Dr. Lal PathLabs Q2 PAT slides 24% YoY to Rs 72 cr

Dr. Lal PathLabs consolidated net profit slipped 24.53% to Rs 71.7 crore despite of 7.1% rise in revenue from operations to Rs 533.8 crore in Q2 FY23 over Q2 FY22.

Covid and allied contributed 3.7% to revenue in Q2 FY23 as against 10.1% in the corresponding quarter last year.

Profit before tax in Q2 FY23 stood at Rs 102.8 crore, down by 21.3% from Rs 130.6 crore posted in Q2 FY22.

Total expenditure rose 15.07% year on year to Rs 43.97 crore in the quarter ended 30 September 2022. Cost of materials was Rs 11.62 crore (down 6.59% YoY) while employee benefits expense was Rs 90.9 crore (up 8.73% YoY) and finace cost stood at Rs 10.9 crore (up 131.9% YoY) during the period under review.

EBITDA grew 1.6% to Rs 143.8 crore in Q2 FY23 as against Rs 141.5 crore recorded in Q2 FY22. EBITDA margin declined in Q2 FY23 to 26.9% as compared to 28.4% in Q2 FY22.

As on 30 September 2022, the pharma company's net cash and cash equivalents stood at Rs 419 crore.

Dr. Om Manchanda, managing director, said: Our performance trajectory continues to improve backed by increased volume flow from wellness testing, especially post the Covid-19 outbreak in addition to incremental gains from new clusters developed across Western and Eastern region.

Instead of increasing the test prices, we are focusing on driving volumes to achieve scale benefits, thereby maintaining our margins. I believe our strategy here is working well and we would like to replicate the same for Suburban to bolster our leadership position in the country.''

Bharath Uppiliappan, chief executive officer, stated: During the quarter under review, we registered strong gains in our non-covid business, which grew at 14.8% YoY. Our growth was aided by Swasthfit - registered its highest ever revenue, super specialty and medical excellence programs like Genevolve and LACE. Suburban diagnostics continues to make progress across various key operating metrics.

Dr. Lal PathLabs is a provider of diagnostic and related healthcare tests and services in India. As on March 31, 2022 the company has 277 clinical laboratories, 4,731 Patient Service Centers (PSCs) and 10,599 Pick-up Points (PUPs).

The scrip ended 1.78% higher at Rs 2,625.60 on Monday, 7 November 2022.

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