Metropolis Healthcare revenue up 17%, targets industry-leading growth

Metropolis Healthcare posted a 9.21 per cent year-on-year (Y-o-Y) increase in profit after tax (PAT) during the fourth quarter of FY24, reaching Rs 36.40 crore. The company also posted a 17.13 per cent increase in its consolidated revenue from operations, which came in at Rs 331 crore. This increase in PAT can be attributed to the good performance of the core business and expansion of coverage.

On a sequential basis, the company exhibited a 13.70 per cent increase in revenue, and the PAT also increased by 34.09 per cent. The Ebitda (Earnings before interest, tax, depreciation and amortisation) rose 15.4 per cent Y-o-Y, reaching Rs 72 crore.

Speaking on the results, Ameera Shah, managing director of Metropolis Healthcare, stated, “Despite significant network expansion over the last two years, we achieved Ebitda margins of 25.5 per cent in Q4 FY24. Looking ahead, we expect additional revenue from both existing and new networks, coupled with improved operational efficiency, to sustain our current margin levels in FY25 and further enhance our margin profile beyond FY25. As we progress with our Metropolis 3.0 strategy, along with organic growth via existing network and expansion, M&A will be pivotal in elevating our position.”

Commenting on the same, Surendran Chemmenkotil, CEO of Metropolis Healthcare Ltd, said, “Looking ahead, we are confident in scaling up revenue in the coming quarters, showcasing a promising trend of positive operating leverage. Guided by our strategic vision, we have diligently focused on expanding our network, driving volume and revenue growth, and optimising efficiency, productivity, and margins. We have expanded our footprint significantly, from around 300 towns in FY23 to surpassing 600 towns by FY24, with intentions to extend our coverage nationwide. Going forward with the brand strength of Metropolis, talent pool, trusted partners for doctors and consumers, coupled with aggressive expansion plans, foray into adjacencies with opportunities of inorganic growth, we are optimistic about outnumbering the industry growth in terms of revenue growth and profitability.”

For the full year of FY24, the company posted a 5.18 per cent Y-o-Y increase in revenue; however, the PAT declined by 10.55 per cent for the period, reaching Rs 1,207.7 crore and Rs 127 crore, respectively. The Ebitda was down by 3.9 per cent, reaching Rs 303.5 crore.

Metropolis's core business revenues increased by 15 per cent Y-o-Y for the quarter and 13 per cent for the full year. This growth was accompanied by a patient volume increase of 7 per cent for the quarter and 9 per cent for FY24.

In Q4, the business-to-consumers (B2C) revenues grew by approximately 20 per cent Y-o-Y, and revenues from the Mumbai market also saw 20 per cent growth. TruHealth's Wellness and Specialised segments also witnessed revenue increases of 22 per cent and 17 per cent, respectively. TruHealth's premium wellness offerings contribute 15 per cent of the company's revenue in Q4 FY24. The company is currently reinforcing its strategy of expanding its footprint by venturing into Tier 3 and Tier 4 towns, while also concentrating efforts in vital clusters across core geographies.