Dr Lal Pathlabs slips 6%, hits 52-week low post muted Q4 results

In Q4FY22, normalised earnings before interest, taxes, depreciation, and amortization (EBITDA) margins contracted 630 bps to 19.4 per cent from 25.7 per cent in Q4FY21

Shares of Dr Lal Pathlabs hit 52-week low of Rs 2,047.70 and slipped 6 per cent on the BSE in Wednesday’s intra-day trade. The decline comes after the company posted 14 percent dip year on year (YoY) in consolidated profit after tax (PAT) to Rs 72.9 crore in March quarter (Q4FY22). The company, a leading diagnostic and related healthcare service provider, had posted profit of Rs 85.1 crore in the same quarter last fiscal.

The stock breached its previous low of Rs 2,151.05 that it had touched on Monday, May 16, 2022. In the past one month, the stock declined 23 per cent, as compared to 6 per cent fall in the S&P BSE Sensex.

Meanwhile, Dr Lal Pathlabs operating revenue increased by 12.7 percent YoY in Q4 to Rs 485.5 crore from Rs 431.0 crore, a year ago. COVID and allied contributed to 13.6 per cent revenue in Q4FY22.

Besides that, the company’s normalised earnings before interest, taxes, depreciation, and amortization (EBITDA) margins contracted 630 basis points to 19.4 per cent from 25.7 per cent in Q4FY21. Normalised EBITDA and PAT exclude notional depreciation on consolidation of Suburban Diagnostics.

The management said that though Q4FY22 began well, the onset of Omicron wave in early part of the quarter impacted non-COVID business, only to recover in second half of the quarter. “Our strategic initiatives leveraging digital on patient service levels, geography or tests expansion and channel capability building continue to make good strides. This will enable us to maintain our leadership position for the times to come,” the management added.