Shares of Metropolis Healthcare, one of the leading Indian diagnostics companies, rose 7.54% in today’s intraday session to hit a new 52-week high of. ₹1,935 per after investors reacted positively to the company’s Q4 business, which was released on April 10, after-market hours.
The company during the fourth quarter of the last fiscal year recorded around 10% YoY increase in total revenue, along with 15% YoY growth in revenue for its core business, maintaining consistent growth in sales volumes across various segments.
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Core Revenue (excluding revenue from Covid, Covid Allied Tests and PPP Contracts) growth was driven by volume growth of approximately 8% and RPP growth of 7% YoY for Q4 FY24. RPP growth was largely driven by growth in the specialty test segment, premium wellness segment and price increases.
The company’s B2C revenues grew 18% YoY for Q4 FY24. During the current quarter, the company paid off debt, resulting in debt-free status on March 31, 2024.
The company stated that competition intensity has decreased over the past 6 to 12 months, particularly as new industry entrants prioritize unit economics and profitability over deep discount strategies.
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However, competition remains moderate in specific pockets of metropolitan markets, particularly within the B2B segment. Despite this competitive environment, the company has improved its market share in its core geographies and is successfully expanding its presence in newer territories with an aggressive laboratory and network expansion strategy.
The company’s investments in expanding its network, acquiring talent, updating information technology and refining processes are yielding positive results, as evidenced by the increase in sales volumes in both the B2C and B2B sectors.
The EBITDA margins for Q4 FY24 demonstrate a consistent upward trajectory, both sequentially and annually. This margin improvement can primarily be attributed to increased volumes and successful price adjustments, according to the company.
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After experiencing a significant decline in CY22, with shares depreciating by 61.3%, they witnessed a remarkable recovery in the subsequent year, registering a gain of 26%. Moreover, in the current fiscal year, they have increased by 13% so far.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 12 Apr 2024, 10:18 IST