Metropolis Healthcare records consolidated revenue growth of 12.6% in FY20
Despite the COVID-19 outbreak, the company has reported a record revenue of INR 856cr in FY20 against Rs 760 crore in FY19, recording a growth of 12.6%
Metropolis Healthcare Ltd, a leading diagnostic service provider, announced its audited consolidated financial results for the financial year (FY20) ended March 31, 2020 and the fourth quarter (Q4FY20) ended March 31, 2020.
Despite the Covid-19 outbreak, the company has reported a record revenue of Rs 856 crore in FY20 against Rs 760 crore in FY19, recording a growth of 12.6%. The company recorded ROCE of 40.0% and ROE to 27.0% in FY20 and revenue growth is estimated at 15.1% in Q4FY20 and 15.9% in FY20 adjusting for Covid-19 impact.
Said Ameera Shah, Promoter and Managing Director, Metropolis Healthcare Ltd, “We are at frontlines of COVID 19 testing and our team is working with a deep sense of urgency and commitment to make sure that patients and doctors get reliable diagnosis as early as possible. The Pandemic has put the diagnostic industry at the cusp of a dynamic shift and established pathology chains like us are set to benefit and cement leadership position.”
“In March, we lost Revenue and EBITDA of around Rs 25crore and Rs 17crore respectively. We have initiated Service Network rationalization with a view to increase the productivity and efficiency of the network. Revenue per patient stands at Rs 856 in FY20 as compared to Rs 854 in FY19,” she added.
The PAT before exceptional items is Rs 147 crore in FY20 as against Rs 129 crore in FY19.
Additionally, as business returns to normal, she added, the momentum will shift in favour of COVID capable labs with customers increasingly choosing trusted brands that offer quality, safety, and reliability. Increased engagement with government and regulatory authorities has opened new avenues and possibilities in the future. “Digital transformation, a growing test menu, and a relentless pursuit of superior customer experience has made Metropolis stronger in our core markets even as we acquire market share in other geographies. We will continue to put quality, safety, and hygiene at the core of patient service,” she added.
Metropolis is one of the first private laboratories to commence Covid-19 testing in the country, five fully equipped and audited labs for COVID testing. Its dedicated COVID Lab in Maharashtra is also accredited by NABL for COVID 19 testing. Despite the pandemic crisis and partial loss of revenue for the month of March FY20, the company recorded ROCE of 40.0% and ROE to 27.0% in FY20 .
“With strong Balance Sheet of zero-debt and high cash reserves of Rs 223 crore, Metropolis is poised to increase market share. OCF / EBITDA improved significantly to 92.7% in FY20 from 43.9% in FY19. Our OCF to EBIDTA ratio is constantly increasing and with no large Capex requirements, Free Cash flows of the company will further strengthen Balance Sheet to support growth A total of 49 new tests (1 in Infectious Molecular, 6 in Chemistry, 40 in molecular pathology and 2 in clinical genetics) have been validated and added to the test menu in Q4FY20, thus expanding our capabilities to conduct more specialised tests,” she added.