Entero Healthcare Solutions (ENTERO) Q3 23/24 earnings summary

Executive summary

• Q3FY24 consolidated revenue rose 20% YoY to ₹9,926.33m; net profit was ₹69.81m versus ₹35.67m.

• 9MFY24 revenue increased 20% to ₹28,881.34m; EBITDA rose 90% to ₹830m and net profit reached ₹186.23m versus a ₹72.90m loss.

• Distribution reach in 9MFY24 included 79,400+ retail customers, 3,300+ hospital customers, 1,900+ manufacturer relationships and 501 districts.

Financial highlights

• Q3FY24 gross profit was ₹902m (+31%), EBITDA ₹286m (+54%) and PAT ₹70m (+96%).

• Q3FY24 gross margin expanded 81 bps YoY to 9.1%; EBITDA margin rose 64 bps to 2.9%.

• 9MFY24 gross profit was ₹2,593m (+31%); gross margin improved 80 bps to 9.0% and EBITDA margin expanded 107 bps to 2.9%.

• Consolidated PBT was ₹83.23m in Q3 and ₹219.95m for 9M; 9M basic and diluted EPS was ₹5.18 versus a loss of ₹2.34.

Strategy and operating footprint

• Growth priorities include wider geographic reach, technology and execution, customer-base and wallet-share growth, manufacturer collaborations, acquisitions, product adjacencies, private labels and services.

• 9MFY24 footprint included 78 warehouses, 67,100+ SKUs and 501 districts, up from 71 warehouses, 60,300+ SKUs and 476 districts in 9MFY23.

• 34 acquisitions completed since inception, with a pan-India approach to acquiring and integrating smaller distributors.