Metropolis Healthcare (METROPOLIS) Q4 20/21 earnings summary

Executive summary

• FY21 delivered record revenue, EBITDA and PAT, supported by COVID testing, recovery in non-COVID diagnostics and operating leverage.

• Operations continued through lockdowns as an essential service; full operations resumed from Q2, while the second COVID wave increased uncertainty into FY22.

Financial highlights

• Consolidated revenue from operations was ₹998 crore, up 17% YoY; PAT was ₹183 crore, up 44% YoY.

• EBITDA was ₹288 crore, up 24% YoY; EBITDA before CSR and ESOP was ₹301.1 crore, up 29%, with margin expanding 290 bps to 30.2%.

• Consolidated basic EPS was ₹35.97 versus ₹25.36; diluted EPS was ₹35.79 versus ₹25.25.

• Patient visits were 9.8 million, down 2% YoY; 19 million tests were conducted, while revenue per patient rose to ₹1,015 from ₹856.

Outlook and guidance

• Planned three-year expansion includes 90 additional stat labs and ~1,800 collection centres across 100–150 more cities; expected capex is ₹30–35 crore.

• Network expansion may reduce EBITDA margin by 75–100 bps in year one; cost actions are expected to keep overall consolidated margins neutral.

• Management anticipated higher COVID-allied test revenue in FY22 and expects non-COVID diagnostics to benefit as vaccination progresses.

• Home collection, safety and hygiene, point-of-care testing and digital integration were identified as opportunities to gain share and improve productivity.