Metropolis Healthcare Q2 Updates: Revenue Rises 13% Due To Growth In Test Volumes

Metropolis Healthcare Ltd. reported a 13% jump in revenue on a year-on-year basis on the back of increased volumes in patients and tests, product mix changes, and realisation benefits. The company, in its business update on Friday, also added that the margins for the second quarter have expanded on a sequential basis.

The Mumbai-based company's business-to-consumer revenue grew at 20% year-on-year due to continued momentum from its TruHealth packages, according to an exchange filing. The growth in consumer revenue was also due to upselling of bundled packages, which in turn pushed per test patient higher and increased the contribution to revenue growth.

The company's margins expanded in the quarter that ended on Sept. 30. The continued uptick in margins is on account of operating leverage, cost optimisation, and the growing contribution from the expanding network of Metropolis Healthcare.

Metropolis Healthcare is debt-free with a case reserve in excess of Rs 180 crore as of Sept. 30.

The company in the quarter added six labs and 120 centres, increasing its presence in a total of 700 towns in comparison to 650 towns in the previous fiscal.

In the first-quarter ended June 2024, Metropolis Healthcare's profit rose 31% to Rs 38 crore, beating analysts' estimates. Revenue for the quarter ended June 30 rose 13% to Rs 313 crore. Ebitda was up 25% at Rs 79 crore with Ebitda margin at 25.2%.

Shares of Metropolis Healthcare rose as much as 2.48% during the day to Rs 2,299 apiece on the NSE. However, it pared the gains to close 0.38% lower at Rs 2,234.85, compared to a 0.79% decline in the benchmark Nifty 50.

The stock has risen by 55.25% in the last 12 months and by 33.46% year-to-date.

Out of 22 analysts tracking the company, 11 maintain a 'buy' rating, three recommend a 'hold,' and eight suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 7.2%.