us sustainable
growth.”