Krsnaa Diagnostics –
Q1 FY 25 concall and results summary –
Revenues – 170 vs 139 cr, up 22 pc
EBITDA – 44 vs 32 cr, up 39 pc ( margins @ 26 vs 24 pc )
PAT – 18 vs 15 cr, up 20 pc ( due jump in depreciation charges )
Total Radiology centers @ 168 ( MRI + CT scans + X Rays )
Total Pathology labs @ 120 with 2270 collection centers
Revenues, EBITDA from Mature centers @ 90 and 35 cr respectively. Margins @ 38 pc. Most of the mature centers are Radiology focussed
Revenues, EBITDA from newer centers @ 79 and 9 cr respectively. Margins @ 12 pc. Clearly, there is a huge scope of improvement here. Newer centers are the ones lesser than 3-5 yrs old. Most of the newer centers are pathology focussed. Their margins won’t go to as high as radiology levels but are likely to be slightly below 38 pc levels ones these centers mature
52 more radiology centers are expected to come up in near future. 41 of those shall come up in Maharashtra
Over 700 collection centers + labs each shall come up in Assam and Odhisha
Cash on Books @ 240 cr
Gross Debt on books @ 170 cr
Company is net debt free
The new contracts received in Maharashtra, Odisha, Assam are for 15, 12 and 5 yrs respectively ( gives a fair long term visibility for the company ). The MP contract is also for 12 yrs
Company is bidding for AP tenders. Hoping for some good news on that front
The company has started venturing into B2C business. Pricing here will be different vs the B2G business. However, they aim to still operate in the affordable space
Current radiology : pathology revenue breakup @ 55 : 45
Have received payments to the tune of 40-50 cr from HP ( which was earlier stuck ). Have started seeing receivables coming down wef July ( ie post election results )
Capex lined up for FY 25 @ 170 cr (mostly towards setting up radiology centers in Maharashtra and MP). Have spent about 20 cr in Q1
Should grow topline by 25 pc in FY 25. Aspiration is to grow by 30 pc !!!
This growth guidance doesn’t take into account a favourable outcome from Rajasthan ( where the company’s tender win is facing some legal troubles and the matter is sub-judice )
Disc: holding, biased, not SEBI registered, not a buy / sell recommendation
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