MedPlus Health Services (MEDPLUS) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue from operations rose 20.6% YoY to ₹45,575.76 million, while PAT fell 47.1% to ₹501.05 million amid higher costs from rapid store expansion.

• Retail pharmacy remained the core business; diagnostics revenue reached ₹305.54 million as the Hyderabad pilot expanded its service footprint.

Financial highlights

• Consolidated total income grew 20.8% YoY to ₹46,036.54 million; EBITDA was ₹3,117.46 million versus ₹3,037.31 million in FY22.

• Consolidated PBT declined 60.0% to ₹471.63 million; PAT was ₹501.05 million versus ₹947.16 million, and diluted EPS was ₹4.17 versus ₹8.52.

• Gross margin improved to 21.9% from 21.1%; private-label share rose to 13.6% from 12.7%.

• Employee benefits expense increased 38.4%, depreciation and amortisation 52.1%, and other expenses 44.8%, reflecting new-store additions and related operating costs.

Outlook and guidance

• Growth priorities include deeper expansion in Tier 2 and smaller markets, higher private-label penetration, customer engagement, warehouse automation and operating efficiency.

• Diagnostics is planned to expand beyond the Hyderabad pilot into major urban centres; the pilot results were described as meeting expectations.

• Indian retail pharmacy was projected to grow at ~9% CAGR from FY20 to FY25, reaching USD 36 billion; organized pharmacy penetration was projected at 19.6% versus 10% in FY20.