Dr Lal PathLabs Q2 consolidated profit declines 25% to ₹72.4 cr


Dr Lal PathLabs on Tuesday said its consolidated profit after tax declined 24.8 per cent to 72.4 crore in the second quarter ended September. The company had posted a profit after tax (PAT) of 96.3 crore in the year-ago period, it said in a BSE filing.

Analysts on average had expected a profit of 769.8 million rupees, according to Refinitiv data.

Its revenue from operations rose by 7.1 per cent to 533.8 crore during the period under review, from 498.4 crore in the corresponding quarter of the previous year.

Dr Lal PathLabs said its non-Covid revenue increased 14.8 per cent in Q2 FY23 to 514 crore, from 448 crore in the year-ago period.

Total expenses rose 15.1% to 44 crore, while quarterly revenue from operations rose 7.1% to 53.4 cr.

“We believe margins reported during FY21 (peak of COVID-19) will not be repeated anytime soon and the industry will revert to its long-term revenue growth in the range of 10% to 12%,” analysts at Antique Stock Broking wrote in a report in September.

The share of revenue from COVID and allied business slumped to just 3.7% from 10.1% last year. Revenue from the non-COVID business climbed 14.7% to 5.14 billion rupees, the company said in an investor presentation.

“Instead of increasing the test prices, we are focusing on driving volumes to achieve scale benefits, thereby maintaining our margins,” said Om Manchanda, managing director of Dr. Lal PathLabs.

Earnings margin before interest, taxes, depreciation and amortization fell to 26.9% from 28.4%.

The firm would continue to invest in expanding to smaller towns and cities across the country, Executive Chairman Arvind Lal said.

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