Capitaline

Results 02-Feb-24

Analysis

Dr Lal Pathlabs

OPM jumped 300 bps

For the quarter ending Dec 2023, consolidated Net sales (including other operating income) of Dr Lal Pathlabs has increased 10.11% to Rs 538.9 crore compared to quarter ended Dec 2022. Operating profit margin has jumped from 23.09% to 26.09%, leading to 24.42% rise in operating profit to Rs 140.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.66% to 19.86%. Employee cost increased from 19.68% to 20.23%. Other expenses fell from 34.57% to 33.83%. Selling and administration expenses rose from 14.16% to 14.42%.

Other income rose 74.29% to Rs 18.3 crore. PBIDT rose 28.66% to Rs 158.9 crore. Provision for interest fell 23.08% to Rs 7 crore.

PBDT rose 32.78% to Rs 151.9 crore. Provision for depreciation fell 5.01% to Rs 36 crore.

Profit before tax grew 51.50% to Rs 115.90 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 33.7 crore, compared to Rs 22.9 crore. Effective tax rate was 29.08% compared to 29.93%.

Minority interest increased 12.50% to Rs 0.90 crore. Net profit attributable to owners of the company increased 53.98% to Rs 81.30 crore.

Promoters’ stake was 54.60% as of 31 December 2023 ,compared to 55.05% as of 31 December 2022 .

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

Net sales (including other operating income) of Dr Lal Pathlabs has increased 10.18% to Rs 1681.2 crore.

Operating profit margin has jumped from 24.53% to 27.64%, leading to 24.13% rise in operating profit to Rs 464.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.37% to 20.37%. Employee cost increased from 18.61% to 18.98%. Other expenses fell from 34.49% to 33.01%. Selling and administration expenses rose from 13.97% to 14.12%.

Other income rose 84.73% to Rs 50.8 crore. PBIDT rose 28.27% to Rs 515.4 crore. Provision for interest fell 20% to Rs 22.8 crore.

PBDT rose 31.96% to Rs 492.6 crore. Provision for depreciation fell 4.97% to Rs 107 crore.

Profit before tax grew 47.91% to Rs 385.60 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 109.1 crore, compared to Rs 76.5 crore. Effective tax rate was 28.29% compared to 29.34%.

Minority interest increased 65% to Rs 3.30 crore. Net profit attributable to owners of the company increased 49.95% to Rs 273.20 crore.

Promoters’ stake was 54.60% as of 31 December 2023 ,compared to 55.05% as of 31 December 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.

Other Highlights

Company approved 2nd Interim Dividend of Rs 12 per equity share (120% on a face value of Rs 10 per share) for the FY24. The record date for the purpose of payment of 2nd Interim Dividend shall be February 13, 2024.

Management Comments :
Commenting on the performance, (Hony) Brig. Dr. Arvind Lal, Executive Chairman said: “Dr. Lal Pathlabs continues to be the preferred choice for customers seeking latest high-end testing and accurate diagnosis, over the last 75 years. Our brand stature has only increased over the years, attributed to the establishment of our advanced high-tech testing infrastructure and omnichannel presence. We have achieved a milestone in Histocompatibility & Transplant Immunology testing with Next Generation Sequencing or NGS by carrying out 600 Runs of HLA-NGS. We have also taken the lead in establishing ‘donor derived cell free DNA’, as a non- invasive monitoring test for solid organ transplantation. Our performance going ahead will be guided by expanding our presence in underpenetrated tier 3 and 4 markets, coupled with a targeted focus on high-potential markets in the West and South region. This is in addition to extensively utilizing our digital infrastructure where we have made investments across AI, data analytics, machine learning etc.”

Commenting on the performance, Dr. Om Manchanda, Managing Director said: “Our business has delivered double digit top-line growth rates on YOY basis both in the current quarter as well as on YTD basis. We have significantly improved our operating and net margins profile driving by efficiencies of scale and productivity driven initiatives. Efforts continue to look for expansion in Tier III and Tier IV towns through organic means of growth. Our team has carefully identified pockets and the markets that will drive future growth. Industry experienced bundling of routine tests as a new consumer trend. We led this trend and successfully built a brand – SwasthFit. The revenue contribution from SwasthFit has now stabilized ranging between 19-21%. Our investments in technology and digital at the infrastructure level, at the front end and in interactions with patients, are translating into salience. We are also pushing ahead with the Suburban brand in chosen geographies while meticulously executing a network and test menu expansion agenda.”

Commenting on the performance, Mr. Bharath Uppiliappan, Chief Executive Officer said: “We are pleased to share that we have delivered yet another quarter of double digit revenue growth of 10.1% In Q3, serving 6.7 million patients & testing 18.6 million samples representing a sample growth of 7.1 % over last year. Our key product program like Swasthfit contributing to 20% of revenue, medical Centre of Excellence – LACE and LCORD continues to fortify our position amongst the medical community and patients. In addition digitally enabled initiatives like CHIPs & Recommendation engine continue to make meaningful contribution in enhancing patient loyalty and stickiness. Overall, we are moving the right levers to optimally set a growth trajectory that will give us sustainable growth. Our strategy of deepening presence in underserved Tier 3 and 4 markets by opening new labs is taking concrete shape and we are on course to accelerate this momentum. To support this, we have built a strong hub lab network. Based on robust opportunity size, we are making targeted investmentsto consolidate our position and serve as many patients as possible.”

Dr Lal Pathlabs : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202312	202212	Var.(%)	202312	202212	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	538.90	489.40	10.11	1,681.20	1,525.90	10.18	2,016.90	2,087.40	-3.38
OPM (%)	26.09	23.09	300 bps	27.64	24.53	311 bps	24.29	26.86	-257 bps
OP	140.60	113.00	24.42	464.60	374.30	24.13	489.90	560.70	-12.63
Other Inc.	18.30	10.50	74.29	50.80	27.50	84.73	41.70	52.50	-20.57
PBIDT	158.90	123.50	28.66	515.40	401.80	28.27	531.60	613.20	-13.31
Interest	7.00	9.10	-23.08	22.80	28.50	-20.00	37.50	30.20	24.17
PBDT	151.90	114.40	32.78	492.60	373.30	31.96	494.10	583.00	-15.25
Depreciation	36	37.9	-5.01	107	112.6	-4.97	150.2	108.1	38.95
PBT	115.90	76.50	51.50	385.6	260.7	47.91	343.9	474.9	-27.58
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	115.9	76.5	51.50	385.6	260.7	47.91	343.9	474.9	-27.58
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	115.9	76.5	51.50	385.6	260.7	47.91	343.9	474.9	-27.58
Taxation	33.7	22.9	47.16	109.1	76.5	42.61	102.8	124.6	-17.50
PAT	82.2	53.6	53.36	276.5	184.2	50.11	241.1	350.3	-31.17
Minority Interest (MI)	0.9	0.8	12.50	3.3	2	65.00	2.2	5.5	-60.00
Net profit	81.3	52.8	53.98	273.2	182.2	49.95	238.9	344.8	-30.71
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	81.3	52.8	53.98	273.2	182.2	49.95	238.9	344.8	-30.71
EPS (Rs)*	9.74	6.33	53.98	32.73	21.83	49.95	28.62	41.30	-30.71

* EPS is on current equity of Rs 83.48 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 52.44% in the September 2023 quarter
( Results - Announcements 02-Nov-23 14:57 )

Dr Lal Pathlabs allots 5,00 equity shares under ESOP
( Corporate News - 31-Aug-23 15:08 )

Board of Dr. Lal PathLabs recommends final dividend
( Corporate News - 12-May-23 10:28 )

Dr Lal Pathlabs consolidated net profit rises 361.97% in the June 2021 quarter
( Results - Announcements 30-Jul-21 14:15 )

Dr Lal Pathlabs grants 11,500 RSU options
( Corporate News - 06-Dec-21 12:15 )

Dr. Lal PathLabs to conduct board meeting
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Dr Lal Pathlabs consolidated net profit rises 53.98% in the December 2023 quarter
( Results - Announcements 01-Feb-24 15:39 )

Dr. Lal PathLabs announces board meeting date
( Corporate News - 04-Feb-22 14:46 )

Dr. Lal PathLabs spurts as Q4 PAT climbs 49% YoY to Rs 84 cr
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Dr Lal Path Labs Q3 PAT drops 39% YoY to Rs 58 cr
( Hot Pursuit - 10-Feb-22 15:44 )