Metropolis Healthcare gains on strong Q3 biz update

Metropolis Healthcare shares climbed 2.27% to Rs 2,038 after the company announced double-digit revenue growth for Q3FY25, despite it being a seasonally slow period for diagnostics.

For the quarter, the company's revenues increased by approximately 11% year-on-year (Y-o-Y), driven by growth in patient volumes, test volumes, a favorable product mix, and improved realizations.

Q3 is traditionally a lean period for diagnostic companies, especially those operating in the Western and Southern regions of India. Despite this, Metropolis Healthcare reported a modest Y-o-Y increase in margins, overcoming the challenges of seasonally lower revenue growth and limited operating leverage.

The company achieved mid-teens revenue growth in its B2C segment and low double-digit growth in its B2B segment. However, overall revenue growth was tempered by a decline in the institutional business, which remains a non-core focus area.

 

A standout performer was the Truhealth wellness and bundling segment, which emerged as the fastest-growing category, registering a remarkable 25% growth in Q3FY25.

B2C revenues grew around 15% Y-o-Y, bolstered by industry-leading testing capabilities and strong consumer trust in the brand. The company is also exploring a price increase in select cities, effective Q4FY25, to strengthen its revenue base further.

As of December 31, 2024, Metropolis Healthcare is debt-free and holds cash reserves of approximately Rs 200 crore. The company remains optimistic about sustained revenue growth and margin expansion, while also being open to inorganic growth opportunities to bolster its market position.

Metropolis Healthcare is a diagnostics company, with presence in 23 states & 601 towns. Internationally, the company has presence in South Asia, Africa, and the Middle East. It offers a comprehensive range of 4,000-plus tests and profiles that include advanced tests in diagnosis of cancer, neurological disorders, infectious diseases, and an array of genetic abnormalities. The company has a network of over 202 labs, 4,336 collection centres and over 10,000 touch points.

Metropolis Healthcare reported 31.22% increase in consolidated net profit to Rs 46.52 crore in Q2 FY25 as against Rs 35.45 crore posted in Q2 FY24. Revenue from operations grew 13.38% YoY to Rs 349.79 crore in the quarter ended 30 September 2024.

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