Dr. Lal Path Labs Ltd. — Q3 FY26

Dr. Lal PathLabs Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=OLjnmDZhi24 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the do Dr. Lal Patlab's Q3 FI26 earnings conference call. 0:10 10 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the call, please signal an operator by pressing star then zero on your touchdown phone. 0:28 28 seconds I now hand the conference over to Mr. 0:30 30 seconds Nishit Sulanki from CDR India. Thank you and over to you sir. 0:36 36 seconds Thank you. Good afternoon everyone and welcome to Dr. Lal Patlap's Q3 FI26 earnings conference call. Today we are 0:43 43 seconds joined by senior members of the management team including ordinary brigadier Dr. Arvin L executive chairman, Mr. Shanka Banerjee CEO and 0:52 52 seconds Mr. Ra Prakash Cro Group CFO and CEO international business I would like to share a standard disclaimer. Some of the 0:59 59 seconds statements made on today's conference call could be forwardlooking in nature and the actual results could vary from these forwardlooking statements. A 1:07 1 minute, 7 seconds detailed statement in this regard is available in the results presentation which has been circulated to you and also available on SCI website. I would 1:15 1 minute, 15 seconds now like to invite Dr. L to share his perspectives. Thank you and over to you sir. 1:21 1 minute, 21 seconds Thank you Nadesh and good afternoon everyone and thank you for joining us for the third quarter and 9 month earning call for fiscal 2026. 1:30 1 minute, 30 seconds Healthcare in India is undergoing a profound transformation. We are witnessing a steady rise in lifestyle related and chronic diseases and aging 1:40 1 minute, 40 seconds population with evolving care needs and a growing awareness among consumers about the importance of early detection 1:47 1 minute, 47 seconds and preventive health. These shifts are redefining diagnostics from being episodic and illness-driven to becoming 1:54 1 minute, 54 seconds an essential continuous part of long-term health management. At the same time, access to highquality diagnostics 2:01 2 minutes, 1 second remains uneven across the country, reinforcing the relevance of organized technology enabled players who can deliver reliable and standardized 2:10 2 minutes, 10 seconds service at scale. This is where our purpose at Dr. Lal Path Labs remains deeply aligned. We are committed to 2:16 2 minutes, 16 seconds building an accessible, dependable and clinically rigorous diagnostics ecosystem for every Indian. This quarter 2:24 2 minutes, 24 seconds we made meaningful progress on several strategic priorities. First one was launch of Slovaka, our personalized 2:31 2 minutes, 31 seconds preventive healthcare platforms. A major milestone in this direction was the launch of Suvaka operating under the philosophy of science behind wellness. 2:41 2 minutes, 41 seconds Soaka represents a strategic pivot from traditional disease detection towards science-led disease prevention. By 2:48 2 minutes, 48 seconds integrating high-end diagnostics and AI supported imaging with curated programs, we are directly addressing the rising 2:55 2 minutes, 55 seconds demand for personalized preventive care in India. Next is expansion of specialized and advanced testing 3:03 3 minutes, 3 seconds capabilities. We continue strengthening our offering in high-end diagnostics including oncology, genomics, advanced 3:10 3 minutes, 10 seconds infectious disease testing and investments in our reference labs and collaborations with global technology partners remain key enablers of this strategy. 3:20 3 minutes, 20 seconds Next is deepening our presence in underpenetrated markets. Our scalable franchiseled model continues to help us 3:28 3 minutes, 28 seconds expand into tier three and tier four markets. Improving diagnostic access in semi-urban and rural India remains a 3:35 3 minutes, 35 seconds core long-term priority. Together, these initiatives reflect our integrated approach that is combining a robust 3:43 3 minutes, 43 seconds physical network, deep clinical capability and digital innovation to serve India's evolving healthcare needs 3:50 3 minutes, 50 seconds while driving disciplined and sustainable growth. With that, I would now like to invite our chief executive 3:57 3 minutes, 57 seconds officer, Mr. Shanko Banerjee to share the key performance highlights for the quarter. Thank you and over to you Shonko. 4:05 4 minutes, 5 seconds Thank you Dr. Lal and good afternoon to you all. I am glad to connect with everyone today to walk through our Q3 4:13 4 minutes, 13 seconds FI26 performance. Our Q3 FI26 results reflect sustained growth and operational excellence. We delivered strong 4:21 4 minutes, 21 seconds financial performance this quarter with revenue rising 10.6% yearonear resulting in 10.8% 8% growth for the 9-month 4:29 4 minutes, 29 seconds period. Patient volume growth was lower than our current trend at 2.7% in Q3 due 4:36 4 minutes, 36 seconds to unexpected decline in our seasonal fever portfolio. The YTD patient volume growth is 4.4%. 4:44 4 minutes, 44 seconds Our YTD sample growth remains robust at 9.6%. 4:49 4 minutes, 49 seconds In Q3, we continued the journey of significant clinical advancement with introduction of more than 15 new tests 4:58 4 minutes, 58 seconds including more than five which are first in India. These additions were across multiple portfolios further 5:06 5 minutes, 6 seconds strengthening our high-end complex testing capabilities. Our technical team had five international journal publications with one award-winning 5:14 5 minutes, 14 seconds paper in the area of using ML for rapid acute leukemia diagnosis. 5:21 5 minutes, 21 seconds We have upgraded our enterprise IT infrastructure to next generation technology which has an AI enabled environment at compute and network 5:29 5 minutes, 29 seconds layer. We have rolled out a new agentic bot for patients at multiple touch points and a clinicianf facing digital 5:36 5 minutes, 36 seconds tool in pilot mode. We have enhanced our patient experience at walk-in labs and home collection with faster reporting 5:45 5 minutes, 45 seconds standards in Delhi NCR. All these initiatives and more in the pipeline are aimed to enhance the patient and 5:53 5 minutes, 53 seconds clinician experience with the brand. Our recent launch of SOAKA preventive wellness program model also re-imagines the patient experience with diagnostics. 6:04 6 minutes, 4 seconds Together these developments solidify our position not just as a laborator laboratory service pro provider but as a 6:12 6 minutes, 12 seconds comprehensive high-tech partner in our patients long-term health journey. 6:18 6 minutes, 18 seconds During the quarter, SWF fit contributed 26% to total revenue and continues to play a primary role in our B2C market 6:26 6 minutes, 26 seconds growth. We are scaling this affordable preventive health model to tier 2 and below towns to capture an untapped 6:34 6 minutes, 34 seconds preventive testing market. The transition from unorganized organized diagnostics in India is sustained as patient priorities shift toward clinical 6:42 6 minutes, 42 seconds reliability. Our competitive edge lies in stringent quality protocols and superior service architecture. Beyond 6:50 6 minutes, 50 seconds the test itself, our differentiation is defined by the end-to-end patient experience from seamless sample collection to digital report delivery. 6:59 6 minutes, 59 seconds Ultimately, these superior service levels are the primary drivers of patient acquisition and brand loyalty. 7:07 7 minutes, 7 seconds We are scaling through expansion in newer markets, innovative offerings and digital enablement. This approach cementss our diagnostic leadership and enables long-term profitable growth. 7:18 7 minutes, 18 seconds With that, I will now hand over the call to our group CFO and CEO International Business W. Over to you. 7:27 7 minutes, 27 seconds Thank you S Shanko. Good evening everyone and a warm welcome. Thank you for joining us today. I will take you 7:34 7 minutes, 34 seconds through the key operational and financial highlights for quarter 3 and 9 months of FY26 followed by our year-to- date uh performance. 7:46 7 minutes, 46 seconds Let me begin with some uh key operating metrics. 7:50 7 minutes, 50 seconds Revenue per patient for Q3 FY26 stood at rupees 927 representing a 7.7 yearon-year increase over rupees 861 in Q3 FY25. 8:03 8 minutes, 3 seconds This improvement was driven primarily by favorable test mix and geographic mix rather than pricing. 8:11 8 minutes, 11 seconds Test per patient increased to 3.11 in Q3 FY26 compared to 2.97 in the corresponding 8:20 8 minutes, 20 seconds quarter last year reflecting our continued focus on menu expansion and preventive healthcare offerings. 8:29 8 minutes, 29 seconds As part of our commitment to strong governance and customer ccentric practices, the company has gladly passed 8:37 8 minutes, 37 seconds on the benefits arising from reduction in GST on reagents and chemicals from 12% to 5% through price reduction for patients. 8:48 8 minutes, 48 seconds While this had a modest impact on realization, we believe it strengthens our long-term trust and demand sustainability. 8:57 8 minutes, 57 seconds Overall, our growth continues to be volumeless with realization improvement coming largely from mix enrichment which 9:06 9 minutes, 6 seconds we believe are structurally sustainable drivers. 9:11 9 minutes, 11 seconds Revenue for Q3 FY26 came in at rupees 660 cr compared to rupees 597 cr in the 9:18 9 minutes, 18 seconds same quarter last year reflecting a yearon-year growth of 10.6%. 9:24 9 minutes, 24 seconds For the 9 months ended December 2025, revenue stood at 260 cr versus rupees 9:31 9 minutes, 31 seconds 1859 cr in YTD FY25 registering a growth of 10.8% 9:38 9 minutes, 38 seconds driven by steady volumes and operating leverage. During Q3 FY26, we incurred a 9:45 9 minutes, 45 seconds one-time cost of rupees 30 cr related to implementation of new labor code which has been reported as an exceptional 9:54 9 minutes, 54 seconds item. This is a this is a nonrecurring adjustment and does not impact the 10:01 10 minutes, 1 second underlying operating performance or steady state cost structure of the business. 10:07 10 minutes, 7 seconds A bida before exceptional item for Q3 FY26 stood at rupees 179 cr compared to 10:13 10 minutes, 13 seconds rupees 154 cr in Q3 FY25 reflecting a growth of 16.3% and a bida margin of 27.2%. 10:25 10 minutes, 25 seconds For the 9 months ended December 2025, Aida before exceptional item came in at rupees 596 cr compared to rupees 527 cr 10:34 10 minutes, 34 seconds in the same period last year resisting a growth of 13.1% with a bida margin of 28.9%. 10:43 10 minutes, 43 seconds Profit before tax for Q3 FY26 after taking the heat of labor code was rupees 10:50 10 minutes, 50 seconds 124 cr compared to rupees 138 cr in Q3 FY25 with a pat margin of 18.8%. 11:00 11 minutes For the 9 months ended December 2025, PBT stood at rupees 509 cr versus 471 cr 11:08 11 minutes, 8 seconds in YTD FY25 with a margin of 24.7%. 11:14 11 minutes, 14 seconds Profit after tax for Q3 FY26 after taking the hit of labor code stood at rupees 91 cr compared to 98 cr last year resulting an margin of 13.9%. 11:28 11 minutes, 28 seconds For the 9 months period, PAD was rupees 378 cr compared to 337 cr in YTD FY25 with a margin of 18.3%. 11:40 11 minutes, 40 seconds Earning per share for Q3 FY26 was 5.4 rupees compared to rupees 5.8 in Q3 11:49 11 minutes, 49 seconds FY25. For the 9 months ended December 2025, EPS stood at rupees 22.4 4 11:56 11 minutes, 56 seconds compared to 20 rupees in the previous year. 12:02 12 minutes, 2 seconds Our balance sheet remains robust with net cash and cash equivalent of rupees 1,411 cr as on December 31st 2025 12:12 12 minutes, 12 seconds providing us significant flexibility to support organic growth calibrated inorganic opportunities and shareholder returns. 12:22 12 minutes, 22 seconds I'm pleased to share that the board of directors has approved an interim dividend of 35% amounting to rupees 3.5 12:31 12 minutes, 31 seconds uh per share on enhanced equity share capital post one is to1 bonus issue 12:38 12 minutes, 38 seconds our capital allocation priorities remain unchanged investing in growth pursuing M&A opportunities and returning surplus 12:46 12 minutes, 46 seconds capital to shareholders while maintaining financial prudence overall we remain focused on delivering sustainable growth and healthy 12:54 12 minutes, 54 seconds profitability while continuing to invest in quality, compliance and customer experience. With this, I conclude my 13:02 13 minutes, 2 seconds opening remarks and I I now request the moderator to open the question forum for question and answer. 13:10 13 minutes, 10 seconds Thank you. 13:11 13 minutes, 11 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchstone telephone. 13:21 13 minutes, 21 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. 13:30 13 minutes, 30 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:38 13 minutes, 38 seconds To ask questions, please press star and one. 13:43 13 minutes, 43 seconds The first question is from Praash Kaparia from Kaparia Financial Services. Please go ahead. 13:50 13 minutes, 50 seconds Yeah, thanks for the opportunity. Uh, a couple of questions from my end uh Shanka. At a time when you know industry 13:58 13 minutes, 58 seconds revenues have been growing in the 7 to 8% uh range, our growth if I look at last 11 12 14:06 14 minutes, 6 seconds quarters has been 10 12% on an average. 14:12 14 minutes, 12 seconds So you know what am I missing? We have brand, we have technology, we have franchisee network, we have uh you know 14:19 14 minutes, 19 seconds reach, we have doctor empanelments, salesforce, low cost of test, on-time delivery. So 14:27 14 minutes, 27 seconds what is the missing factor which is you know leading to this kind of a growth because you know if I look at some of 14:34 14 minutes, 34 seconds the other listed players they've been reporting higher growth. So that's the first question on revenue and secondly 14:43 14 minutes, 43 seconds on swastfit you know it has been growing almost 2x of our company revenue. So you know how is the journey been? Is it now a two tier 2 tier three phenomenon also? 14:55 14 minutes, 55 seconds Is that also contributing there? What's the journey in tier two three cities? Is it you know movement from basic diabetes 15:02 15 minutes, 2 seconds and thyroid to some of these packages and is there any possibility that swastit is cannibalizing some repeat usage or revenues at the company level? 15:13 15 minutes, 13 seconds Those are my two questions. Thanks. 15:16 15 minutes, 16 seconds Right. Thanks. uh Praash. So I think on the first one in terms of uh revenue I think we've been consistent in trying to 15:24 15 minutes, 24 seconds say that uh right now we are focusing only on organic revenue growth. If you 15:31 15 minutes, 31 seconds remember about uh uh you know two years back we had slipped to about a 7% 15:38 15 minutes, 38 seconds organic revenue and uh so we uh were quite clear that we want to build the organic momentum back across the 15:46 15 minutes, 46 seconds organization and that is what the team has been working on. Simultaneously you know the building blocks of uh of how to 15:55 15 minutes, 55 seconds take the next jump forward are being put in place. So, so revenue growth uh you 16:02 16 minutes, 2 seconds know in the future we are obviously working towards making this better than whatever we have now. Uh and uh but the 16:11 16 minutes, 11 seconds stability that you see is is kind of designed to at least bring the organic 16:18 16 minutes, 18 seconds growth trajectory uh at a level that we are comfortable. I think we've been saying 11 to 12% organic growth for this 16:26 16 minutes, 26 seconds year. uh and uh even as of now we are confident that we should be a able to deliver between 11 to 12% for the year 16:35 16 minutes, 35 seconds um and uh and once you know the whole uh base kind of uh comes to that level I 16:43 16 minutes, 43 seconds think other initiatives which are which are uh already being laid out uh should help us uh step up going forward. On the 16:52 16 minutes, 52 seconds second question on swastfit. Uh yes I think in even in some of the previous calls I had mentioned that swastit now 17:00 17 minutes um you know with our expanding reach uh we ourselves are able to now put swit into uh more geographies including the 17:10 17 minutes, 10 seconds smaller towns and we are definitely seeing uptake uh or acceptability of this uh in the smaller towns. uh also 17:19 17 minutes, 19 seconds you know even in the uh urban centers our penetration uh or availability of 17:25 17 minutes, 25 seconds this is is getting uh you know the uh we are seeing not only direct consumer or 17:32 17 minutes, 32 seconds patient pickup but like I mentioned in some cases we are even seeing uh you know doctor uh recommendations coming 17:40 17 minutes, 40 seconds for the portfolio so that those uh those levers are still in play uh and that's 17:47 17 minutes, 47 seconds what is uh helping us uh maintain the uh growth momentum on first. 17:53 17 minutes, 53 seconds Okay. Okay. And you know in some of these initiatives which you know you've been calling out over the last few 18:01 18 minutes, 1 second quarters be distribution be it new product development be you know enhancing the menu I think increasing 18:08 18 minutes, 8 seconds the sales force. So where will that trajectory come in? Is it you know now is FI27 going to get us there because I 18:17 18 minutes, 17 seconds think last call you had hinted suburban has stabilized the IT shoes are done Bombay reference lab has stabilized so 18:26 18 minutes, 26 seconds no will west and south contribute more meaningfully to that then we'll see that delta or incremental revenue coming 18:34 18 minutes, 34 seconds through us what's the tipping point or what as you know analysts and fund managers we should focus on okay this is what it is and we we are there. 18:46 18 minutes, 46 seconds So I think you know for a size of uh organization and the scale that we are running I don't think uh one single city 18:55 18 minutes, 55 seconds geography uh will really help in kind of uh you know taking the overall number uh 19:02 19 minutes, 2 seconds higher. So so so what has to work for us is uh is slightly different strokes in different geographies but all 19:10 19 minutes, 10 seconds geographies uh will uh contribute towards the higher growth momentum. So I would say starting 19:16 19 minutes, 16 seconds Delhi NCR north east west uh even south I think all of the geography international as well all of the 19:24 19 minutes, 24 seconds geographies put together uh will will uh contribute to the higher growth trajectory that we are aiming for. It is 19:32 19 minutes, 32 seconds unlikely that you know one geography will uh help you know the overall uh number of the organization to go to the 19:41 19 minutes, 41 seconds level that uh we wanted to move towards. 19:47 19 minutes, 47 seconds Okay. Okay. Understood. And from next year we should see some better growth. Is that the path we should expect? 19:55 19 minutes, 55 seconds Yeah. That's that's the trajectory that uh all of us expect including me. Sure. 20:02 20 minutes, 2 seconds Sure. That's helpful. Thank you. All the best. Thank you. 20:09 20 minutes, 9 seconds Thank you. Next question is from Vive Agarwal from City Group. Please go ahead. 20:15 20 minutes, 15 seconds Yeah, thanks. Uh thanks for the opportunity. In the opening remarks, you talked about that uh the quarter has been also impacted by or the volumes have been impacted by your adverse 20:23 20 minutes, 23 seconds season. Uh so is it possible for you to break it down uh how the seasonal volumes or the fever related volumes 20:30 20 minutes, 30 seconds have grown in this quarter or how how the spe specialty or semi specialty test related volumes have grown in the quarter. Thank you. 20:38 20 minutes, 38 seconds Yeah. So uh I don't think we'll get into you know that micro detail but you know it has been quarter 3 is usually not a 20:47 20 minutes, 47 seconds uh a thing where we discuss season or fever or things like that but uh it has been an unexpected quarter in the sense 20:55 20 minutes, 55 seconds that we have seen uh an impact due to you know our seasonal fever portfolio 21:02 21 minutes, 2 seconds has got negatively impacted. we have declined on that portfolio. uh and yes it has uh that has resulted in lower 21:10 21 minutes, 10 seconds patient volume numbers and even uh to a certain extent extent the lower sample 21:16 21 minutes, 16 seconds volume numbers and so basically it has declined right and approximately what is the share of 21:24 21 minutes, 24 seconds this portfolio in the overall uh patient volume approximately actually any ballpark number you see the share is different by 21:32 21 minutes, 32 seconds quarter so I'm not too sure and that's not something which we focus upon. So I'm not too sure that's a data we would want even any of you to be focusing upon. 21:43 21 minutes, 43 seconds Yeah, no problem at all. So another question is if you look at the patient volume growth right so although this quarter has been impacted but even if 21:50 21 minutes, 50 seconds you look at uh the uh 9 months it's around four five% kind of growth and this is despite that uh you are pushing significant growth as far as in the tier 21:59 21 minutes, 59 seconds two tier three down expanding the network and all. So is it a uh is it a right way to look at that uh your core 22:07 22 minutes, 7 seconds markets uh of like for example daily NCR or in the tier one markets is there any kind of a structural slowdown as far as 22:15 22 minutes, 15 seconds the growth is concerned or how to put it? Thank you. 22:20 22 minutes, 20 seconds So I think patient patient volume numbers are uh are seeing uh you know a steady growth. I think quarterto- 22:29 22 minutes, 29 seconds quarter fluctuations are there but if you at least see in the last 2 three year movement you know from you know an 22:37 22 minutes, 37 seconds annual low of almost 2.7 or 2.7% that we saw 2 years back uh we are uh 22:46 22 minutes, 46 seconds going upwards I think expecting a uh a a jump which will suddenly you know you 22:54 22 minutes, 54 seconds know at the scale of patient volumes that we do expecting you know this number to suddenly go up by uh 3 4% in 23:02 23 minutes, 2 seconds one calendar year or one financial year may not be the right expectation but yes there is a slow and steady improvement that we are trying to build on on the 23:10 23 minutes, 10 seconds patient uh volume number uh yeah uh uh and and that you will see you know in the in the YTD number this year also we 23:19 23 minutes, 19 seconds have obviously this impact right now in this quarter but uh we are seeing uh some increase in the patient volume numbers uh this financial year as well. 23:31 23 minutes, 31 seconds Yeah, thank you Sangod from my check. Thank you very much. Thank you. 23:39 23 minutes, 39 seconds The next question is from Anul Aarwal from MK. Please go ahead. 23:44 23 minutes, 44 seconds Hi, thank you for the opportunity. Hope I'm audible. Yes. 23:49 23 minutes, 49 seconds Great. Uh so my first question is on margins. I think uh generally we see a dip in margins in the current quarter 23:56 23 minutes, 56 seconds and we had previously indicated that you know H2 margins would also be lower than H1 moving to network investments uh and 24:03 24 minutes, 3 seconds other expansion projects. Uh are the current margins uh I'm talking about 9 month uh ended margins sustainable at 24:11 24 minutes, 11 seconds around 29% going forward. 24:17 24 minutes, 17 seconds So an way this side uh I think uh if you see uh H1 margin was higher this quarter 24:24 24 minutes, 24 seconds if we take out the impact of labor code it is 27.2%. 24:29 24 minutes, 29 seconds And you know later part of the year we said key it will be lower than you know first half of the year. So overall 24:38 24 minutes, 38 seconds earlier we said you know similar number you know around 28% kind of margin 24:46 24 minutes, 46 seconds and uh that is we are confident that we can achieve in this uh financial year between you know 27 28% even after this 24:54 24 minutes, 54 seconds impact of labor cone got it going forward uh the margin trajectory would remain firmly around 25:03 25 minutes, 3 seconds this 28% is what I'm trying to understand uh despite us passing on those GST related benefits etc and all that stuff. 25:11 25 minutes, 11 seconds Yeah, I think we are we are uh we are hopeful that we can maintain the trajectory between 27 28%. 25:20 25 minutes, 20 seconds Got it. Second question I had was uh can you can you provide us an update with uh the advanced radiology pilot project that we had undertaken in Delhi? Is 25:29 25 minutes, 29 seconds there any update that you can share with us with regards to traction or uh any plans to sort of expand on that? 25:36 25 minutes, 36 seconds So the uh so the traction on the advanced radiology is that we were running a one center pilot in Delhi NCR 25:45 25 minutes, 45 seconds and u and we are uh you know looking at it and it is uh it is kind of going as per the planned trajectory that we have. 25:54 25 minutes, 54 seconds So we have now uh starting or just started another center in Delhi NCR on 26:01 26 minutes, 1 second advanced uh radiology because we want to now see how replicable is our first uh 26:08 26 minutes, 8 seconds uh first pilot u you know in another uh location which is geographically apart 26:16 26 minutes, 16 seconds uh uh so so that's the status uh as of now but this would be an advanced center 26:24 26 minutes, 24 seconds only sir right uh it'll include MRI and CT scan machines yeah this is another center with the MRI and CT 26:32 26 minutes, 32 seconds lovely just one last booking being question from an can you help us the capex number for the current quarter and any full year guidance incorporating 26:39 26 minutes, 39 seconds these high investments in radiology and and even suaka preventive wellness program 26:47 26 minutes, 47 seconds uh so anul this year you know we have made two investments which is one we 26:54 26 minutes, 54 seconds bought one uh you know property which is for our precision diagnostic center and of course this worker which we have just 27:03 27 minutes, 3 seconds started. So we are you know roughly will uh we'll be spending about uh 150 to 160 27:11 27 minutes, 11 seconds cr kind of capex in this uh year. Uh normally we we spend about 50 60 70 cr 27:18 27 minutes, 18 seconds on a operating uh kind of capex. uh but these uh radiology center which you know 27:25 27 minutes, 25 seconds let's suppose if we take uh one center it takes away about 15 16 cr kind of 27:31 27 minutes, 31 seconds investment and uh if we you know take let's suppose going forward one or two more then uh accordingly someone can 27:40 27 minutes, 40 seconds factor in these uh uh two more investments right so sustainably the capex could 27:47 27 minutes, 47 seconds settle at around say around 60 70 crores of operational capex plus two center capex on this radiology. So about 100 odds could be right 27:56 27 minutes, 56 seconds plus some yeah plus some new initiative or new investment. So uh near to time maybe you can you know see between 100 28:04 28 minutes, 4 seconds to 150 cr kind of capex uh someone should assume that's it from uh thank you and all the very best. 28:13 28 minutes, 13 seconds Thank you. Thank you. Thank you. 28:17 28 minutes, 17 seconds The next question is from Bino Fati from Iara Capital. Please go ahead. 28:29 28 minutes, 29 seconds Uh Mr. Bo, you may go ahead with the question. 28:36 28 minutes, 36 seconds There seems to be no response from the line of Mr. Binoyer. We'll move to the next question. 28:43 28 minutes, 43 seconds The next question is from Raman Ki from Sequent Investments. Please go ahead. 28:52 28 minutes, 52 seconds Uh hello sir, can you hear me? Yes. Yes. 28:57 28 minutes, 57 seconds So uh I have uh two questions. One is uh sir can I get the total test volume for the hotter? 29:05 29 minutes, 5 seconds Total test volume. 29:07 29 minutes, 7 seconds Yeah. Number of tests conducted not the sample collected. number. 29:13 29 minutes, 13 seconds So we have done 22.2 million samples in this quarter. 29:21 29 minutes, 21 seconds Yeah, you that is the sample collected, right? I just want to understand the number of tests performed on those samples. 29:28 29 minutes, 28 seconds So you uh you know Raman we generally give sample number. So what you are talking about the parameter where let's 29:37 29 minutes, 37 seconds suppose if we do one test which is LFT let's suppose and within that there are 29:44 29 minutes, 44 seconds so many parameters which we don't report directly so these are not reported so we generally give sample numbers 29:53 29 minutes, 53 seconds okay sir answer my second question is with respect to frost fit I just want to understand uh the margin difference 30:00 30 minutes between swast swast fit and the rest of the portfolio. Uh this is where I'm 30:08 30 minutes, 8 seconds coming from. I just want to understand if once your contribution of fast improves further will it aid margins or 30:16 30 minutes, 16 seconds will it be a pressure on margins or uh or the margins will remain flat. 30:24 30 minutes, 24 seconds So uh you know realization is of course higher in uh you know swat fit because of bundle and packages. Um but same time 30:33 30 minutes, 33 seconds we provide discount because these uh these packages are at discounted rate. 30:39 30 minutes, 39 seconds Obviously we we get operating leverage and uh overall I mean net net it is not 30:46 30 minutes, 46 seconds like uh very different uh but yes realization is higher and operating leverage is always coming be it 30:54 30 minutes, 54 seconds consumption be it other operating overheads but uh somebody should not factor in that you know higher 31:01 31 minutes, 1 second contribution from source fit will you know give very high uh margins you know that uh one should not uh you to factory. 31:11 31 minutes, 11 seconds Understood sir. So it is not it is not margin diluted. Okay. Understood sir. 31:19 31 minutes, 19 seconds So my sec uh third question is with respect to uh the newly launched swirl 31:26 31 minutes, 26 seconds car. Can you just soak a sorry uh can you just elaborate what are the tasks we 31:33 31 minutes, 33 seconds uh the company will be performing under this? 31:39 31 minutes, 39 seconds So Saka is a is a very uh new uh conceptual uh setup. It's focused on uh 31:49 31 minutes, 49 seconds preventive uh wellness testing only and uh you know it is um if you want more 31:56 31 minutes, 56 seconds details you can go on to saka.com which is the website dedicated to to Slovaka you can type s o v a ka 32:06 32 minutes, 6 seconds sovaka.com and you will get uh details but it is all preventive health checkup these are 32:13 32 minutes, 13 seconds packages uh which uh which are kind of you know uh there's a pre-conultation 32:20 32 minutes, 20 seconds uh with the doctor and uh depending upon individual conditions family history etc packages are suggested and finalized and 32:29 32 minutes, 29 seconds then the testing happens and and report consultation and diet consultation post that so it's a it's a wellness uh uh and 32:38 32 minutes, 38 seconds preventive focused uh testing only understood sir and sir uh B2C C share 32:46 32 minutes, 46 seconds during the quarter is it still 75 or has it increased? B2C share is still around 75%. 32:55 32 minutes, 55 seconds Okay. Thank you sir. Thank you sir. Thank you. 33:00 33 minutes Next question is from Binati Parample from Ara Capital. Please go ahead. Hi uh good afternoon. Can you hear me? 33:09 33 minutes, 9 seconds Yes. 33:10 33 minutes, 10 seconds Okay. Okay. Great. Sorry about last time. Um so a couple of questions from my side. Um on one side we have seen a 33:18 33 minutes, 18 seconds sharp depreciation in uh INR. Um and at the same time we have seen this uh uh 33:25 33 minutes, 25 seconds European Union trade deal which cuts tariffs. Does either of this uh favorably or unfavorably affect our uh cost base uh and can it back margins? 33:38 33 minutes, 38 seconds Yeah. Uh thanks Beno. Uh so uh yes uh I think dollar is moving up we all know u 33:47 33 minutes, 47 seconds and uh most of our reagents and chemicals are you know imported so indirectly we are also impacted but we 33:55 33 minutes, 55 seconds are able to absorb that inflationary cost because of our volume. Right now we don't have any you know uh which is uh 34:04 34 minutes, 4 seconds you know linked to directly linked to dollar because we buy from Indian companies. Uh on the on the other side 34:14 34 minutes, 14 seconds this EU trade deal is very early to comment on. Uh definitely there may be some opportunity in future which can 34:21 34 minutes, 21 seconds come but right now it is too early to comment on that. 34:26 34 minutes, 26 seconds Okay. And in case these reagent prices actually go up, uh do you think we can pass them on without impacting volume growth? 34:36 34 minutes, 36 seconds So uh you know we have long-term contracts with most of our large suppliers. 34:42 34 minutes, 42 seconds So right now we are uh we are not having that but uh yes of course if dollar trajectory is upwards like this then 34:51 34 minutes, 51 seconds definitely we have to review and uh review our pricing again. 34:56 34 minutes, 56 seconds Understood. And one question on the radiology plan. So you mentioned that going as per plan. Um so in the normal 35:04 35 minutes, 4 seconds course uh if it goes as per your plans um when can we see a significant ramp up 35:11 35 minutes, 11 seconds on that strategy? Would it be in in couple of years or would it be in five years? 35:18 35 minutes, 18 seconds So the radiology of uh contribution to our business is less than 5%. 35:24 35 minutes, 24 seconds and uh you know even a significant ramp up may or may not immediately you know impact the overall fortunes of the 35:33 35 minutes, 33 seconds company. But having said that uh you know we are definitely understanding uh the business model around high-end 35:42 35 minutes, 42 seconds radiology uh in brand strong urban markets uh and then we will also maybe try and understand in some other uh 35:50 35 minutes, 50 seconds markets and then figure out our uh you know long-term strategy. So having said that uh you know in terms of time 35:59 35 minutes, 59 seconds horizon like you said it is unlikely to uh to be uh a significant contributor to 36:07 36 minutes, 7 seconds topline growth at least not in the next 2 three year scenario. Thank you. 36:14 36 minutes, 14 seconds Thank you. Thank you. 36:20 36 minutes, 20 seconds Next question is from S Mukharji from Namura. Please go ahead. 36:25 36 minutes, 25 seconds Yeah, good evening and thanks for taking my question. Uh sir, you mentioned about the patient volume growth uh you know at 36:33 36 minutes, 33 seconds four to 5% which you think can increase going forward. It may not be a step up uh but it will it can go up. If you can 36:43 36 minutes, 43 seconds you know share your thoughts as to what we should look at uh you know what would drive that and also acquisition small 36:51 36 minutes, 51 seconds big um ask is that a possibility you see uh in the current uh environment and can that emerge as a driver for you? 37:03 37 minutes, 3 seconds Right. So, so for the organic uh patient volume growth, uh there are you know one or two obviously uh quite clear levers 37:12 37 minutes, 12 seconds that I think you spoken about earlier and uh the most important one is the uh the spread and the access that we are uh 37:21 37 minutes, 21 seconds increasing for patients. You see the number of new testing labs and the collection network expansion that we have stepped up over the last 2 years is 37:31 37 minutes, 31 seconds uh is aimed at uh you know uh getting more wider geographic spread and 37:37 37 minutes, 37 seconds therefore ability to access a larger population and give more access to a population to come and uh you know use 37:46 37 minutes, 46 seconds our our brand for their diagnostic needs. So I think that's number one and and then primarily over and above that 37:55 37 minutes, 55 seconds even through our existing network you know there are patient acquisition activities that we keep doing from time to time uh and our uh you know tier 38:04 38 minutes, 4 seconds three uh tier 4 and rural uh push that we have been undergoing for uh uh over I 38:13 38 minutes, 13 seconds would say maybe four to 5 year journey that we have had on that is also uh you know going to help us get the organic 38:21 38 minutes, 21 seconds volume on the inorganic side. uh uh you know definitely there is uh appetite uh 38:29 38 minutes, 29 seconds on for for us to be looking at uh organic inorganic opportunities and we 38:35 38 minutes, 35 seconds are on the uh lookout for for uh for suitable uh uh inorganic opportunities 38:43 38 minutes, 43 seconds which which can fit into our portfolio and our uh you know our strategic uh growth areas. 38:53 38 minutes, 53 seconds And so I mean uh are you looking at uh I mean how should I say like you know is it like midsize chain big chains or 39:01 39 minutes, 1 second individual labs what kind of acquisition are most likely 39:08 39 minutes, 8 seconds so uh I think the uh it's not that we we look at um you know all kinds of options 39:16 39 minutes, 16 seconds because it is geography uh specific I think the south market uh is something where we would definitely like to have 39:25 39 minutes, 25 seconds something which is reasonably large at least maybe a top three top five player in a given city with a slightly larger 39:33 39 minutes, 33 seconds platform play which we can then adopt and grow. Whereas in some of our other northeast maybe even some parts of west 39:41 39 minutes, 41 seconds we are open to doing standalone lab acquisitions which gives us uh you know maybe access to some micro market or or 39:50 39 minutes, 50 seconds some other benefit which we are maybe not able to get through our normal organic business. 39:57 39 minutes, 57 seconds Understood. So on the pricing front I understand like it's been like 3 years you know there has not been any price 40:04 40 minutes, 4 seconds increase. In fact, you mentioned there has been a you know the GST cut uh uh on inputs were passed on. So what are what 40:13 40 minutes, 13 seconds is the view on pricing? Uh when do you plan to take uh you know some price increase? Can we expect this year or next year? Any thoughts around that? 40:23 40 minutes, 23 seconds So you know uh like V mentioned we have we have just taken a decision to do a price cut to pass on you know the GST 40:32 40 minutes, 32 seconds benefit. uh so that cycle has to run for some time uh before we consider a price 40:39 40 minutes, 39 seconds increase. So therefore I definitely don't see a price increase on the horizon at least or not for the next uh two to three quarters. 40:48 40 minutes, 48 seconds Okay. Okay. Okay sir. Uh I have more questions. I'll just join back. Thank you. Thank you. 40:56 40 minutes, 56 seconds Thank you. The next question is from Sham Srasan from Goldman Sachs. Please go ahead. 41:03 41 minutes, 3 seconds Yeah, good evening. Thank you for taking my question. Just uh one on uh on the realization part again. I'm just calculating revenue per patient from 41:10 41 minutes, 10 seconds your revenue numbers and the patient numbers. Uh so that's come up by 7 and a half%. Um you you mentioned I think that 41:18 41 minutes, 18 seconds GST cuts have not come in Q3 so I'm assuming it's in Q4. So um you know what would be some of the enablers of this uh 41:26 41 minutes, 26 seconds would it be higher fit? Can you just explain that or has the environment from a competitive standpoint been a lot more easier you think? 41:37 41 minutes, 37 seconds So uh the GST price cut has was taken in Q3 but it was maybe towards the end of Q3. So obviously the full impact has 41:46 41 minutes, 46 seconds still not is not maybe reflecting in the uh RPP of Q3. Uh to that extent you are 41:52 41 minutes, 52 seconds right. Um it is it is a combination of uh test and geography mix uh that we are 42:00 42 minutes seeing in terms of RPP. As as we said you know Delhi NCR continues to grow double digits uh and we all understand 42:08 42 minutes, 8 seconds that Delhi NCR is a is a higher RPP market for us compared to the rest of the country and we are also have some 42:15 42 minutes, 15 seconds test mix benefits that uh that are there. So those are the major contributory factors for uh you know the 42:23 42 minutes, 23 seconds geography and the test mix for the RPP increase that we see. 42:28 42 minutes, 28 seconds That's helpful sir. Uh just the second question is on you know you alluded to higher growths over time. Um you know 42:36 42 minutes, 36 seconds are we talking about not the 11 to 12% but are we talking about higher than that? uh we think um you know and you 42:44 42 minutes, 44 seconds know at some point of time if it's 3 four five quarters later we are looking at price increases could could we then go beyond the 12% uh on a medium-term 42:52 42 minutes, 52 seconds base I'm not holding you to a specific year but just want to understand um you know are we is the trajectory looking up at any point of time 43:00 43 minutes yeah I think the thought process that you are saying is is reasonable uh we are looking at uh you know 11 to 12% is 43:09 43 minutes, 9 seconds what we've been saying for this financial Yeah. So going forward if that becomes our our baseline we obviously would like to be slightly better than 43:16 43 minutes, 16 seconds that and uh maybe 3 four quarters down the line we you know the price increase window may open up again. 43:27 43 minutes, 27 seconds Yeah just and and what would be a trigger for a price increase? I'm just curious. We have not done it for many. 43:32 43 minutes, 32 seconds Any anything that you think will then say you know this this prompts us to take prices. Is there something that we monitor closely? um is it inflation? I'm 43:42 43 minutes, 42 seconds just I'm just curious how what what would trigger a price increase? 43:45 43 minutes, 45 seconds I think there are there are two triggers we look at. One one is obviously you know uh internal cost is one uh thing 43:53 43 minutes, 53 seconds which we continues to look at how much we can absorb or what is it that can't get absorbed etc. And second would also 44:01 44 minutes, 1 second be the external pricing table because um you know we don't want to get uh into a 44:07 44 minutes, 7 seconds situation where where we are not uh or we we seem to be falling off the pricing premium table because there are quality 44:16 44 minutes, 16 seconds connotations associated with price in our country still. 44:20 44 minutes, 20 seconds Got it. Got it. Thank you and all the best here. Thank you. Thank you. 44:26 44 minutes, 26 seconds Next question is from Surya Naray and Patra from Philip Capital. Please go ahead. Yeah. Uh thanks for the opportunity sir. 44:35 44 minutes, 35 seconds Uh my first question is on the the Saboka in initiative. So I just wanted to 44:43 44 minutes, 43 seconds Yeah. Yeah. So waka so I just wanted to understand sir how is this compment different from the west fit and whether 44:52 44 minutes, 52 seconds this will be complementing fit growth and uh uh another point here is that uh can this soaka initiative be scalable and scalable beyond the NCR. 45:06 45 minutes, 6 seconds So uh so SOAKaka and swastfit are very different in their uh idea and execution. So Swastfit is a pathology 45:16 45 minutes, 16 seconds only and widely distributed uh and accessible uh you know testing portfolio which we 45:25 45 minutes, 25 seconds said not only do we do in urban centers, it also goes into tier 2, tier three uh tier four towns uh you know across the 45:33 45 minutes, 33 seconds country. Uh Svaka is a is a personalized customized uh wellness preventive 45:40 45 minutes, 40 seconds wellness setup which integrates uh you know pathology and uh imaging including 45:48 45 minutes, 48 seconds high-end imaging and is a specific centerdriven uh uh touch and feel experience uh for 45:56 45 minutes, 56 seconds for people who are who are looking at really in-depth understanding of their in of their individual uh uh health status. So this is kind of centerdriven. 46:08 46 minutes, 8 seconds Uh as of now it's the first center that we have launched. Uh again you know this will be on a mode where where we will 46:15 46 minutes, 15 seconds see how we are scaling this uh the the patient footfall the walkins etc and the buildup of this center. I think only 46:24 46 minutes, 24 seconds basis that will we decide how do we scale it but uh you know there are there will be there could be possibly multiple modes or models of scaling. uh but yeah 46:34 46 minutes, 34 seconds the scalability is is way beyond Delhi NCR once we get the model right. 46:38 46 minutes, 38 seconds Okay. So is it fair to believe this way sir swit is a kind of annual uh testing mechanism while soaka would be a once in 46:48 46 minutes, 48 seconds a lifetime or once in 10 year kind of thing. 46:51 46 minutes, 51 seconds So both are both are annual. Uh it's just that the type of testing is different and the offering is very 46:58 46 minutes, 58 seconds different. uh uh both are both are uh annual in nature from a preventive side. 47:06 47 minutes, 6 seconds Sure. 47:07 47 minutes, 7 seconds Yeah. So sorry just on the swaste it is not only you know preventive wellness but it is in our case most of the time 47:15 47 minutes, 15 seconds it is upselling maybe you know patient who are coming for individual test they are you know trying to take this uh 47:23 47 minutes, 23 seconds package because it makes sense and avoid multiple you know visits uh where they can get a lot more test in single visit. 47:32 47 minutes, 32 seconds So it is not always preventive wellness while swaka is purely preventive preventive and wellness kind of thing 47:40 47 minutes, 40 seconds but uh swastit is always you know where we have patient who comes in need also. 47:47 47 minutes, 47 seconds Okay. Yeah. Uh thank you for that sir this is helpful. Uh just one more on the whether we do get any benefit out of 47:55 47 minutes, 55 seconds this uh Aishman Bharat digital mission uh uh uh success what we have seen. 48:05 48 minutes, 5 seconds So as of now you know uh we are we are enabled to incorporate ABA ids into our 48:12 48 minutes, 12 seconds system. So whosoever is is giving us uh uh you know their aba ids we we put it 48:18 48 minutes, 18 seconds into their records uh the aba ids uh but uh uh you know primarily ABDM is still 48:25 48 minutes, 25 seconds focused on uh you know the hospital care uh diagnostics uh as of now we haven't 48:33 48 minutes, 33 seconds yet seen uh u any any reasonable thing to believe that it's this can become a 48:40 48 minutes, 40 seconds key driver of growth. uh for us right now. Sure. Yeah. Thank you. Thanks a lot. Thank you. 48:48 48 minutes, 48 seconds Thank you. 48:50 48 minutes, 50 seconds Before we take the next question, a request to participants to please limit your questions to two per participant. 48:58 48 minutes, 58 seconds The next question is from Vamsi Hot from ASK Investment Managers. Please go ahead. 49:04 49 minutes, 4 seconds Hi. Uh thanks for the opportunity. Uh so my first question is on the extent of utilization of both the Mumbai and Bangalore reference labs. So given that 49:13 49 minutes, 13 seconds we continue to open about 600 to 800 uh collection centers annually uh with greater focus on the high growth north 49:20 49 minutes, 20 seconds market sets of Delhi, how do you plan to ramp up the utilization of these two specific reference labs? 49:28 49 minutes, 28 seconds So you the reference lab uh capacity you know by design is uh is very high. Okay. 49:38 49 minutes, 38 seconds Because it depends on uh you know what uh type of machine modularity that is currently deployed and and there 49:45 49 minutes, 45 seconds is obviously ability for us to keep deploying more. So uh so a lab is designed with a with a life which says 49:53 49 minutes, 53 seconds you know we are looking at maybe a 10 15 20 year outlook on a reference lab uh 50:00 50 minutes kind of a setup. Uh so I don't think that kind of correlates with the uh with 50:07 50 minutes, 7 seconds the structure of uh uh network collection that is going in other parts 50:14 50 minutes, 14 seconds of the uh country. So the reference lab actually helps in in building the the tier wise hub and spoke model that we 50:23 50 minutes, 23 seconds work on. So we've got reference lab then hub labs then you know cluster labs and satellite labs and then front end we 50:30 50 minutes, 30 seconds have the collection network. It's about putting a certain test menu in the market and then our ability to really build that test menu with the local 50:39 50 minutes, 39 seconds prescribing community in the catchment area and our ability to deliver that you know timely reports and the quality 50:46 50 minutes, 46 seconds report from the reference lab that we have for that geography. So that is an independent task and does not uh 50:53 50 minutes, 53 seconds necessarily correlate with saying that you know uh more uh collection network will certainly mean more capacity 51:01 51 minutes, 1 second utilization at a at a reference level that is helpful sir I'll just ask one more question um so given that we follow 51:09 51 minutes, 9 seconds a revenue sharing u arrangement with our franchise network and that in market flex of Delhi we end up sharing more 51:15 51 minutes, 15 seconds than 25% of our revenue with the network don't you foresee incremental uh you know margin dilution given franchiseeled 51:24 51 minutes, 24 seconds growth. If not uh how much more bandwidth do we have on expanding our epida margins via process efficiencies and leverage given that you know all of 51:32 51 minutes, 32 seconds our growth has been volume and priced at least over the last two years. 51:37 51 minutes, 37 seconds Okay. I think ways will add to whatever I say. uh you I think you know the uh 51:45 51 minutes, 45 seconds one must understand that when a franchisee uh is given a margin there are certain uh tasks of the uh of the 51:54 51 minutes, 54 seconds whole process which also get outsourced and there is a there is a certain uh uh uh you know uh benefit that we also get 52:03 52 minutes, 3 seconds because of you know accumulation of samples and you know uh and on top of that we get an independent entrepreneur 52:10 52 minutes, 10 seconds or who's also kind of really running after uh generating uh business for us. 52:16 52 minutes, 16 seconds So there are multiple uh reasons why uh the franchisee uh footprint works for us 52:23 52 minutes, 23 seconds and we've been able to really develop a very strong mechanism of uh of franchisee management. If you see 52:32 52 minutes, 32 seconds besides Delhi NCR the uh the model of you know uh franchisee uh revenue share 52:41 52 minutes, 41 seconds is different in certain other geographies depending upon how the competition layout competition etc is. 52:48 52 minutes, 48 seconds So we've been able to manage it quite well till today in terms of our overall uh portfolio margin and and we don't see 52:55 52 minutes, 55 seconds any reason why uh that can't be managed uh going forward as well. Um so you know V you want to add anything to that? No. 53:05 53 minutes, 5 seconds So I I I don't think uh margin it is you know where it is dilutive because first of all uh this model of having a 53:15 53 minutes, 15 seconds franchisee is uh because of scalability because you know and not putting a fixed overhead on our head because there is an 53:23 53 minutes, 23 seconds entrepreneur who always drive and you know it's a variable model where you share out of your revenue share instead 53:30 53 minutes, 30 seconds of you know incurring on uh on your own infra cost. So in spite of you see our contribution has increased so much we 53:38 53 minutes, 38 seconds are we are not diluting our margins in fact we are you know getting operating leverage because we already have testing 53:46 53 minutes, 46 seconds outlets we have all already you know capacity which is available and we can leverage on that so I don't think uh 53:53 53 minutes, 53 seconds this will dilute our margin sure sir so incrementally how much more scope uh or you know rather another way 54:01 54 minutes, 1 second to ask this is what is the you dream state that you kind of look at. 54:08 54 minutes, 8 seconds So uh you know I think uh we are very near the dream state if you ask me because uh we would rather uh see if we 54:17 54 minutes, 17 seconds are we we feel that we are in a position to generate more margin. I would rather see how can it be deployed back to 54:24 54 minutes, 24 seconds generate growth sustainable growth over the long term. I think the the margin profile that we run 27 to 28% uh aida uh 54:34 54 minutes, 34 seconds is a is a very uh we are maybe in the uh quote unquote what you say dream state. 54:44 54 minutes, 44 seconds Sure sir very helpful. Thank you and all the best. Thank you. Thank you. 54:54 54 minutes, 54 seconds Next question is from Reed Jane from Nvesh. Please go ahead. Hello. Hello. 55:02 55 minutes, 2 seconds Yeah. Yeah. 55:04 55 minutes, 4 seconds Uh I basically my question was uh the molecular diagnostic clear like 3B black bio or my lab Malvio uh they are coming 55:14 55 minutes, 14 seconds into the industry like Malio find their IPO TRSP. So basically are they a competition or are they a supplier to us 55:21 55 minutes, 21 seconds for kids and how is that molecular diagnostic industry growing? Can you give a color on that? 55:29 55 minutes, 29 seconds So so mall bio is a is a is a vendor is a supplier. they aren't really into 55:37 55 minutes, 37 seconds front- end retail pathology as far as I'm aware and uh uh so uh so that is one 55:45 55 minutes, 45 seconds question and you know molecular testing obviously is seeing uh increase uh you know over time and uh PCR testing etc. 55:56 55 minutes, 56 seconds So, so yeah, I think uh that part of the portfolio uh uh should increase. I think um uh 56:04 56 minutes, 4 seconds maybe more traction will will come on that portfolio also because of the oncology 56:11 56 minutes, 11 seconds uh testing etc happening. I think that portfolio will will see uh 56:19 56 minutes, 19 seconds uh and I think the second thing which Dr. Lal is also mentioning is that we see genetics again another area where 56:25 56 minutes, 25 seconds you know quite a bit of traction uh we foresee will come uh in the market. 56:33 56 minutes, 33 seconds So basically can you tell the reasons why that side of portfolio is doing why 56:40 56 minutes, 40 seconds such extensive tests are uh taking market share from this uh simple testing 56:48 56 minutes, 48 seconds I don't think it replaces simple testing please understand what is happening is when you get into genetic testing or molecular testing these are more 56:57 56 minutes, 57 seconds personalized customized and you know more deeper testing but that doesn't take the need way of uh routine or 57:05 57 minutes, 5 seconds regular testing. Actually on the contrary as people get diagnosed with more you know difficult or complex 57:12 57 minutes, 12 seconds conditions for therapy and the patient management the routine testing is required and that need may actually go up. So I don't see it to be a 57:21 57 minutes, 21 seconds replacement rather you know it it is more about building and helping build your clinical uh you know superiority as 57:31 57 minutes, 31 seconds well as the trust with the with the clinicians of our ability to really solve the complex diagnostic problems. 57:39 57 minutes, 39 seconds Uh I think that is where uh these portfolios uh uh also play a role role uh in our uh in our business. 57:49 57 minutes, 49 seconds and uh this is Dr. Lal and we are also acutely aware of the increase in testing and for 57:58 57 minutes, 58 seconds all these non-communicable uh you know diseases NCDS so which are basically basic diseases in our jargon 58:07 58 minutes, 7 seconds but at the same time the numbers are humongous led by diabetes high blood pressure and you know lipid profiles and 58:16 58 minutes, 16 seconds of course cancer is catching up liver kidney So all all these are a very large set of uh uh diseases which we club 58:26 58 minutes, 26 seconds under NCDS. So there's a remarkable improvement or performing because 65% of the Indians are dying from these 58:34 58 minutes, 34 seconds diseases every day. Non-communicable diseases, lifestyle diseases. Of course infectious diseases have not left us. 58:40 58 minutes, 40 seconds They're about 35%. But right now NCDS are catching up. 58:48 58 minutes, 48 seconds Thank you. 58:50 58 minutes, 50 seconds Next question is from Lokesh Manik from Valum Capital. Please go ahead. 58:55 58 minutes, 55 seconds Yes. Hi, good evening to the team. Uh just one clarification I needed. Uh the 59:02 59 minutes, 2 seconds new initiative of KAFA. Uh would this would you say this is more like a GPC 4A 59:09 59 minutes, 9 seconds direct to customer 4A uh versus our established model where you know the uh the doctor and the lab setup may not 59:17 59 minutes, 17 seconds exactly be in the same premises versus a SOA which would be in the similar premises with obviously more advanced uh 59:25 59 minutes, 25 seconds advanced testing and advanced services uh product portfolio. Would that be a correct assessment? 59:31 59 minutes, 31 seconds So uh uh so Suvaka like I was mentioning earlier is a preventive uh testing uh uh 59:40 59 minutes, 40 seconds and on a wellness testing driven uh platform. So to that extent you know it 59:48 59 minutes, 48 seconds it can see more self uh generated tests uh but it does not mean that there is 59:56 59 minutes, 56 seconds not going to be clinician referred uh testing here as well. So I think uh uh you know even annual health checks which 1:00:05 1 hour, 5 seconds people do they may end up showing it to a a clinician after that. So, so therefore uh you know it is not an 1:00:13 1 hour, 13 seconds eitheror but uh but yeah compared to the standard diagnostic uh lab testing where 1:00:20 1 hour, 20 seconds uh primarily uh much more prescription-driven testing is happening in this situation we might see more uh 1:00:28 1 hour, 28 seconds slightly more uh selfdriven testing as well. 1:00:32 1 hour, 32 seconds Yeah. So so this would be company owned right? This would not be franchising or channel partners. 1:00:37 1 hour, 37 seconds Yeah. Yeah. Yeah. This is company owned fully company owned. Yeah. 1:00:41 1 hour, 41 seconds And and even when you plan to scale it will be companydriven model. It will not be outsourced to. So the scaling so the 1:00:49 1 hour, 49 seconds scaling model scaling model we will we will enumerate uh later because you know once we have the experience of running 1:00:58 1 hour, 58 seconds the center obviously many more uh uh details will be with us for us to then 1:01:05 1 hour, 1 minute, 5 seconds decide but the flagship store is company owned. That's it for my thank you so much. 1:01:12 1 hour, 1 minute, 12 seconds Thank you. Thank you very much. 1:01:16 1 hour, 1 minute, 16 seconds We'll take that as the last question. I would now like to hand the conference back to the management team for closing comments. 1:01:24 1 hour, 1 minute, 24 seconds Thank you all for joining the call today and for your continued trust and support. We hope we have been able to address your questions satisfactorily. 1:01:33 1 hour, 1 minute, 33 seconds Should you have any further queries, please feel free to reach out to us. 1:01:38 1 hour, 1 minute, 38 seconds Thank you once again and have a good evening. Thank you very much. 1:01:45 1 hour, 1 minute, 45 seconds On behalf of Dr. Lal Pat Labs Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.