National Stock Exchange of India Limited, BSE Limited
National Stock Exchange of India Limited, BSE Limited
National Stock Exchange of India Limited, BSE Limited
To, To,
Listing Department The Corporate Relations Department
National Stock Exchange Of India Limited, BSE Limited,
Exchange Plaza, Phiroz Jeejeebhoy Towers,
Bandra Kurla Complex, 25th floor, Dalal Street,
Bandra (East), Mumbai- 400 051 Mumbai - 400 001
NSE Symbol. VIJAYA BSE Scrip Code. 543350
Dear Sir/Madam,
Thanking you,
For Vijaya Diagnostic Centre Limited
Digitally signed by SUPRITA SURA REDDY
SUPRITA
DN: c=IN, o=PERSONAL, title=8913,
pseudonym=56fe28a97d9943a183577de997c5a0d6,
2.5.4.20=aa258bc0eddad165e7d7b0d2e49b6e12df4fc
34973ad0cae3aaf2080fd4ec376, postalCode=500033,
SURA REDDY
st=Telangana,
serialNumber=315074dfa1901f6701923f5b5a0f21556
b5e59ba771f420f4c8e9a31d3d3589e, cn=SUPRITA
SURA REDDY
Date: 2023.02.13 15:01:43 +05'30'
S Suprita Reddy
Chief Executive Officer
Encl.: As Above
Vijaya Diagnostic Centre Limited
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vijaya Diagnostic Centre Limited (the ‘Company’), have
been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be
made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no
representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness
of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any
liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are
individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of
the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the
Company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and
advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The
Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this
Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements
and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party
statements and projections.
All Maps used in the Presentation are not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy,
timeliness or completeness.
2
Q3 & 9MFY23 Financial Performance
Q3 FY23 – Performance Snapshot
COVID
2.49 Mn INR 9.2 Mn (1%)
Tests
INR 1,131.2 Mn 9.8% 89.2%
Revenue (YoY) (YoY)
0.77 Mn
Footfalls INR 1,121.9 Mn (99%)
Non-COVID
INR 442.9 Mn
117 EBIDTA
Centres
(opened 5 39.1%
closed 1) EBIDTA Margin
Note 1: Normalised PAT is excluding the Notional interest & Depreciation as per IND AS 116, Leases.
4
Management comment
Commenting on the Q3FY23 results performance, Ms. Suprita Reddy, CEO at Vijaya
Diagnostic Centre Ltd. said:
“We are pleased to report steady performance during a seasonally soft quarter for the industry. The
volume trends that were slow in the months of October and November, saw a significant improvement in
December and we hope to carry this momentum into the upcoming quarter.
Our ongoing efforts to expand the network through the addition of new hubs and spokes has been
progressing well. During this quarter, we opened 5 centers including one of its kind facility at Punjagutta.
Our newly opened state-of-the-art facilities in Punjagutta and Rajahmundry have received an
overwhelmingly positive response from our customers. Additionally, our efforts to improve digital
operations are proceeding smoothly, and we anticipate that these initiatives will considerably improve
operational efficiency and enhance customer experience across all of our centers.
Looking ahead, the outlook for the diagnostics industry remains positive, with increasing demand for
advanced medical services and a growing emphasis on preventive healthcare. We remain confident that
our integrated diagnostics offerings, well-established brand and our robust B2C network will enable us to
capitalize on the huge market opportunity.”
5
Key Financial Highlights – Q3 & 9M FY23
(INR Mn)
1,558
1,329
1,108 1,207 1,131
478 487 443
Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23
PAT & PAT Margin (%) Normalised PAT & PAT Margin (%)
22.8% 19.3% 14.5% 24.8% 16.9% 24.2% 20.8% 16.2% 26.2% 18.5%
860 905
571 625
Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23
6
Revenue Mix – Q3 & 9MFY23
(In %)
8% 3% 1%
66% 67% 64% 67% 65%
92% 97% 99%
34% 33% 36% 33% 35%
Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23
9MFY22 9MFY23
Recorded its highest ever December monthly volumes in a 0.87 0.90 0.88
0.76 0.79 0.80 0.80
seasonally soft quarter 0.68 0.73
• The 10,000 + sq.ft. facility at Tirupathi, Andhra Pradesh is expected to be inaugurated in February 2023
o The center will be equipped with advanced radiology modalities and equipment, including a 3T MRI, CT scan, Gamma
Camera, basic radiology and an automated lab
8
Q3 & 9MFY23 - Financial and Operational Discussions (Y-o-Y)
• Revenue from Operations increased by 2.1% YoY to Rs. 1,131 Mn, Non-Covid Revenues grew by 9.8% YoY
• During Q3FY23, the Non-COVID business comprised 99% of total revenue share as against 92% revenue
share in Q3FY22
Financial • Wellness share in Q3FY23 was up at 12.9% as against 8.5% in Q3FY22
Performance • Revenue composition from B2C segment stood at 95%
Q3FY23
• EBITDA stood at Rs. 443 Mn. EBITDA margin for the quarter was 39.1% as against 43.2% in Q3FY22
o Healthy non covid revenue coupled with operating leverage assisted margin performance despite costs
on account of new centres
• PAT stood at Rs. 164 Mn. translating into a PAT margin of 14.5%
• Normalised PAT stood at Rs. 184 Mn. translating into a PAT margin of 16.2%
• Revenue from Operations decreased by 2.3% YoY to Rs. 3,382 Mn, Non-Covid Revenues grew by 12.2% YoY
(INR Bn)
Radiology Pathology
980 980
Rest of India
Cash flow from Operations / EBITDA (%) Cash & Cash Equivalents (INR Mn)
Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9M FY22 9M FY23
11
Key Operational Highlights
Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23
504 1,464
1,418 1,426
477
459 460
454 1,303 1,299
Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23 Q3 FY22 Q2 FY23 Q3 FY23 9MFY22 9MFY23
• Company recorded steady growth in No. of tests on YoY basis led by Non-COVID customers in 9MFY23
12
Consolidated Profit & Loss Account – Q3 & 9M FY23
(INR Mn)
Particulars Q3 FY23 Q3 FY22 Y-o-Y Q2 FY23 Q-o-Q 9M FY23 9M FY22 Y-o-Y
Revenue from operations 1,131.2 1,107.8 2.1% 1,207.5 -6.3% 3,382.3 3,461.7 -2.3%
Cost of materials consumed 136.7 163.0 -16.2% 166.5 -17.9% 433.5 536.2 -19.2%
Employee benefits expense 197.3 182.2 8.3% 197.4 0.0% 589.5 514.6 14.6%
Other expenses 354.3 284.3 24.7% 356.1 -0.5% 1,030.1 852.5 20.8%
EBITDA 442.9 478.3 -7.4% 487.4 -9.1% 1,329.2 1,558.3 -14.7%
EBITDA Margin (%) 39.1% 43.2% -410 bps 40.4% -130 bps 39.3% 45.0% -570 bps
Other income 35.6 32.0 11.1% 33.0 7.7% 96.3 96.4 -0.1%
Depreciation and amortization
202.8 130.1 56.0% 159.0 27.6% 503.6 374.1 34.6%
expense
EBIT 275.6 380.2 -27.5% 361.4 -23.8% 921.9 1,280.7 -28.0%
Finance costs 55.4 41.8 32.7% 48.7 13.7% 151.8 121.2 25.3%
Profit before Tax 220.2 338.5 -34.9% 312.7 -29.6% 770.1 1,159.5 -33.6%
Tax expenses 55.6 83.9 -33.7% 78.0 -28.7% 195.3 291.7 -33.0%
Profit before Minority Interest 164.6 254.6 -35.4% 234.7 -29.9% 574.8 867.8 -33.8%
Minority Interest 0.9 1.7 -48.4% 1.4 -36.6% 3.4 8.2 -58.1%
Profit after Tax (PAT) 163.6 252.9 -35.3% 233.3 -29.9% 571.4 859.7 -33.5%
PAT Margin (%) 14.5% 22.8% -830 bps 19.3% -480 bps 16.9% 24.8% -790 bps
EPS – Basic (INR) * 1.6 2.5 -35.9% 2.3 -28.1% 5.6 8.4 -33.3% *Not annualized
Normalised PBT 246.8 359.1 -31.3% 335.8 -26.5% 841.8 1,220.7 -31.0%
Normalised PBT/PAT is excluding
Normalised PBT Margin (%) 21.8% 32.4% -1,060 bps 27.8% -600 bps 24.9% 35.3% -1,040 bps the Notional interest &
Depreciation as per IND AS 116,
Normalised PAT 183.5 268.4 -31.6% 250.6 -26.8% 624.9 905.4 -31.0% Leases.
Normalised PAT Margin (%) 16.2% 24.2% -800 bps 20.8% -460 bps 18.5% 26.2% -770 bps
13
Company Overview
Vijaya at a Glance
Vijaya Diagnostic Centre Limited is the largest integrated diagnostic chain in South India with 117 state-of-the-art centres spread across 19 cities
40+ 117
Mission Years of Experience Centres Quality
*ICMR: Indian Council of Medical Research; NSE: National Stock Exchange, BSE: Bombay Stock Exchange
16
At the Forefront of Introducing New Technologies
Integrated modular
DNA fragmentation COVID testing by RT-PCR Philips DS Achieva with
2019 2020 solution for Immunoassay 2020 2021 Ambient Experience
Index test in semen in Telangana & AP
& Chemistry assays
17
Our Pillars of Strength
18
One of the leading players in India’s high growth diagnostics market
Flagship
Centre
#1 #1
Reference Lab
Customers
Hubs
#26
Samples
#15
Customer (Walk-in)
Home Collection
B2B Hospitals & Labs
Sample Flow
Patient Flow
Spokes
#90
Flagship Centre = Lab Sample Collection + Basic Radiology + Complete Advanced Radiology (MRI, CT Scan, SPECT & PET CT)
Hubs = Lab Samples Collection + Basic Radiology + Advanced Radiology (MRI / CT Scan / SPECT)
Spokes = Lab Samples Collection + Basic Radiology
Basic Radiology = ECG / X-ray / USG / Mammography / BMD / TMT / 2D Echo / EEG / ENMG / Endoscopy, etc.
20
…offering One-Stop Solutions for Pathology & Radiology
21
High brand recall driving customer stickiness
(INR)
Sticky individual customer
1,431
1,228 1,214 1,276
23 200+
Fully Integrated Radiology
Advance Laboratory
MRI Machines Radiologists, Lab Doctors & Information Systems (RIS) and
Information Management
Physicians Picture Archive and
System (LIMS)
Communication Systems (PACS)
5 11
Front end IT infrastructure enabling…
NABH Accreditations NABL Accreditations
• At the forefront of introducing new tests by adopting the latest medical Provide Uniform Experience to
technologies customers from booking
appointments to accessing
• Among the first diagnostic service provider in South India to offer PET-CT scan reports online
Monitor Technical
in 2008
Operations
23
Experienced Board of Directors
Dr. S Surendranath Reddy - Executive Chairman Dr. D Nageshwar Reddy - Non-executive, Independent Director
▪ Founder of Vijaya with 40+ years of experience in building Vijaya as South
India’s largest integrated diagnostic chain ▪ Chairman of Asian Institute of Gastroenterology (AIG), Hyderabad
▪ Holds Bachelor’s degree in Medicine and Provisional degree of Doctor of ▪ Awarded Padma Shri and Padma Bhushan by Government of India
Medicine in Radiology ▪ D.M in Gastroenterology from PGIMER Chandigarh
24
Strong Management Team
Dr. S. Surendranath Reddy Mr. Sunil Chandra Kondapally Ms. Suprita Reddy Mr. Narasimha Raju K.A
Executive Chairman Executive Director Chief Executive Officer Chief Financial Officer
▪ 40+ years of experience in ▪ With Vijaya since incorporation ▪ With Vijaya since 2003 and ▪ Associated with Vijaya from
building Vijaya as South India’s and experienced in operations, heads overall strategy, clinical June 2017 to Nov 2020 and
largest integrated diagnostic quality accreditation, finance, excellence, operations and rejoined in March 2021
chain marketing and network expansion of the company ▪ 14+ years of experience in
▪ Holds Bachelor’s degree in expansion departments ▪ Awarded Women Leadership audit, financial reporting,
Medicine and Provisional ▪ 17+ Years of experience in Award in Healthcare by ABP in regulatory compliance and
degree of Doctor of Medicine healthcare industry & founded 2019 accounting advisory
in Radiology Trikona Pharmaceuticals Pvt. ▪ Holds bachelors degree in ▪ Previously worked with SR
▪ He is a life member of the Ltd. (2016) and QPS Bioserve commerce from Osmania Baltliboi & Co., NSL Renewable
Indian Radiological and India Pvt. Ltd. (2004) University Power Pvt. Ltd. etc
Imaging Association. ▪ Holds bachelor’s degree in ▪ Holds bachelor’s degree of
electrical engineering from commerce from Osmania
Florida State University University and member of the
Institute of Chartered
Accountants of India
25
Awards & Accolades
Healthcare Leadership Awards Pride of India Brands Award One of the Best Healthcare Indo Global Award for Company of the Year -
Best Healthcare Brands 2022
2022 2022 Brands 2021 Healthcare Excellence Healthcare
Leading Diagnostic Chain of India’s Greatest Brands 2020- India’s Greatest Brands 2020- Leading Diagnostics with Most Trusted and Best Quality Healthcare Entrepreneur of
the Year 21 Pride of Nation 21 Pride of Nation Excellence in Quality & Safety Diagnostic services in India the Year – Dr. Surendra Reddy
Fastest Growing Brands Best Diagnostic Centre of the Leading Chain of Diagnostics & Best Diagnostic Service Most Trusted Diagnostic Telangana Healthcare
(Pride of the Nation) Year Imaging Provider of the Year Centre of the Year Leadership Awards
26
Shareholding Pattern as of 31st Dec 2022
Others
FII’s
6.5% Marquee Institutional Investors
Wasatch Advisors
24.3%
Nippon Life India
Promoter &
Promoter
group
Aberdeen Standard Investments
55.0%
Axis Mutual Fund
14.2%
Fidelity Group
27
Strategy Going Forward
Deepen Footprint in our Core Markets - Telangana & Andhra Pradesh
29
Expand in Adjacent Geographies & East India
Network (FY22)
◼ Expand in concentric circles given our ◼ Hence, Kolkata to be our focus area for
hub and spoke model medium to long term growth
61-68
Rest of the Wellness & Rest of the
Wellness &
market Preventive market
Preventive
90% 9% - 10% 89%
11%
FY20 FY23
◼ Increasing chronic and lifestyle diseases ◼ Increase diagnostic services by offering additional preventive and wellness services through adoption of
new cutting-edge diagnostic testing technology
◼ Corporate tie-ups ◼ Providing home collection services and point-of-contact testing to complement walk-in
◼ Increasing disposable income ◼ Expand specialty tests, disease specific profiles and provide customized packages
◼ Increasing service offerings ◼ Grow our corporate customer base by catering to their needs
◼ Expansion of chronic disease management and wellness programs
95 3.62 9.32
80 7.91
73 2.79 6.99 7.09
61 2.63
2.38
FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22
Test per Footfall (Nos) Revenue per Test (INR) Revenue per Footfall (INR)
Impact of COVID-19
531
496 1,431
2.93 2.83
2.69 419 428 1,276
2.57 1,228 1,214
FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22
33
Consistent Financial Performance
(INR Mn)
CAGR:16%
4,624 CAGR:24% 1,097
2,037
CAGR:34%
3,767
3,388 1,660 845
2,926
1,326 625
1,081
459
FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22
22.4% 23.7%
44.1% 44.1%
18.5%
15.7%
39.1%
37.0%
1,729
1,215
43% 23%
38% 23% 23%
33% 22%
30%
ROCE (Pre-cash): PBIT ex Other income / (Total Assets – Cash – Current Liabilities) CFO = Cash flow from Operations
35
Annexure
Consolidated Profit & Loss Account
(INR Mn)
37
Consolidated Balance Sheet
(INR Mn)
Assets Mar-22 Mar-21 Mar-20 Mar-19 EQUITY AND LIABILITIES Mar-22 Mar-21 Mar-20 Mar-19
*Current investments + investments with maturity more than 12 months (part of other non-current financial assets) 39
THANK YOU
Vijaya Diagnostic Centre Limited (VDCL) Citigate Dewe Rogerson (CDR India)
www.vijayadiagnostic.com [email protected]
[email protected]
#6-3-883/F, Ground Floor, FPAI Building, Punjagutta, Officers Colony, Near Topaz Building, Hyderabad-500082, Telangana, India.