Metropolis Healthcare PAT declines 12%, consolidated revenue up 2.7%

Diagnostic service provider Metropolis Healthcare posted a 12 per cent year-on-year (Y-o-Y) decline in profit after tax (PAT) for the quarter concluded on September 30, 2023, reaching Rs 35.6 crore. However, there was a 2.7 per cent increase in its consolidated revenue from operations, which came in at Rs 308.5 crore, in contrast to Rs 300.3 crore in Q2FY23. This decrease in PAT can be attributed to the increase in total expenses, with a rise in the cost of laboratory testing charges and depreciation and amortisation expenses.

On a sequential basis, the company exhibited an 11.3 per cent increase in revenue, along with an improvement in PAT, which rose by 22.4 per cent.

The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at Rs 77.8 crore, declining 6.2 per cent year-on-year and growing 16.1 per cent sequentially.

Commenting on the results, Ameera Shah, Promoter and Managing Director of Metropolis Healthcare, stated, “Our volume growth currently is trending higher than the pre-Covid-19 level of 9 per cent. The company remains optimistic about scaling up revenue in the upcoming quarters, indicating a positive operating leverage play. Total Revenues for Q2FY24 were up by 3 per cent, primarily on account of a large business-to-government (B2G) contract insourced by the Government.”

Metropolis Healthcare has its presence in 20 states and 220 cities. Internationally, the company has a presence in South Asia, Africa, and the Middle East. Metropolis offers a range of more than 4,000 tests and profiles, including advanced tests in the diagnosis of cancer, neurological disorders, infectious diseases, and an array of genetic abnormalities.