Capitaline

Results 13-May-24

Analysis

Dr Lal Pathlabs

NP up 49.03%

For the quarter ending March 2024, consolidated Net sales (including other operating income) of Dr Lal Pathlabs has increased 11.08% to Rs 545.4 crore compared to quarter ended March 2023. Operating profit margin has jumped from 23.54% to 26.53%, leading to 25.17% rise in operating profit to Rs 144.70 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 21.57% to 19.97%. Employee cost increased from 18.84% to 19.33%. Other expenses fell from 36.05% to 34.18%. Selling and administration expenses fell from 14.01% to 13.86%.

Other income rose 29.58% to Rs 18.4 crore. PBIDT rose 25.65% to Rs 163.1 crore. Provision for interest fell 26.67% to Rs 6.6 crore. Loan funds declined from Rs 419.50 crore as of 31 March 2023 to Rs 246.90 crore as of 31 March 2024. Inventories rose to Rs 37.30 crore as of 31 March 2024 from Rs 33.80 crore as of 31 March 2023. Sundry debtors were higher at Rs 77.40 crore as of 31 March 2024 compared to Rs 70.80 crore as of 31 March 2023. Cash and bank balance rose to Rs 830.30 crore as of 31 March 2024 from Rs 665.40 crore as of 31 March 2023. Investments declined from Rs 149.90 crore as of 31 March 2023 to Rs 113.80 crore as of 31 March 2024.

PBDT rose 29.55% to Rs 156.5 crore. Provision for depreciation fell 2.66% to Rs 36.6 crore. Fixed assets declined from Rs 762.20 crore as of 31 March 2023 to Rs 685.00 crore as of 31 March 2024. Intangible assets increased from Rs 547.80 crore to Rs 548.20 crore.

Profit before tax grew 44.11% to Rs 119.90 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 34.1 crore, compared to Rs 26.3 crore. Effective tax rate was 28.44% compared to 31.61%.

Minority interest increased 550% to Rs 1.30 crore. Net profit attributable to owners of the company increased 49.03% to Rs 84.50 crore.

Equity capital increased from Rs 83.40 crore as of 31 March 2023 to Rs 83.50 crore as of 31 March 2024. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 54.60% as of 31 March 2024 ,compared to 55.03% as of 31 March 2023 .

Full year results analysis.

Net sales (including other operating income) of Dr Lal Pathlabs has increased 10.40% to Rs 2226.6 crore. Operating profit margin has jumped from 24.29% to 27.36%, leading to 24.37% rise in operating profit to Rs 609.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.17% to 20.27%. Employee cost increased from 18.67% to 19.06%. Other expenses fell from 34.87% to 33.30%. Selling and administration expenses rose from 13.98% to 14.06%.

Other income rose 65.95% to Rs 69.2 crore. PBIDT rose 27.63% to Rs 678.5 crore. Provision for interest fell 21.60% to Rs 29.4 crore. Loan funds declined from Rs 419.50 crore as of 31 March 2023 to Rs 246.90 crore as of 31 March 2024. Inventories rose to Rs 37.30 crore as of 31 March 2024 from Rs 33.80 crore as of 31 March 2023. Sundry debtors were higher at Rs 77.40 crore as of 31 March 2024 compared to Rs 70.80 crore as of 31 March 2023. Cash and bank balance rose to Rs 830.30 crore as of 31 March 2024 from Rs 665.40 crore as of 31 March 2023. Investments declined from Rs 149.90 crore as of 31 March 2023 to Rs 113.80 crore as of 31 March 2024.

PBDT rose 31.37% to Rs 649.1 crore. Provision for depreciation fell 4.39% to Rs 143.6 crore. Fixed assets declined from Rs 762.20 crore as of 31 March 2023 to Rs 685.00 crore as of 31 March 2024. Intangible assets increased from Rs 547.80 crore to Rs 548.20 crore.

Profit before tax grew 46.99% to Rs 505.50 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 143.2 crore, compared to Rs 102.8 crore. Effective tax rate was 28.33% compared to 29.89%.

Minority interest increased 109.09% to Rs 4.60 crore. Net profit attributable to owners of the company increased 49.73% to Rs 357.70 crore.

Equity capital increased from Rs 83.40 crore as of 31 March 2023 to Rs 83.50 crore as of 31 March 2024. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 54.60% as of 31 March 2024 ,compared to 55.03% as of 31 March 2023 .

Cash flow from operating activities increased to Rs 535.40 crore for year ended March 2024 from Rs 456.00 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 57.50 crore, compared to Rs 44.60 crore during the year ended March 2023.

Other Highlights

The board recommendation of final dividend of Rs 6 per equity share on a face value of Rs 10 each for the financial year ended March 31, 2024. The record date for the purpose of payment of final dividend shall be June 10, 2024.

Management Comments :
Commenting on the performance, (Hony) Brig. Dr. Arvind Lal, Executive Chairman said: “Dr. Lal PathLabs remains dedicated to driving sustainable growth in response to the demand for dependable diagnostic services. We`re investing in an efficient, technology-enabled network to accommodate the growing volume of samples and enhance patient accessibility. Our strategic focus areas, including geographical expansion, portfolio diversification and digital transformation, are driving significant progress. By leveraging our unique strengths, such as DLPL and Suburban’s distinct USPs, we`re prioritizing network synergies as well as employing a phygital mechanism to meet evolving consumer preferences. As we navigate through competitive landscape and pursue growth opportunities, our approach emphasizes on both organic and inorganic opportunities, particularly in the untapped markets. Through continuous innovation, branding efforts and prudent financial management, we`re dedicated to maintaining our leadership position and enhancing shareholder value.”

Dr. Om Manchanda, Managing Director said: “A strategic thrust towards widening and deepening our geographical footprint, thereby, delivering sustainable volume and value growth continues to guide us. Initiatives are underway to gain traction in both B2C and B2B segments. Another peg in this approach is the development of medical centers of excellence, whereupon we focus on positive patient outcomes for identified underlying conditions through accurate and timely diagnosis. Expanding further into Mumbai, and select parts of Maharashtra via Suburban, together with development of presence in tier 3 and 4 towns remains a fundamental goal. To strengthen Suburban’s operations, we`re focusing on sampling promotion and brand building and expect to see traction in the coming months. Additionally, under the DLPL brand, we are developing new lab towns to expand our reach. As the leading brand, we are setting the tone of growth and profitability, with focused actions driven by an experienced team.”

Mr. Shankha Banerjee, Chief Executive Officer-Designate said: “We are thrilled to have concluded the year on a strong note, achieving 10.4% growth in Revenue and 50.3% growth in PAT . In FY24, we provided services to 27.6 million patients and tested a total of 78.2 million samples, representing a growth of 8.1% in samples over previous year. We`re expanding our reach in core markets by strengthening our presence in Tier 3 and Tier 4 towns. Simultaneously, we`re intensifying efforts in key clusters of Western and Southern India. We continue to leverage our digital infrastructure, including advanced AI and data analytics, to enhance patient experience and deliver operational excellence. We have taken a lead in bundling routine tests under `Swasthfit’ and have been successful thus far. We will continue to expand its reach and develop programs for sustain growth trajectory.”

Dr Lal Pathlabs : Consolidated Results

	Quarter ended			Year ended
Particulars	202403	202303	Var.(%)	202403	202303	Var.(%)
Net Sales (including other operating income)	545.40	491.00	11.08	2,226.60	2,016.90	10.40
OPM (%)	26.53	23.54	299 bps	27.36	24.29	307 bps
OP	144.70	115.60	25.17	609.30	489.90	24.37
Other Inc.	18.40	14.20	29.58	69.20	41.70	65.95
PBIDT	163.10	129.80	25.65	678.50	531.60	27.63
Interest	6.60	9.00	-26.67	29.40	37.50	-21.60
PBDT	156.50	120.80	29.55	649.10	494.10	31.37
Depreciation	36.6	37.6	-2.66	143.6	150.2	-4.39
PBT	119.90	83.20	44.11	505.5	343.9	46.99
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	119.9	83.2	44.11	505.5	343.9	46.99
EO Income	0	0	-	0	0	-
PBT after EO	119.9	83.2	44.11	505.5	343.9	46.99
Taxation	34.1	26.3	29.66	143.2	102.8	39.30
PAT	85.8	56.9	50.79	362.3	241.1	50.27
Minority Interest (MI)	1.3	0.2	550.00	4.6	2.2	109.09
Net profit	84.5	56.7	49.03	357.7	238.9	49.73
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	84.5	56.7	49.03	357.7	238.9	49.73
EPS (Rs)*	10.12	6.79	49.03	42.85	28.62	49.73

* 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

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