Dr Lal PathLabs a well recognised brand in the Diagnostic Sector

Hi everyone, I had attended Dr Lal Q4FY23 earnings call, below are the highlights –

1. Scale & Accuracy is the most important aspect in Diagnostics, going ahead player with accuracy & more reach will grow faster than the peers.

2. FY24 will have a clean base of FY23 that has very neglible covid revenues.

3. Bundled packages have become a way of life with Swastfit contributing to around 22% of the revenues now.

4. Have taken price hike in Q4FY23 on the specialised tests & not on routine and health packages.

5. Will be aggressive in south & west with Suburban being more active.

6. Major focus areas would be Tier 3 & Tier 4 cities.

7. Price increases should increase revenue by 2.5% on a full year basis.

All in all, FY24 should be very much in focus for investors invested in Dr Lal as FY23 is now a clean base & real growth rate can be measured. If the business is not able to scale in FY24 as well, would mean that competition from VC funded players is indeed making it difficult for organized players to grow & maintain profitability.

Disc – Invested & tracking closely.