Krsnaa Diagnostics (KRSNAA) Q1 2025 earnings summary

Executive summary

• Achieved strong operational and financial growth in Q1 FY25, with 22% year-over-year revenue growth and 22% PAT increase, driven by network expansion, operational efficiency, and a focus on underserved regions and retail diagnostics.

• Leadership transition with the resignation of CEO Dr. Prashant Pandurangrao Deshmukh effective July 31, 2024, and appointment of a new Group CEO, alongside reconstitution of the Risk Management Committee.

• Serviced over 40 million patients in the last three years, with presence in 17 states and 150+ districts.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on August 6, 2024.

• Final dividend of Rs. 2.50 per share for FY2024 recommended, with record date set for September 13, 2024.

Financial highlights

• Q1 FY25 consolidated revenue from operations reached ₹1,702.32 million (INR 170 crore), up 22% year-over-year; EBITDA was ₹442 million (INR 44 crore), up 39%, with a margin of 26%.

• Consolidated profit after tax for Q1 FY25 was ₹179.21 million (INR 18 crore), with an 11% margin and 22% year-over-year growth.

• PAT grew 14% sequentially from Q4 FY24 (adjusted for depreciation benefit).

• Diluted EPS increased to ₹5.55 from ₹4.66 year-over-year.

• Gross debt at INR 170 crore and cash/cash equivalents at INR 240 crore as of June 30, 2024; net debt-free status maintained.

Outlook and guidance

• Targeting 25% base revenue growth for FY25, with an aspirational goal of 30%.

• Strategy focuses on expanding into underpenetrated markets via new PPP tenders, enhancing retail presence, and leveraging digital transformation for margin and working capital improvement.

• Long-term visibility from multi-year PPP contracts in Maharashtra (15 years), Odisha (12 years), Assam (5 years), and Madhya Pradesh (8+2 years).

• Growth strategy aims for steady growth independent of large individual projects.