Metropolis Healthcare (METROPOLIS) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue from operations rose 17.5% to ₹76,118.18 lakh; PAT increased 10.5% to ₹12,361.28 lakh. Adjusted PAT, before CSR, one-time share-based and other expenses, grew 16.2% to ₹13,083.40 lakh.

• Growth reflected faster-than-industry performance, 15.5% growth in patient visits and continued expansion of the service network; outlook remained positive for short- and medium-term growth.

Financial highlights

• Consolidated revenue from operations was ₹76,118.18 lakh versus ₹64,716.43 lakh in FY18, up 17.5%; total income was ₹76,939.50 lakh.

• Consolidated PAT rose 10.5% to ₹12,361.28 lakh from ₹11,184.16 lakh; basic EPS was ₹24.06 versus ₹21.00.

• Reported EBITDA was ₹19,924.01 lakh, up 15.5%; EBITDA before CSR, one-time share-based and other expenses was ₹20,734.11 lakh, up 16.4%.

• Standalone revenue from operations increased 19.8% to ₹58,120.81 lakh; standalone PAT rose 5.9% to ₹10,145.70 lakh.

• Reported consolidated operating expenses were ₹58,141.30 lakh; employee benefits expense was ₹17,620.71 lakh and other expenses were ₹20,552.68 lakh.

Outlook and guidance

• FY20 priorities included faster network expansion and execution, increasing retail contribution, enhancing customer experience and strengthening technology capabilities.

• Target to raise B2C contribution to 65% in focus cities; individual-patient revenue share had risen from 38% in FY16 to 42% in FY18, with a longer-term goal of 60%.

• TruHealth wellness screening launched in 36 cities; preventive diagnostics was expected to grow at ~20% CAGR over the next three financial years.

• Indian diagnostics market was projected to rise from ₹596 billion in FY18 to ₹802 billion in FY20, supported by preventive care, insurance penetration and a shift toward organised providers.