Metropolis Healthcare (METROPOLIS) Q4 21/22 earnings summary

Executive summary

• FY 2021-22 delivered record revenue, EBITDA and PAT; non-COVID business grew 35% YoY, while COVID-19 income contributed 16% of revenue.

• Strategic priorities include deeper network expansion, digitization, home testing and growth in B2C, chronic and wellness diagnostics.

Financial highlights

• Revenue rose 23% YoY to ₹1,228 crore; reported EBITDA was ₹349 crore, up 21%, and PAT rose 17% to ₹215 crore.

• Adjusted for CSR and ESOP costs, EBITDA was ₹362 crore, up 20% YoY; these are management’s stated adjusted figures.

• Consolidated basic EPS was ₹41.87 versus ₹35.97 in FY 2020-21; diluted EPS was ₹41.66 versus ₹35.79.

• Revenue per test was ₹479 and revenue per patient ₹914; both were below FY 2020-21 levels, when higher COVID testing revenue boosted the comparisons.

Outlook and guidance

• The 90:30 project targets 90 labs and 1,800 collection centers in 30 months; the stated aim is to restore new-lab EBITDA margins to group levels in 2.5 years.

• Expansion plans target laboratories in 70-80 cities and collection centers in 225 cities, with a broader reach across 100-200 Indian cities.

• FY 2022-23 priorities include acute-illness penetration in tier 2 and tier 3 cities, wellness packages and loyalty programs, home testing, digitization and clinician engagement.

• Hitech integration is expected to broaden mid-market access and increase B2C contribution in Chennai and Bengaluru; 100-200 additional tests were planned for Chennai.