India's Dr Lal Path Labs posts bigger-than-expected Q2 profit on demand for medical tests

Dr. Lal PathLabs

23/10/2024 12:17

Oct 23 (Reuters) - Dr. Lal PathLabs  DLPA.NS , India's
top diagnostics firm by revenue, reported a bigger-than-expected
second-quarter profit on Wednesday, driven by continued demand
and a rising awareness for health and wellness.
    The company's consolidated net profit increased 18%
year-over-year to 1.29 billion rupees ($15.4 million),
increasing for the sixth quarter in a row.
    That beat analysts' estimates of 1.26 billion rupees,
according to estimates compiled by LSEG.
    The company, which operates about 300 labs in India, said
the number of samples it tested climbed 10% and that it is
building back volumes.
    Analysts said awareness regarding health and wellness is
rising in the country and, along with Dr. Lal PathLabs'
expansion into smaller cities, is boosting demand for medical
tests. They also said the company is expected to benefit from
price hikes.
    However, Dr. Lal PathLabs did not specify if it raised
prices of its tests.
    The company's revenue from operations increased 10% to 6.6
billion rupees, beating analysts' estimates of 6 billion rupees.
    Rival Metropolis Healthcare  METP.NS  is yet to report its
September quarter results.
 
 ($1 = 84.0490 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio
D'Souza)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))