Metropolis Healthcare (METROPOLIS) Q4 22/23 earnings summary

Executive summary

• FY23 revenue and profitability declined as COVID testing normalized, while core business grew 15% YoY excluding acquisitions, PPP and COVID testing.

• Strategy shifted toward Metropolis 3.0: expanding D2C wellness and chronic testing alongside network growth, scientific capabilities and digital investment.

Financial highlights

• Consolidated revenue from operations was ₹1,148.21 Cr, down 6.62% YoY; EBITDA was ₹293 Cr versus ₹349 Cr, and PAT was ₹143.39 Cr versus ₹214.69 Cr.

• Consolidated basic EPS was ₹27.91 versus ₹41.87; diluted EPS was ₹27.81 versus ₹41.66.

• Non-COVID revenue was ₹1,104 Cr, up 18% YoY including Hitech; non-COVID EBITDA was ₹276 Cr. EBITDA before CSR and ESOP was ₹304.4 Cr, with a 26.5% margin.

• B2C revenue grew 20% YoY; wellness revenue grew 43% YoY, with the wellness segment recording 45% FY23 growth.

Outlook and guidance

• FY24 PAT margin was expected to improve, supported by lower interest costs following debt repayment by H1 FY24.

• Plans call for 2,500 additional collection centers over three years, versus an earlier target of 1,500; Hitech planned 50 additional centers within the next year.

• More than 300 super-advanced tests are planned over three years, with a stated pace of one new test every three days.

• Growth priorities include wellness and chronic testing, deeper Tier 2/3 penetration, North and East expansion, digital engagement and scientific leadership.