Dr. Lal Pathlabs Q3 Results Review - Weak Volume Outlook: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Dr. Lal Pathlabs Ltd. reported a weak revenue quarter as growth declined 1.5% YoY and on a like to like basis excluding Suburban (since it was consolidated for only 45 days in Q3 FY22), reckon decline is more like ~5% YoY. Patient volume declined ~5% YoY and again due lack of full Suburban benefit in base quarter, core Dr. Lal Pathlabs volume would have had a larger fall YoY. Margin came in at 23% on better cost control as also transaction related costs in the base quarter the company management conveyed what has been largely evident about volume compound annual growth rate being 2-3% lower than pre Covid baseline. More importantly, there has been a lack of volume revival in recent quarters with an increasing likelihood that FY24 too would be a work in progress year for initiatives to bear fruit. We lower volume growth to mid-single digit next fiscal from our earlier forecast of 10-11% which basically postpones recovery by a year. Accordingly, we lower estimate for FY24 by 20% while FY23 is largely unchanged. .Click on the attachment to read the full report:.Dr Lal PathLabs Q3 Results: Profit Fell, Misses Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dr. Lal Pathlabs Q3 Results Review - Weak Volume Outlook: Yes Securities

Dr. Lal reported 1.5% YoY decline in revenues versus expectation of +7% YoY.

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