Metropolis Healthcare (METROPOLIS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered 13.1% revenue growth to INR 313.4 crore, with EBITDA up 21.2% and PAT up 31.3%, reflecting strong operating leverage and margin expansion.

• Patient volumes grew 7% and test volumes 10% YoY, driven by network expansion, higher test per patient, and increased footfalls.

• B2C revenue rose 18.4% YoY, now contributing 54% of total revenue, supported by TruHealth and specialty segment growth.

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

• Strategic focus remains on scientific innovation, specialty diagnostics, geographical expansion, and digital transformation.

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 by 170 bps YoY to 25%; PAT margin rose to 12.2%, also 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 contributed 54% of total, up from 51% YoY; 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.

• Plans to add 90 labs and 2,000 service centers by FY25, focusing on Tier II and III towns.

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

• No immediate plans for further price hikes; focus remains on volume and product mix improvements.