Metropolis Healthcare Q2 Updates: Revenue Rises 23% Due To Momentum In Preventive Health Check-Ups

Metropolis Healthcare Ltd. reported a 23% jump in consolidated revenue on a year-on-year basis on the back of robust momentum in preventive health check-ups like TruHealth and wellness offerings. The company, in its business update on Monday, also added that the margins for the second quarter have seen a positive year-on-year trend.

The Mumbai-based company's business-to-consumer revenue grew at 16% year-on-year, according to an exchange filing. The business-to-business segment saw a growth of 34% on account of higher contribution of business-to-business in core diagnostics. The TruHealth Wellness and Specialty segment saw 25% and 36% growth, respectively in the second quarter of this fiscal.

After the acquisition, core diagnostics has progressed from a breakeven position in the fourth quarter of the previous fiscal to low-single digit positive margin in the last quarter to now high single-digit in the September quarter.

The company's margins showed a positive year-on-year trend 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 55 crore as of Sept. 30.

During the quarter, Metrolpolis Healthcare has acquired Dr. RS Patil's Ambika Pathology Laboratory, Kolhapur. This acquisition will help the company serve four to five more districts in Maharashtra and improve productivity while reducing the turnaround time.

The business update was shared after market hours. The stock settled 3.84% higher at Rs 2,073 apiece on the NSE, compared to a 0.74% advance in the benchmark Nifty 50. The shares earlier during the day rose as much as 7.65% to Rs 2,149 per share.

Metropolis Healthcare's shares have fallen 7.13% in the last 12 months and 0.18% year-to-date.

Out of 24 analysts tracking the company, 17 maintains a 'buy' rating, two recommend a 'hold' and five suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 2,154.30 implies an upside of 3.8%.