Metropolis Healthcare (METROPOLIS) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue from operations rose 12.42% to ₹856.41 crore; PAT increased 3.19% to ₹127.55 crore, with growth in tests and patient visits.

• COVID-19 disrupted operations late in March; testing began in March 2020, and seven approved COVID-capable labs were established by the time of the report.

• Priorities included expanding COVID testing, restoring non-COVID volumes, improving lab utilization, and building digital and automation capabilities.

Financial highlights

• Consolidated revenue from operations ₹856.41 crore vs ₹761.18 crore, up 12.42% YoY; total revenue including other income ₹864.97 crore vs ₹769.40 crore.

• Consolidated PAT ₹127.55 crore vs ₹123.61 crore, up 3.19% YoY; basic EPS ₹25.36 vs ₹24.06 and diluted EPS ₹25.25 vs ₹24.02.

• EBITDA ₹232 crore vs ₹200 crore; management highlights state 12.9% growth, while the MD&A financial table reports 16%.

• Exceptional items totaled ₹24.53 crore, including provisions for IL&FS investment impairment and disputed/old receivables; excluding these items, the reported PBT before exceptional items was ₹193.78 crore consolidated.

• Patient visits reached 10.00 million, up 11.3%; tests conducted reached 19.62 million, up 15.7% YoY.

Outlook and guidance

• COVID impact was expected to reduce Q1 FY21 revenue and profitability; operations were partially open in April and ramping up in May, with future impact uncertain.

• Revenue in the last 15 days of March fell 40–50% YoY; April revenue was ~40% of April 2019, while May reached 60–65% through May 28.

• EBITDA was negative in April and at breakeven in May to date; positive EBITDA was expected in June, alongside a gradual recovery in samples and walk-ins.

• Focus areas included higher lab throughput, revenue per centre, wellness, home collection, B2B growth in North and East, and rationalizing the service network.