The growth in the company’s core business revenue during the period under review was largely driven by volume growth, which stood at 9%.

The premium wellness & specialised segments are the fastest growing segments in Q3 of FY24. The B2C revenues grew at approximately 14% on YoY basis.

Metropolis further informed that during Q3 FY24, business operations in Chennai & rest of Tamil Nadu, which is one of the bigger markets for the company, was impacted on account of heavy rains and floods in the first week of December 2023, contributing to some softness in revenues for the quarter.

Margins for Q3FY24 are slightly lower on a Y-o-Y basis partly impacted by the situation in Chennai & Tamil Nadu in December and partly due to the ongoing fast-paced lab expansion plans which are diluting reported EBIDTA margins. Excluding this impact, operational margins are healthy.

Competitive intensity in the B2C segment has been reducing, coupled with a steady increase in prices, reduced marketing & customer acquisition expenditures, and decreasing illness-driven business among health-tech peers in the diagnostic industry.

The company, through its prompt actions, strategic initiatives, and network expansion strategies, is poised to leverage these favourable trends. Encouraged by these positives, the company is poised to take a price rise in the B2C segment in Q4 on a pan-India basis.

Gross debt of the company as on 31 December 2023 stood at Rs 12.7 crore.

Metropolis Healthcare is a diagnostics company, with presence in 20 states & 220 cities. Internationally, the company has presence in South Asia, Africa, and the Middle East. It offers a comprehensive range of 4,000 plus tests and profiles that include advanced tests in diagnosis of cancer, neurological disorders, infectious diseases, and an array of genetic abnormalities. The company has a network of over 187 labs, 3,934 collection centres and over 10,000 touch points.

The company reported 11.89% fall in consolidated net profit to Rs 35.66 crore in Q2 FY24 as compared with Rs 40.47 crore posted in corresponding quarter last year. Revenue from operations increased 2.72% year on year to Rs 308.50 crore in Q2 FY24 over Q2 FY23.

The scrip rose 0.45% to currently trade at Rs 1664.75 on the BSE.