Thyrocare : Debt free Asset Light Healthcare Play


(Gary) #188

Thank you @RedEPS , this is quite helpful coming from a practitioner. Few questions , if I may -

  • I reckon the process works only for blood samples and not any other body fluid. Right?
  • What is your mother’s view about sample integrity during the transit - handling, cold storage . Is there any degradation in quality ?
  • I would push to ask why there is no viable alternative within Goa . Are we saying that there are some tests that are not possible in Goa … or is it that the logistics /working model works more efficient with Thyro.

Best,
Gary

PS: Invested in Lal … watching Thyro


(phreak) #189

The actual IndAS adjustments are here in the investor presentation.

The key discrepancy I found was in the expenses. I can’t claim to understand the clarification provided but maybe the online promotional discounts provided were considered expenses earlier but are not considered so anymore? I remember Flipkart used to do something of that sort where they considered discounts as expenses and were paying less taxes in the process but the taxman sent notices asking them reclassify those promotional discounts as capex as it helps build their brand for the long-term. I suspect this is the key item in the discrepancy.


(Bheeshma Sanghani) #190

(phreak) #191

Concall transcript - https://www.bseindia.com/xml-data/corpfiling/AttachLive/dcbe9759-c3a9-403b-a2e4-5eff539bb7c1.pdf

Looks like the ad spend was on almost every question during the concall. This is something I suspected - That the revenues would trail for 6 months or so after the ad spend.

Looks like they have decided to spend 5% of topline in marketing going forward.

No ad spend in FY18!

I am getting the uneasy feeling with the ad spend business. I think so far Velumani’s fixation on EBITDA margins has helped Thyrocare greatly. But past a point, you cannot grow and remain the biggest player without spending on branding even if it doesn’t reflect on numbers immediately. Let’s see if the 5% ad spends this year help with the 20% topline growth.


(atul1082) #192

Is it only add spend or the commission passed on to the doctors also a part of it?Because the later part in any case has to continue as per the prevalent practice in india


(Ajay) #193

Dr.Velumani in the Q4 FY18 concall mentioned that Thyrocare is again going to invest in radiology business (Nueclear). I was surprised because in the earlier concalls they had mentioned about going slow on this business.

Similarly, 2 other announcements which were concerning:

  1. Committed to spending 5% of topline on ads (after saying each quarter that ads dont really drive the core pathology business growth)
  2. Price reduction in Arogyam wellness packages by 5% due to competition (if Thyrocare is the lowest priced player in the market as they keep claiming, dont see the need for this)

Concall transcript link: http://www.thyrocare.com/Assets/documents/Transcript%20of%20Concall%20on%2031-03-2018%20Results.pdf


(rkothuri) #194

I was trying to book a package for my mother and see that there are two different packages available. 1. Aarogyam 2. Wellness. But I don’t see any difference in tests that they are carrying out in these packages. Also, I see there is big price difference in the packages even though most of the tests are one and the same. Somehow I am not feeling comfortable the way their website is being designed.


(stockcollector) #195

(stockcollector) #196

The above video - Dr Velumani talking at Traders carnival!
Some answers to your questions here - make decision and then make it right…


(sachit) #197

Does anyone know why sample processing in Delhi Centre of Thyrocare is declining? I saw this in the latest presentation and was a bit puzzled


(goyal.neelesh) #198

Sachit, The company is facing intensive price competition in the northern region, especially Delhi. Dr. Velumani spoke about in Q4 conference call. The article below might also be useful.

https://www.moneylife.in/article/thyrocare-testing-times-as-pe-backed-competition-intensifies/54159.html