It is my privilege to once again report to you our Company's performance. As I write toyou the world is tackling its biggest crisis in recent times the COVID-19pandemic. It has unleashed an unprecedented socioeconomic disruption and forced many of usinto lockdown. While the global science community is working tirelessly to develop avaccine which will take some time the world is likely to face a very challenging period.Nonetheless humanity has seen through many such crises in the past and each time it hascome out stronger.
Adversity they say is a great teacher. I have learnt and experienced this across myentire life career and business. There are some who give up in fear and panic and yetthere are others who learn from them stay resilient and convert them into opportunity. AtThyrocare we are confident that we shall not only tide through the challenge but alsoemerge a better company.
As I retrospect our positioning in these times it makes me happy to be a part of theCompany that was amongst the first few private laboratories to be authorised by the IndianMedical Council of Research (ICMR) to perform COVID-19 tests using RT-PCR technology. Itjust shows the kind of reputation we have earned in the industry due to our speedtechnology and quality. We see ourselves proactively scaling up capacities to widen ourservice reach and help the nation fight the pandemic. I take this opportunity to thank ourpeople and all the other frontline warriors who have been at the forefront to help thesociety.
The financial year 2019-20 has been the most challenging for businesses. It started offwith a muted macroeconomy scenario due to liquidity crisis and weak global markets. Thisresulted in weak consumer sentiment and thus lower discretionary spending. Our businessbeing into wellness and preventive healthcare segment was also impacted because of this.The month of March saw the major outbreak of pandemic in our nation and the eventuallockdown which led to restrictions in the movement of patients and specimen prompting usto scale down and shut down operations at certain locations. Having said that our uniquebusiness model of operating in the B2B segment along with sustained focus on sticking tothe basics and core strengths helped us tide through the situation. Our topline in spiteof challenges grew 8% to Rs. 400 Crores in 2019-20. Normalised EBITDA grew by 9.16% to
Rs. 168.41 Crores and normalised PAT by 18% to Rs. 112.08 Crores.
Our role in containing the virus spread in Dharavi considered to be one of Asia'slargest slums has also been acknowledged by MCGM. As of August 15 2020 we have processedmore than 185000 tests.
Pathology business growth was satisfactory at 8% to Rs. 400 Crores. However radiologybusiness operated by subsidiary Nueclear Healthcare suffered a setback due to suspensionof operations at Surat Vadodara and Jaipur centres on account of dispute with thepartner and inability to scale business faster in the newly opened Bengaluru andCoimbatore centres. Despite this Nueclear was able to grow scan volumes and maintaincosts. Its revenues grew 4.4% to
Rs. 34.09 Crores.
While the regular business was impacted we have seen a silver lining in performingCOVID-19 tests using RT-PCR technology which has opened a new revenue stream. We have beenselected as a preferred private laboratory for performing tests for all major hospitalsaffiliated to Municipal Corporation of Greater Mumbai (MCGM) like Seven Hills HospitalBhabha Hospital Nair Hospital V N Desai Hospital Nesco isolation facility BKCisolation facility etc. Our role in containing the virus spread in Dharavi considered tobe one of Asia's largest slums has also been acknowledged by MCGM. As of August 15 2020we have processed more than 185000 tests.
We have also been chosen by MCGM for the Aapli Chikitsa' project to serve thecity and west zone of Mumbai. We are presently sourcing samples from 139 municipaldispensaries 18 maternity homes 14 hospitals and 3 urban health centres and havesuccessfully deployed our services to their satisfaction.
Strategy for business growth
While the business and competitive scenario is tough we have reworked our strategy tothrive and ensure a sustainable future. Our primary focus in the coming years will be todeepen regional penetration by getting closer to actual sample giving clients. Towardsthis we have started aggressively approaching sample giving clients local smallerlaboratories dispensaries clinics hospitals and doctors and onboarding them ontoour system. They were also mapped to the nearest service provider through our robustmobile application to ensure business fulfilment. These newer clients will supplement ourgrowth in the coming years.
To support the regional growth strategy we have expanded regional presence to 11centres adding two more regional processing laboratories at Bhubaneswar and Pune duringthe year. An additional workforce was also hired especially in the business developmentfunction to acquire clients in deeper parts of the country and in the customer supportfunction to manage growing business needs. Further we are undertaking efforts to buildown supply/service chain by inducting technicians on contractual basis to collect samplesas well as executives to ensure fast delivery of collected sample to the nearestlaboratory.
Expanding offerings to widen addressable target population is another important focusarea for us. Our tuberculosis business Focus TB is a part of this strategy.We have been able to rapidly scale this business and presently cover the entire MumbaiMetropolitan Region (MMR). We are closely assessing the current situation and intend toreplicate the model in the other territories too. Progressing on this strategy we haveintroduced newer technologies like microbiology tests non-invasive prenatal testing andfood intolerance profiles in 2019-20. These newer channels are promising areas and willaugment our growth in the future. Simultaneously laboratory automation was upgraded toensure zero sample handling accurate sample processing and quicker turnaround time forAHCV and HIV tests too.
The coming year is likely to be challenging as the novel coronavirus is spreadingrapidly in India. It will have an impact on business directly or indirectly despite usbeing engaged in providing essential medical services. Resumption of full-fledgedoperations for tests other than COVID-19 will highly depend upon how the situation pansout in our nation and subsequent directive from the Government of India. This along withdisruption in supply chain reduced workforce availability decrease in market prices andreduced demand will lead to capacities remaining under-utilised and in some casescompletely shut down.
Your Company has however assessed the impact of COVID-19 and has adopted correctivemeasures to minimise the damage. Our financial position with enough liquidity and nomajor fixed costs remains strong to handle any kind of shock.
On that note I would like to thank all our stakeholders for their continued support.We remain committed to work through the current difficult times while being focused onmaking our business more resilient. We continue to seek your support so that together wecan overcome and grow.