Dr Lal PathLabs Q3 results: Profit jumps 53.3%, revenue up by 10.1%

Dr Lal PathLabs reported an increase in its network of Patient Service Centres (PSCs) and Pick-Up Centres (PUPs) across the country. It also reported a 2 per cent rise in revenue from Tier 3 cities

Delhi-based diagnostics major Dr Lal PathLabs reported a 53.3 per cent year-on-year (Y-o-Y) growth in profit after tax (PAT) for the December quarter (Q3 FY24) at Rs 82.2 crore, up from Rs 53.6 crore reported for the same period last year, according to data posted on the National Stock Exchange (NSE).

The company’s revenue from operations rose to Rs 539 crore in Q3 FY24, a 10.1 per cent Y-o-Y growth in its revenue from operations from Rs 489 crore reported in Q3 FY23.

On a sequential basis, PAT fell by 25 per cent, while revenue fell by 10.3 per cent.

Commenting on the results, Dr Om Manchanda, managing director, Dr Lal PathLabs, said that our business has delivered double-digit top-line growth rates on a Y-o-Y basis in the current quarter. “We have significantly improved our operating and net margins profile driven by efficiencies of scale and productivity-driven initiatives,” he added.

Dr Lal PathLabs reported an increase in its network of Patient Service Centres (PSCs) and Pick-Up Centres (PUPs) across the country. The company also reported a 2 per cent rise in revenue from Tier 3 cities.

The rise in revenue in Tier 3 cities is being attributed to an increase in diagnostic infrastructure, with a 61 per cent increase in the number of collection centres and a 53 per cent rise in the number of PUPs in suburban settings.
 

Speaking on the company’s expansion into Tier 3 centres, (Honorary) Brig Dr Arvind Lal, Executive Chairman, Dr Lal PathLabs, said that performance going ahead will be guided by expanding our presence in underpenetrated Tier 3 and 4 markets, coupled with a targeted focus on high-potential markets in the Western and Southern regions of India.

On Thursday, Dr Lal PathLabs stocks were down by 4.40 per cent, ending the day’s trade at Rs 2,513 a piece on the NSE.