MedPlus Health Services (MEDPLUS) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 23.1% YoY to ₹37,792.79m; EBITDA increased 27.5% to ₹3,037.3m and PAT grew 50.1% to ₹947.16m.

• Store network expanded by 747 to 2,748; plans call for 1,000+ additional stores, wider private-label offerings and healthcare services.

Financial highlights

• Consolidated total income was ₹38,106.42m, up 23.3% YoY; profit before tax reached ₹1,179.43m, up 24.0%.

• Cost of goods sold was 78.9% of revenue, down from 79.0%; gross margin improved to 21.1% from 21.0%.

• PAT rose to ₹947.16m from ₹631.11m; basic EPS was ₹8.55 and diluted EPS ₹8.52, versus ₹6.13 and ₹5.89.

• Employee benefits expense rose 16.3% to ₹3,939.2m, while its share of revenue fell to 10.4% from 11.0% as scale benefits offset store additions.

Outlook and guidance

• Plans include adding 1,000+ stores, deepening presence in existing clusters and entering new cities and states through a cluster-based approach.

• Private-label expansion targets nutrition, wellness and pharma therapies for sub-chronic and chronic conditions; automation and direct sourcing are intended to support margins and efficiency.

• Healthcare expansion includes diagnostics and adjacent services; a full-service diagnostic centre opened in Hyderabad in March 2022, with an integrated radiology pilot also launched.