Krsnaa Diagnostics (KRSNAA) Q1 2025 earnings summary

Executive summary

• Achieved 22% year-on-year revenue growth in Q1 FY25, reaching INR 1,702.32 million, with EBITDA up 39% to INR 442 million and PAT up 22% to INR 179.21 million, maintaining a 26% EBITDA margin and 11% net margin.

• Focused on expanding diagnostic services in underserved Tier 2 and 3 cities, leveraging a strong PPP presence and scaling up retail operations.

• CEO resigned effective July 31, 2024, with a new Group CEO appointed to drive retail strategy; Risk Management Committee reconstituted.

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

• Notice of the 14th Annual General Meeting scheduled for September 21, 2024, and final dividend of Rs. 2.50 per share for FY2024 recommended.

Financial highlights

• Q1 FY25 consolidated revenue from operations: INR 1,702.32 million, up 22% year-on-year; EBITDA: INR 442 million, up 39%; PAT: INR 179.21 million, up 22%.

• EBITDA margin improved to 26% before CSR & ESOP; PAT margin at 11%.

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

• Net debt-free status maintained with cash and equivalents at INR 240 crore as of June 30, 2024.

• Receivables at INR 190 crore (100 days), with significant collections post-election.

Outlook and guidance

• Committed to 25% base revenue growth for FY25, with an aspirational target of 30%.

• CapEx planned at INR 170 crore for FY25, with INR 22 crore spent in Q1.

• Strategy focuses on expanding into underpenetrated markets via new PPP tenders and leveraging existing infrastructure.

• Retail expansion and process automation expected to improve margins and working capital cycle.