On Friday, the shares of the top diagnostics company surged by 7.5 percent, reaching a 52-week high price of ₹1,935 per share. This significant increase followed the company’s complete repayment of its debt, leading to a debt-free status as of March 31, 2024.
At 11:25 a.m., Metropolis Healthcare Ltd. shares were trading at ₹1,884 a share, up 4.69 percent from the previous close price on the Exchange, and the company has a market capitalization of ₹9,604 crores.
According to the company’s report, in the fourth quarter of FY24, the core business revenue experienced a growth of around 15% compared to the previous year. This growth was fueled by an approximately 8% increase in volume and a 7% increase in Revenue Per Patient (RPP) year-over-year.
The growth in RPP was primarily attributed to the expansion of the specialty tests segment, premium wellness segment, and adjustments in prices. Additionally, the company’s B2C revenues saw a year-on-year increase of approximately 18% in Q4 FY24. Furthermore, during this quarter, the company successfully repaid its debts, achieving a debt-free status as of March 31, 2024.
Metropolis Healthcare shares have gained 25 percent in the last six months and 45 percent in the last 12 months.
The Company experienced a 2 percent annual increase in revenue, rising from ₹285 crores in Q3 FY23 to ₹291 crores in Q3 FY24. Concurrently, net profit declined by 25 percent during the same period, climbing from ₹36 crores to ₹27 crores.
Metropolis Healthcare Limited is a well-known Indian diagnostics company. The company has a diagnostic center network across India, South Asia, Africa, and the Middle East.
Metropolis Healthcare Ltd stands as the second largest diagnostic company in India, dominating the market in Western and Southern India.
Revenue analysis for H1FY24 reveals that the core business constitutes 98% of total revenue, while Public-Private Partnership (PPP) contracts and COVID-related services contribute 0.5% and 1.5%, respectively.
Geographically, revenue distribution indicates 8% from North India, 5% from East India, a significant 51% from West India, 30% from South India, and 6% from international operations.
Over the past three years, the company’s B2B segment has been the primary revenue driver, resulting in an extended receivables cycle. Despite efforts by management to diversify revenue streams and reduce reliance on the B2B segment, it still constitutes approximately 51% of total revenue.
Company has opened 141 centers and 7 labs in Q2FY24 in line with it 90:30 program. In H1FY24, company increased from 307 towns to 488 towns.
Written by Omkar Chitnis
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