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Results - Analysis

NP surged 83.2%

Dr Lal Pathlabs

25-Apr-2025, 05:39
On consolidated basis

Quarter ended March 2025 compared with Quarter ended March 2024.

Net sales (including other operating income) of Dr Lal Pathlabs has increased 10.49% to Rs 602.6 crore.''Operating profit margin has jumped from 26.53% to 28.05%, leading to 16.79% rise in operating profit to Rs 169.00 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 19.97% to 19.55%. ''Employee cost decreased from 19.33% to 19.15%. ''Other expenses fell from 34.18% to 33.26%. ''Selling and administration expenses fell from 13.86% to 12.88%. ''

Other income rose 40.22% to Rs 25.8 crore.''PBIDT rose 19.44% to Rs 194.8 crore.''Provision for interest fell 24.24% to Rs 5 crore.''Loan funds declined from Rs 246.90 crore as of 31 March 2024 to Rs 157.40 crore as of 31 March 2025.''Inventories declined from Rs 37.30 crore as of 31 March 2024 to Rs 36.10 crore as of 31 March 2025.''Sundry debtors were higher at Rs 88.10 crore as of 31 March 2025 compared to Rs 77.40 crore as of 31 March 2024.''Cash and bank balance rose to Rs 838.70 crore as of 31 March 2025 from Rs 830.30 crore as of 31 March 2024.''Investments rose to Rs 326.70 crore as of 31 March 2025 from Rs 113.80 crore as of 31 March 2024 .''

PBDT rose 21.28% to Rs 189.8 crore.''Provision for depreciation fell 0.55% to Rs 36.4 crore.''Fixed assets declined from Rs 685.00 crore as of 31 March 2024 to Rs 623.80 crore as of 31 March 2025.''Intangible assets declined from Rs 548.20 crore to Rs 548.10 crore.''

Profit before tax grew 27.94% to Rs 153.40 crore.''Share of profit/loss were nil in both the periods.''Provision for tax was credit of Rs 2.1 crore, compared to debit of Rs 34.1 crore.''Effective tax rate was negative 1.37% compared to 28.44%.

Minority interest decreased 46.15% to Rs 0.70 crore.''Net profit attributable to owners of the company increased 83.20% to Rs 154.80 crore.''

Equity capital increased from Rs 83.50 crore as of 31 March 2024 to Rs 83.60 crore as of 31 March 2025.''Per share face Value remained same at Rs 10.00.''

Promoters' stake was 53.91% as of 31 March 2025 ,compared to 54.60% as of 31 March 2024 .''

Full year results analysis.

Net sales (including other operating income) of Dr Lal Pathlabs has increased 10.55% to Rs 2461.4 crore.''Operating profit margin has jumped from 27.36% to 28.26%, leading to 14.15% rise in operating profit to Rs 695.50 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 20.27% to 19.56%. ''Employee cost increased from 19.06% to 19.60%. ''Other expenses fell from 33.30% to 32.58%. ''Selling and administration expenses fell from 14.06% to 13.88%. ''

Other income rose 34.97% to Rs 93.4 crore.''PBIDT rose 16.27% to Rs 788.9 crore.''Provision for interest fell 24.15% to Rs 22.3 crore.''Loan funds declined from Rs 246.90 crore as of 31 March 2024 to Rs 157.40 crore as of 31 March 2025.''Inventories declined from Rs 37.30 crore as of 31 March 2024 to Rs 36.10 crore as of 31 March 2025.''Sundry debtors were higher at Rs 88.10 crore as of 31 March 2025 compared to Rs 77.40 crore as of 31 March 2024.''Cash and bank balance rose to Rs 838.70 crore as of 31 March 2025 from Rs 830.30 crore as of 31 March 2024.''Investments rose to Rs 326.70 crore as of 31 March 2025 from Rs 113.80 crore as of 31 March 2024 .''

PBDT rose 18.10% to Rs 766.6 crore.''Provision for depreciation fell 1.18% to Rs 141.9 crore.''Fixed assets declined from Rs 685.00 crore as of 31 March 2024 to Rs 623.80 crore as of 31 March 2025.''Intangible assets declined from Rs 548.20 crore to Rs 548.10 crore.''

Profit before tax grew 23.58% to Rs 624.70 crore.''Share of profit/loss were nil in both the periods.''Provision for tax was expense of Rs 132.5 crore, compared to Rs 143.2 crore.''Effective tax rate was 21.21% compared to 28.33%.

Minority interest increased 10.87% to Rs 5.10 crore.''Net profit attributable to owners of the company increased 36.18% to Rs 487.10 crore.''

Equity capital increased from Rs 83.50 crore as of 31 March 2024 to Rs 83.60 crore as of 31 March 2025.''Per share face Value remained same at Rs 10.00.''

Promoters' stake was 53.91% as of 31 March 2025 ,compared to 54.60% as of 31 March 2024 .''

Cash flow from operating activities increased to Rs 568.80 crore for year ended March 2025 from Rs 535.40 crore for year ended March 2024.''Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 53.90 crore, compared to Rs 57.50 crore during the year ended March 2024.''

Other Highlights
The board recommended a final dividend of Rs 6 per equity share on a face value of Rs 10 each for the financial year ended March 31, 2025. The record date for the purpose of payment of final dividend shall be June 06, 2025.
In FY25, Delhi & NCR contributed 31% to revenue, UP & UK 19%, Rest of North 13%, East India 15%, West India 14%, South India 6%, and others 2%.

Management Comments :
Commenting on the performance, (Hony) Brig. Dr. Arvind Lal, Executive Chairman said: 'As we reflect on the advancements in India's healthcare sector this year, it is clear that both public and private stakeholders have intensified their efforts to reinforce our health infrastructure. Our nation's demographic profile presents a dual imperative. A large cohort remains in its most productive phase, offering a demographic advantage that can drive sustained economic growth. At the same time, the increase in our elderly population demands a system adept at chronic and geriatric management. Navigating these parallel needs underscores the importance of diagnostics as the lynchpin of both preventive and ongoing care, yet much of the sector remains fragmented and unevenly served. At Dr. Lal PathLabs, we are committed to closing this divide by harnessing cutting-edge laboratory technology, expanding our network, and strengthening our digital platforms. We have introduced new test modalities, commissioned additional laboratories to broaden our reach, and integrated advanced information systems and AI-driven workflows to improve accuracy and turnaround times.'

Mr. Ved Prakash Goel, Group CFO & CEO'International Business, said: 'We delivered a healthy financial performance in Q4 and FY25, driven by volume growth, and supported by favourable test and geographic mix, without taking any price hikes. We achieved meaningful improvement in profitability, reflecting our focus on operational efficiency and disciplined cost management. Consistency in execution has given us a robust net cash position. This gives us the comfort to drive future capital investments as per our chosen strategy. We strategically expanded our reach this year, adding 18 new labs, targeting the underserved Tier 3 and 4 markets while reinforcing our presence in metro and Tier 1 regions. Marking the final leg of Suburban integration, we successfully implemented Microsoft Dynamics 365 and Starlims across the network, paving the way for scalable growth in the future. As we move forward, we remain committed to driving planned scale up of operations supported by deeper market penetration, expansion of testing capabilities, and an enhanced patient experience.'

Mr. Shankha Banerjee, Chief Executive Officer-Designate said: 'Our strategy is centred on expanding our footprint and deepening our impact across India`s healthcare ecosystem. We are steadfast in our commitment to democratizing access to quality diagnostics, with a dual focus: strengthening our presence in core Tier 1/ metro markets while strategically penetrating the significant potential of Tier 3 and 4 regions. Simultaneously, we are strategically evolving our test portfolio to meet the dynamic needs of healthcare. This includes a focused expansion into specialized verticals like genomics and advanced diagnostics, exemplified by our recent launch of the advanced Amyloid Typing test ' a first in South Asia. Furthermore, our `SwasthFit` bundled test program is being refined for greater condition-specificity, and we are extending this value-driven approach to the illness segment. Underpinning all our efforts is a commitment to digital transformation, leveraging technology to enhance patient experience, optimize operations, and build a scalable foundation for future growth. We are confident that this strategic roadmap will drive sustainable value creation and further our mission of accessible, high-quality diagnostics for all.'

Dr Lal Pathlabs : Consolidated Results

'	Quarter ended			Year ended
Particulars	202503	202403	Var.(%)	202503	202403	Var.(%)
Net Sales (including other operating income)	602.60	545.40	10.49	2,461.40	2,226.60	10.55
OPM (%)	28.05	26.53	151 bps	28.26	27.36	89 bps
OP	169.00	144.70	16.79	695.50	609.30	14.15
Other Inc.	25.80	18.40	40.22	93.40	69.20	34.97
PBIDT	194.80	163.10	19.44	788.90	678.50	16.27
Interest	5.00	6.60	-24.24	22.30	29.40	-24.15
PBDT	189.80	156.50	21.28	766.60	649.10	18.10
Depreciation	36.4	36.6	-0.55	141.9	143.6	-1.18
PBT	153.40	119.90	27.94	624.7	505.5	23.58
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	153.4	119.9	27.94	624.7	505.5	23.58
EO Income	0	0	-	0	0	-
PBT after EO	153.4	119.9	27.94	624.7	505.5	23.58
Taxation	-2.1	34.1	LP	132.5	143.2	-7.47
PAT	155.5	85.8	81.24	492.2	362.3	35.85
Minority Interest (MI)	0.7	1.3	-46.15	5.1	4.6	10.87
Net profit	154.8	84.5	83.20	487.1	357.7	36.18
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	154.8	84.5	83.20	487.1	357.7	36.18
EPS (Rs)*	18.27	10.11	80.72	58.27	42.79	36.18

* EPS is on current equity of Rs 83.59 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database