Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Thyrocare Technologies Ltd (BOM:539871, Financial) achieved a 20% year-on-year revenue growth, driven primarily by its pathology business.
- The company has expanded its franchise network to over 11,000 active franchisees, contributing to a 14% increase in test volumes.
- Thyrocare Technologies Ltd (BOM:539871) is India's first and only 100% NABL accredited national laboratory chain, reflecting its commitment to quality.
- The company has successfully integrated acquisitions such as Polo Labs and Vimta Labs, enhancing its presence in North and South India.
- Thyrocare Technologies Ltd (BOM:539871) has launched new specialized tests and expanded its test menu, contributing to higher revenue realization.
Negative Points
- The company's effective tax rate is expected to be around 28% to 29%, which could impact net profitability.
- There is a potential risk of margin pressure due to competitive pricing strategies from organized and unorganized players.
- The receivables have increased significantly, partly due to extended credit periods offered to partners.
- The company's expansion into new geographies, such as Tanzania, is still in its nascent stages and may take time to contribute significantly to revenue.
- Thyrocare Technologies Ltd (BOM:539871) faces challenges in maintaining high EBITDA margins amidst ongoing investments in specialized tests and new labs.
Q & A Highlights
Q: Why did Thyrocare pay an excess tax of INR11 crore this quarter, resulting in a 54% tax rate?
A: Alok Jagnani, CFO, explained that this was not an excess tax but a deferred tax provision related to past investments in NHL. The provision was reversed due to NHL's improved performance, leading to a tax reversal of INR11.2 crore.
Q: What contributed to the highest EBITDA margin recorded in the past two to three years?
A: Nitin Chugh, Chief Commercial Officer, attributed the margin expansion to increased volumes leading to year-end discounts, operating leverage, and reduced provisioning for doubtful debts.
Q: Can you provide guidance for FY26 regarding revenue and volume growth?
A: Alok Jagnani, CFO, stated that while specific guidance is not provided, they expect mid-teens revenue growth, considering the high base and industry growth rates. Volume and price growth are expected to be similar.
Q: What factors contributed to the revenue and margin growth in the pathology segment and franchise network?
A: Rahul Guha, CEO, explained that the growth was driven by adding smaller franchise partners, enhancing the test mix, and introducing new technologies. The franchise network's revenue growth was also supported by a tiered pricing structure.
Q: What is the status of the PharmEasy merger speculation?
A: Rahul Guha, CEO, clarified that the merger rumors were media speculation, and there have been no material discussions or developments regarding a merger with PharmEasy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
