But there is difference in MR’s role for medicines and Diagnostics.
In case of medicines, the medicine can be available in any chemist shop, here the important is medicine not the shop.
However, in case of Diagnostic Dr. prescribe the test not the Lab. So the Pan India player, the reliable player will can get patients.
when doctors prescribe brands irrespective of the chemist shop ,doctors get a cut since the MR scouts in the doctor’s vicinity area to gauge how many prescription came from a doctor’s name. Similarly for tests ,the doctors mention get these tests done at this lab and in many cases now doctor’s clinics have also become collection centers, especially for METROPOLIS.
UTI Mutual fund has increased its stake in metropolis from ~7.05 to ~7.2%
Q4 FY23 Results
Non COVID revenue up 15% yoy, Hitech revenue flat.
Ebitda margins expanded to 24.9% from 24.5%, when adjusted for network expansion they are at pre-Covid level of 27%
Company expecting to add 100 new labs by FY25. Mumbai and Pune continue to be focus markets
Have significantly reduced debt taken for Hitech acquisition to ~Rs 70 crore.
Valuation is currently at similar multiples as what Metropolis paid for Hitech acquisition.
Discl: Invested
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Their name emerging in Delhi Mohalla Clinic scam…
Disc: Exited
I think Metropolis is in bit soup. FY23 Annual Report , MD has proudly declared this at page number 21 “On the PPP front, we secured a small new contract in Delhi, which is a growing market for us,
making deeper in-roads in our non-core geographies. We have partnered with Mohalla clinics in Delhi to deliver good quality test reports to those patients who cannot afford it” .
Per vigilance 85616 tests were conducted between July and September 2023 at M/s Metropolis Healthcare Ltd..
Question is has Metropolis uniquely identify patients for whom they have collected sample. Already 3 odd crore provision in Q2 FY24 after employees faking financial entries and whistleblowing came into picture . All is not well with Metropolis. Management should come clean as news is spreading in media for last 3-4 days.
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