Shares of Metropolis Healthcare, one of the leading Indian diagnostics companies, spiked 7.54% in today’s intraday session to hit a new 52-week high of ₹1,935 apiece after investors reacted positively to the company’s Q4 business, which was released on April 10, post-market hours.
The company during the fourth quarter of last fiscal year recorded around a 10% YoY increase in overall revenue, alongside 15% YoY growth in revenue for its core business, maintaining a consistent rise in sales volumes across various segments.
Core Revenue (excluding revenue from Covid, Covid Allied Tests, and PPP Contracts) growth was driven by volume growth of approximately 8% and RPP growth of 7% YoY for Q4 FY24. RPP growth was largely driven by growth in the specialty tests segment, premium wellness segment, and price increase.
The company’s B2C revenues grew 18% YoY for Q4 FY24. During the current quarter, the company has repaid debt, resulting in a debt-free status as of March 31, 2024.
The company stated that competition intensity has been easing over the past 6 to 12 months, particularly as new industry entrants prioritize unit economics and profitability over deep discounting strategies.
However, competition remains moderate in specific pockets of metropolitan markets, particularly within the B2B segment. Despite this competitive environment, the company has enhanced its market share in its core geographies and is successfully expanding its presence in newer territories with an aggressive lab and network expansion strategy.
The company’s investments in expanding its network, acquiring talent, upgrading information technology, and refining processes are yielding positive results, as evidenced by the increase in sales volumes in both the B2C and B2B sectors.
The EBITDA margins for Q4 FY24 demonstrate a consistent upward trajectory, both sequentially and annually. This improvement in margin can primarily be attributed to increased volumes and successful price adjustments, as per the company.
After experiencing a significant downturn in CY22, with shares depreciating by 61.3%, they witnessed a notable recovery in the subsequent year, recording a gain of 26%. Furthermore, in the current fiscal year, they have surged by 13% thus far.