The company clocked its highest sales in Q2 due to the uptick in the Covid business.
Thyrocare Technologies was one of the top gainers on the BSE 500 today and was seen trading up by 5% after reporting a healthy set of Q2FY22 numbers.
Thyrocare Technologies Ltd engages in the provision of independent diagnostic and pathological laboratory services. It operates through the segments of Diagnostic Testing Services, Imaging Services and others.
The company reported a topline growth of 14.98% to Rs 176.21 crore in the quarter ended September 2021 as compared to Rs 153.25 crore in the same period last year. The revenue from operations primarily consists of revenue from Covid of Rs 69 crore, mainly from Government contracts. The management of the company expects that the revenue from this segment is expected to taper down steeply in Q3 with a decline in Covid-19 cases. Meanwhile, the non-Covid business revived significantly in sequential quarters and reached to pre-Covid level. In particular, the per sample and per patient realization improved across all the segments over the last few quarters.
Thyrocare reported PBIDT (Ex OI) of Rs 89.29 crore, registering a YoY growth of 44.25% over last year. The corresponding margin expanded significantly to 50.67% during the quarter from 40.39% last year. This was on account of a reduction in the cost of consumables for Covid RTPCR tests, volume benefits in aggregating these samples at source and significant savings in the logistics cost apart from other administration costs in servicing this business segment. The current operating margin however is not sustainable in the long run and largely depends on the Covid RTPCR related government business and the volume benefits in sourcing these samples. As a result of strong operating performance, PAT increased 80.79% YoY to Rs 77.92 crore.
Although the Indian diagnostic market is small yet compared to those in developed countries, it is amongst the fastest-growing segments in the healthcare market. The domestic industry is estimated at USD 9.5 billion and is expected to grow at a compounded annual growth rate (CAGR) of 11% over the next five years, largely driven by an increase in healthcare spending by an ageing population, rising income levels, rising awareness for preventive testing, advanced healthcare diagnostic tests offerings, and central government’s healthcare measures.
At 1:17 pm on Monday, the stock of Thyrocare Technologies Limited was seen trading at Rs 1193.60, up by 5.81% or Rs 65.55 per share on BSE. The 52-week high of the scrip is recorded at Rs 1,465.90 and the 52-week low at Rs 830.05on the BSE.
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