Metropolis Healthcare eyes 60% revenue from B2C business in next 2-3 years

The diagnostic player has also taken price hikes in the range of 4-5 percent in the last three years

Mumbai-headquartered diagnostic services provider Metropolis Healthcare is eyeing 60 per cent of its revenues from the business-to-consumer (B2C) segment in the next two-three years. The company’s current share in the segment is 52 per cent.

As Metropolis focuses on aggressive network expansion, it has been growing its B2C segment. This includes both the prescription-led business and direct customer bookings for tests — over the years.

Ameera Shah, promoter and managing director (MD) of Metropolis Healthcare said, “From FY17 to FY21, we grew the B2C business from 37 per cent to 50 per cent. We are looking to grow this further to 60 per cent of our revenues in the next 2-3 years.”

B2C business gives at least 5-6 per cent higher margins than the business-to-business (B2B) segment.

Shah said the primary focus of the diagnostics firm is to push the B2C business, which is a more profitable and also a ‘sticky’ business.

Also Read: Metropolis Healthcare net profit declines 15% to Rs 29 crore in Q1

In Q1FY24, the core business revenues grew 12 per cent year-on-year (YoY), while the total revenues were down due to exit from a large business-to-government contract. B2C business, however, grew 13 per cent YoY, and in Mumbai, this growth was over 15 per cent.

“Metropolis has witnessed growth across test mix in B2C markets with specialised and wellness segments growing by 15 per cent and 19 per cent, respectively, YoY,” the company said after the first quarter results.

It has been adding laboratories to expand its network. In FY24, the company plans to add 30 labs across India. This is similar to the number of labs it added during the last three years. Metropolis has around 180 labs in the country. 

Surendran Chemmenkotil, chief executive officer (CEO) of Metropolis Healthcare said that, along with lab expansion, the company is also adding collection points. This year, it would add 800 collection centres to its already-existing 3,800.

Also Read: Metropolis Healthcare Limited launches "Metrobot" on National Doctor's Day in India

The company has also taken price hikes in the range of 4-5 per cent during the last three years, Shah said. He added that the share of specialised tests is also growing in its portfolio.