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Metropolis Healthcare Q1 PAT declines 89% to Rs 3 cr

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Last Updated : Aug 12 2020 | 10:50 AM IST

The medical diagnostics company's consolidated net profit slumped 89.3% to Rs 2.88 crore on 29.6% drop in net sales to Rs 143.13 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) tanked 91.1% to Rs 3.51 crore in Q1 June 2020 as against Rs 39.34 crore in Q1 June 2019. Current tax expense for the quarter skid 81.7% to Rs 2.24 crore as against Rs 12.22 crore paid in Q1 June 2019. The Q1 result was declared after market hours yesterday, 11 August 2020.

Metropolis Healthcare said it conducted 2.65 million tests from 1.37 million patient visits. Cost rationalization program initiated in April 2020 to reduce fixed costs by 9%, semi-variable cost by 12% and variable cost by 21%. Goal for second quarter is to scale up Non-COVID 19 tests and subsequent revenues. In June 2020, Metropolis Healthcare achieved 100% revenues (including COVID-19 testing) compared to June 2019. With improving Non-COVID 19 revenues and cost rationalization measures we have achieved near normal EBITDA margin of 25.2% for June 2020.

EBITDA (before CSR and ESOP) dropped 76.61% to Rs 13 crore in Q1 FY21 as against Rs 55.60 crore in Q1 FY20. EBITDA margin (before CSR and ESOP) stood at 9.1% in Q1 FY21 as compared to 27.4% in Q1 FY20.

Metropolis Healthcare has received the approval to acquire balance equity stake of 35% in Metropolis Histoxpert Digital Services for a total cash consideration of Rs 32,648. Metropolis Healthcare also approved the acquisition of balance equity stake of 49% in Raj Metropolis Healthcare for a total cash consideration of Rs 82.33 lakh. Both the acquisitions are expected to complete within 3 months.

Ameera Shah, a promoter and Managing Director (MD) of Metropolis Healthcare, said: "Metropolis has been at the forefront of pandemic since day one and today we have seven COVID Capable Labs, the highest number for any private lab chain in the country. We offer the gamut of COVID tests at all locations for the benefit of patients and hospitals. Additionally, we have scaled up our home visits and digital touchpoints to offer convenience to our patients. While COVID-19 testing is expected to increase, we will continue our efforts to service the needs of all patients by scaling up Non-COVID testing in the coming quarter."

"Enhanced digital footprints, increased testing and optimizing our systems and processes through a technology transformation will help us bring efficiencies and aid us in the new normal. We will continue to keep safety, quality, and hygiene at the core of our patient service. With a strong balance sheet, improving Non-COVID revenues, increasing doctor consultation and cost control initiatives we remain confident of better revenue and EBITDA performance in quarters to come," she added.

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Shares of Metropolis Healthcare fell 0.52% to Rs 1,591.20 on BSE. Metropolis Healthcare is a diagnostics company with presence across 19 states in the country. The company's network as of 31 March 2020 consists of 124 laboratories and 2,731 patient service centers.

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First Published: Aug 12 2020 | 10:06 AM IST

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