Metropolis Healthcare To Achieve 15% Revenue Growth For FY25 Led By Stronger Q4 Trends: CEO

Metropolis Healthcare is confident of meeting its FY25 revenue targets, driven by better business trends for the fourth quarter of FY25, the company’s Chief Executive Officer Surendran Chemmenkotil has said.

Metropolis Healthcare reported a revenue of Rs 323 crore in the quarter ended December 2024, up by 10.9% year-on-year from Rs 291 crore in last fiscal’s Q3. On a nine-month basis, revenue was pegged 12.5% higher at Rs 986 crore from Rs 877 crore a year ago.

In an interview with NDTV Profit, Chemmenkotil highlighted that the stronger revenue trend in Q4 will help the company achieve its guidance of 13-15% topline growth.

“On a YTD basis, if you look at the three-quarter performance, we are down at 12.5%. And we should see a similar trend or better trend in Quarter 4 as well. So we should come closer to the guidance that we have given by the time we close this year,” he said.

Talking about the acquisition of Core Diagnostics that the company had earlier announced, its CEO mentioned there would be some margin erosion due to it. This is because Core Diagnostics operates at a lower margin than Metropolis Healthcare.

“Yes (margins will dilute). But the Core Diagnostic acquisition is in the final stages; maybe about four to six weeks from now, we should start the integration process once the acquisition is completed. In year one, definitely, there will be a bit of margin erosion because Core operates at a relatively much lower margin than what we do,” Chemmenkotil said.

He revealed that the company expects that the core diagnostic business will achieve Metropolis Healthcare-level margins in three years.

“What our expectation is is that in three years time the core diagnostic business will get into Metapolis levels of margin. So definitely in the first two years, there will be slight margin dilution on the overall group level,” the top executive said.

Overall revenues of the company will also see stronger numbers by the third year of operations of Core Diagnostic, Chemmenkotil explained.

“But I think that in the third year, we should get back to overall revenues getting much better with the Core acquisition and also the margins coming back to the company levels,” he said.

Shares of Metropolis Healthcare Ltd. surged over 5.5% to register an intraday high of Rs 1,833.90 apiece on the NSE on Wednesday. The stock ended the session 3.92% higher at Rs 1,806 in comparison to the benchmark Nifty 50's decline of 0.08% to 23,517.10 points.