Dr Lal PathLabs Q2 Results: Profit Increases 18%, Beats Estimates

Dr Lal PathLabs Ltd.’s second-quarter profit rose, beating estimates heavily.

The diagnostic and healthcare testing services provider’s net profit increased 18% year-on-year to Rs 130.80 crore in the three months ended September, according to its exchange filing. That compares with the Rs 670 crore consensus estimate of analysts tracked by Bloomberg.

Q2 FY25 Highlights (YoY)

• Revenue rose 9.8% to Rs 660.20 crore. (Bloomberg estimate: Rs 670 crore).

• Ebitda was up 14% to Rs 202.50 crore. (Bloomberg estimate: Rs 195 crore).

• Ebitda Margin at 30.7% vs 29.6%. (Bloomberg estimate: 29%).

• Net Profit up 18% at Rs 130.80 crore (Bloomberg Estimate: Rs 125 crore)

Operating Highlights

• The company posted the highest ever revenue of Rs. 660 crore in Q2 FY25 with 9.8% growth Y-o-Y

• Revenue for H1FY25 was at Rs. 1,262 crore, registering a growth of 10.5% year on year.

• Q2FY25 had a sample growth of 8.6% and patient volume growth of 3.9% year on year.

• H1FY25 had a sample growth of 9.1% and patient volume growth of 4.8% year on year.

• Revenue per patient stood at Rs. 844, higher by 5.7% year on year.

Update on Suburban Diagnostics

• Significant improvement in revenue growth of ~11.6%

• EBITDA margin is trending up, 20% for Q2FY 25.

• Robust profitability was a result of operational leverage realised through expanded tests per patient and strategic initiatives to optimise costs by leveraging technological advancements.

• On track to open 15-20 new labs this year, as indicated earlier.

• Continue to add more collection centres; on track to add ~800 collection centres collectively across both brands.

• The company's SwasthFit portfolio continues to deliver robust growth, with Q2FY25 contribution at 24%.

“We are pursuing initiatives that will drive growth in the long term, across both core and upcoming geographies. Our early expansion into Tier 3 and Tier 4 towns is a step in this direction and remains supported by the creation of new testing infrastructure and improved patient access," said Dr. Om Manchanda, Managing Director of Dr Lal PathLabs.

"Swasthfit remains a significant contributor to our volumes and revenue, and we continue to expand this offering. There is a clear focus to strengthen digital infrastructure too, where we are focusing on automation and cybersecurity so as to enhance both, data protection and service quality," he added

Shares of Dr Lal PathLabs closed 1.64% lower, compared with a 0.17% decline in the benchmark Sensex.