Metropolis Healthcare promoter and managing director Ameera Shah on Thursday said the company is witnessing some sort of normalcy return to non-COVID business and therefore believes that the second half of the current fiscal would be good for that segment.
She said the firm will continue network expansions and plans to start another 15 to 20 labs in H2, along with another 250 to 300 data centres to make sure the overall year’s margins are the same as last year.
Shah’s remarks came after Metropolis Healthcare missed estimates for margins and profits in the second quarter. The company’s year-on-year (YoY) EBITDA was slightly down at Rs90.2 crore versus Rs 90.8 crore and EBITDA margin was down at 29.8 percent versus 31.5 percent. The profit went down 3 percent to Rs 58.39 crore compared to Rs 60.5 crore year-on-year (YoY). The YoY revenue was up 5 percent but the non-COVID revenue was down 2 percent quarter on quarter.
According to her, looking at business on a quarter by quarter basis would not be the right way because in the first quarter, India was in the midst of COVID crisis and so revenues were inflated but non-COVID revenues fell.
“So, the important comparison to do would be non-COVID revenues and how those are scaling up. From that perspective, we are 38 percent up year on year and margins too beat estimates and were incrementally higher than what most analysts were expecting, “she said, adding that it was internal efficiency and utilisation that helped the company.
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Talking about the split between COVID and non-COVID revenues, she said COVID has been about 14 percent of revenues, while the year before, in FY21, COVID made for 34 percent of revenues.
“The COVID crisis hit each geography in India in a different quarter. So, if you talk to somebody in Calcutta, you talk to somebody in Bombay, the COVID reality for some people was in December and for some people in April and therefore that also impacted the economics of all of us who were doing testing and depending on where each of us is strong,” she said.
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