Metropolis Healthcare Q3 results: PAT down 24% due to Chennai floods

Metropolis Healthcare posted a 24.09 per cent year-on-year (Y-o-Y) decline in Profit After Tax (PAT) during the third quarter of the financial year 2023-24, concluded on December 31, reaching Rs 27.15 crores. The company posted a 2 per cent increase in its consolidated revenue from operations, which came in at Rs 291 crore, in contrast to Rs 285 crores in the corresponding period last year. This decline in PAT can be attributed to heavy rainfall and floods in Chennai.

On a sequential basis, the company exhibited a 5.63 per cent decline in revenue along with PAT, which declined by 23.41 per cent.

In Q3FY24, the core business revenues for Metropolis grew 12 per cent Y-o-Y. However, the revenue growth for the same period was affected, facing a 1 per cent impact due to unprecedented floods in Chennai in December 2023. Revenues in the Hi-tech sector exhibited a mid-teen year-on-year growth with margins surpassing the company average. The overall revenue growth for Q3 was also influenced by the loss of a Public-Private Partnership (PPP) contract in Q4FY23 and a dip in revenues from Covid and Allied Testing.

Surendran Chemmenkotil, Chief Executive Officer of Metropolis Healthcare, stated, “The performance in Q3 was marginally impacted on account of heavy rainfall and floods in Chennai and adjacent areas in December 2023, leading to a loss of revenues for approximately 7-8 days from the Chennai region, which is one of the focus cities for Metropolis.”

“In Q3FY24, the core business revenues grew by 12% Y-o-Y, reflecting a consistent trend of double-digit growth over the past seven quarters for our core revenues. Notably, 9% of this growth is attributed to patient volume growth, while 3% is on account of a better product mix,” Chemmenkotil further added.

Ameera Shah, Promoter and Managing Director of Metropolis Healthcare, stated, “Our strategic actions are yielding results and visible in our performance with B2C contribution of 53% and Specialized Tests contributing 38% of our core business revenues. Looking ahead, our focus on the Metropolis 3.0 Strategy persists: expanding our network, strengthening doctor connections, fostering specialised and wellness segments, and upgrading IT infrastructure for an enhanced consumer experience.”

Metropolis Healthcare has its presence in 20 states and 220 cities. Internationally, the company has a presence in South Asia, Africa, and the Middle East. Metropolis offers a range of more than 4,000 tests and profiles, including advanced tests in the diagnosis of cancer, neurological disorders, infectious diseases, and an array of genetic abnormalities.

Metropolis Healthcare’s share price declined by 1.03 per cent, ending the day’s trade at Rs 1,614 apiece on the Bombay Stock Exchange (BSE).

First Published: Feb 02 2024 | 9:18 PM IST