India's Dr. Lal PathLabs reports decline in Q4 profit

Dr. Lal PathLabs

11/05/2023 10:35

BENGALURU, May 11 (Reuters) - India's Dr. Lal PathLabs
Ltd  DLPA.NS  on Thursday reported a sixth consecutive fall in
quarterly profit as a continued slide in income from
COVID-related testing outpaced growth in its core business.
    The medical diagnostics firm, India's largest by revenue,
posted a consolidated net profit of 567 million rupees ($6.93
million) in the three months to March 31, down from 613 million
rupees a year earlier.
    Earnings margin before interest, taxes, depreciation, and
amortisation contracted to 23.6% from 24.9% a year ago.
    Dr. Lal PathLabs is the first among its peers to report
results and will set the tone for an intensely competitive
industry that made a windfall during the pandemic but has since
sharply slipped.
    Shares of the company and its listed rivals Metropolis
Healthcare  METP.NS , Thyrocare Technologies  THYO.NS  and
Vijaya Diagnostic Centre  VIJA.NS  have fallen between 45% and
68% from their all-time highs in 2021, as of their last close.
    Analysts have since set their sights on companies' ability
to widen their range of tests and geographic reach, noting that
Dr. Lal PathLabs is best placed among its competitors to grow in
the long term.
    Over the period of more than a year, the company, which has
a strong presence in northern and eastern India besides its New
Delhi base, has sought to expand to smaller cities and other
regions in the country through acquisitions.
    Revenue grew a mere 1.1% to 4.91 billion rupees, with the
non-COVID segment contributing to nearly 98% of the total.
    Revenue from the COVID and allied segments was down to just
110 million rupees, from 660 million rupees a year before.
    Shares of Dr. Lal PathLabs fell as much as 3.2% to 1,888.10
rupees after reporting results.


($1 = 81.7800 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia
Cheema)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))