Metropolis Healthcare (METROPOLIS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 13.1% year-over-year to INR 313.4 crore, with EBITDA up 21.2% and PAT up 31.3%, surpassing industry average.

• Margins expanded, with EBITDA margin at 25% and PAT margin at 12.2%, both up 170 bps YoY.

• Patient volumes grew 7% and test volumes 10% YoY, supporting robust top-line growth.

• B2C revenue rose 18.4% YoY, now contributing 54% of total revenue, driven by price increases, volume gains, and network expansion.

• TruHealth segment revenue increased 28% YoY, now contributing 17% of total revenue, driving higher value per customer.

Financial highlights

• Revenue from operations reached INR 313.4 crore, up 13.1% YoY; EBITDA at INR 78.2 crore, up 21.2% YoY; PAT at INR 38.1 crore, up 31.3% YoY.

• EBITDA margin improved to 25% (up 170 bps YoY); PAT margin at 12.2% (up 170 bps YoY).

• Revenue per patient increased 6% YoY to INR 1,031; revenue per test up 3% YoY to INR 497.

• B2C revenue rose 18.4% YoY to INR 169 crore; B2B revenue grew 12.4% YoY.

• Net cash surplus stood at INR 137 crore as of June 30, 2024.

Outlook and guidance

• FY25 revenue growth guidance maintained at 13%-15%, driven by high single-digit volume growth and favorable product mix.

• EBITDA margin expected between 25%-26% for the full year, with further expansion anticipated in stronger quarters.

• Targeting a mid-teen revenue CAGR from FY23 to FY26, aiming to be the fastest-growing diagnostics company among national chains.

• On track to add 90 labs and 2,000 service centers by FY25, with a focus on Tier II and III cities.

• Growth strategy includes organic expansion, digital initiatives, and selective acquisitions.