Metropolis Healthcare (METROPOLIS) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit revenue, EBITDA, and PAT growth in Q3 FY25 and 9MFY25, with Q3 revenue up 11% year-on-year and B2C segment now 55% of total revenue.

• Focused on expanding high-value TruHealth and Specialty segments, leveraging digital transformation and micro-marketing strategies.

• Acquisition of Core Diagnostics to be finalized by end of February for INR 246.8 Cr, expected to be EPS accretive from year one and strengthen oncology and specialty diagnostics.

• Consolidated revenue for Q3 FY25 was ₹32,276.74 lakhs, with profit at ₹3,147.46 lakhs, both up year-on-year.

Financial highlights

• Q3 FY25 revenue at INR 323 crores (₹32,276.74 lakhs), up 10.9% year-on-year; B2C revenue at INR 178 crores, up 15%.

• Q3 EBITDA at INR 72 crores (22.2% margin), up 9.4% year-on-year; PAT at INR 31.5 crores, up 15%.

• Nine-month revenue at INR 986 crores (₹98,591.13 lakhs), up 12.5% year-on-year; EBITDA at INR 241.3 crores (24.5% margin), up 17.8%.

• Net cash surplus of INR 205 crores as of December 31, 2024; working capital cycle at 13 days.

• Earnings per share (consolidated, basic) for Q3 FY25 was ₹6.12, up from ₹5.30 in Q3 FY24.

Outlook and guidance

• On track for 13% revenue growth and EBITDA margins of 25%+ in Q4 FY25 and beyond.

• Targeting mid-teen revenue CAGR from FY23 to FY26 and aiming to restore pre-COVID margin profile.

• Margin dilution expected in the first year post-Core acquisition, with normalization to company levels in 2-3 years.

• Focus on expanding collection centers and digital transformation to drive future margin expansion.

• Acquisition of Core Diagnostics approved in December 2024, pending closure and not yet reflected in results.