Dr Lal PathLabs Q4 results: Net profit jumps 49% to Rs 84.5 crore

Eyes expansion into Tier 3 and Tier 4 towns

Diagnostic service provider Dr Lal PathLabs posted a 49.02 per cent year-on-year (Y-o-Y) increase in profit after tax (PAT) during the fourth quarter of FY24, reaching Rs 84.5 crore. The company also reported an 11.8 per cent increase in its consolidated revenue from operations, which came in at Rs 545 crore. This increase in PAT can be attributed to the reduction in financial costs and their expansion programmes in Tier 3 and Tier 4 towns.

On a sequential basis, the company exhibited a 1.21 per cent increase in revenue, and the PAT increased by 3.94 per cent. The Ebitda (earnings before interest, tax, depreciation, and amortisation) rose 25.1 per cent Y-o-Y, reaching Rs 145 crore.

For the full year of FY24, the company posted a 10.4 per cent Y-o-Y increase in revenue and a 50.3 per cent increase in PAT, reaching Rs 2,227 crore and Rs 362 crore, respectively. The Ebitda was up by 24.4 per cent, reaching Rs 609 crore.

Speaking on the results, Shankha Banerjee, chief executive officer-designate of Dr Lal PathLabs, stated, “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 per cent in samples over the 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,” Banerjee further added.

Commenting on the results, Om Manchanda, managing director of Dr Lal PathLabs, stated, “A strategic thrust towards widening and deepening our geographical footprint, thereby delivering sustainable volume and value growth, continues to guide us. Expanding further into Mumbai and select parts of Maharashtra via Suburban, together with developing a presence in Tier 3 and Tier 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.”

Dr Lal PathLabs' share price rose 5.38 per cent, ending the day's trade at Rs 2,348.85 apiece on the BSE.