Metropolis Healthcare Ltd — Q4 FY26

Metropolis Healthcare Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=RYyWe9Mse_w Published: 3 hours ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 and FYI26 earnings conference call of Metropolis Healthcare 0:07 7 seconds Limited hosted by Ambbit Capital. This conference call may contain forward-looking statements about the company which are based on the beliefs, 0:15 15 seconds opinions, and expectations of the company as on date of this call. These statements do 0:22 22 seconds not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listenonly mode. 0:32 32 seconds There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference call, 0:40 40 seconds please signal an operator by pressing star and then zero on your touchstone telephones. Please note that this 0:47 47 seconds conference call is being recorded. I now hand the conference over to Mr. Gorov Tanani from Ambit Capital. Thank you and over to you Mr. Tanani. 0:57 57 seconds Uh thank you Farah and good morning everyone. On behalf of Amber Capital, we welcome you all on the Q4 and FI26 1:05 1 minute, 5 seconds earnings conference call for Metropolis Healthcare Limited. 1:09 1 minute, 9 seconds Today on the call, we are joined by Miss Amir Sha the promoter chairperson and wholetime director, Mr. Surendran Si, 1:18 1 minute, 18 seconds the managing director and Mr. Samir Patel the chief financial officer for Metropolis Healthcare Limited. We will 1:26 1 minute, 26 seconds begin the call with opening remarks from the management followed by a question and answer session. Thank you and over to you ma'am. 1:35 1 minute, 35 seconds Thank you so much and good morning everyone and thanks for joining us today for the Q4 and the FY26 earnings conference call of Metropolis 1:43 1 minute, 43 seconds Healthcare. As mentioned, I'm joined by Furin, by Samir, and also by Moan, the CMO, and the rest of the leadership team 1:50 1 minute, 50 seconds and the IR advisor. We've uploaded our investor presentation and related documents on the stock exchanges and the company's website, and I hope everyone's 1:58 1 minute, 58 seconds had an opportunity to go through the same. Let me begin with the brief perspective on the broader diagnostics landscape landscape before I move into the company specific updates. 2:08 2 minutes, 8 seconds The diagnostics industry in India continues to evolve in a very constructive direction. We're seeing a steady shift towards organized trusted players like Metropolis as doctors and 2:17 2 minutes, 17 seconds consumers are placing greater emphasis on quality standards, scientific expertise, lab compliance, and an overall superior experience. This 2:26 2 minutes, 26 seconds transition reflects a maturing market where trust and reliability are becoming central to decision-m. At the same time, the industry is also gradually moving 2:34 2 minutes, 34 seconds beyond routine testing led growth with stronger contribution now coming from specialty diagnostics wellness and more complex and clinically relevant testing. 2:44 2 minutes, 44 seconds These areas not only enhance the depth of diagnostic insights, but also align more closely with evolving healthcare needs. In parallel, factors such as 2:53 2 minutes, 53 seconds deeper digital engagement, improved consumer awareness, and a rising focus on longitudinal health monitoring are creating new opportunities for scaled 3:02 3 minutes, 2 seconds and credible diagnostic platforms. This broad direction has been visible in our earlier quarterly commentary as well, where we've consistently highlighted 3:10 3 minutes, 10 seconds preventive care, specialty testing, AIE enablement, genomics, and customer engagement as key structural drivers shaping the future growth of the sector. 3:19 3 minutes, 19 seconds While competition will always be there, we believe the structural runway for us is strong without any unreasonable or disruptive competitive environment. 3:28 3 minutes, 28 seconds Metropolis remains well positioned in the industry because our moat is built on capabilities that are difficult to replicate at scale. Consistent lab 3:36 3 minutes, 36 seconds quality, deep and long-standing doctor engagement, strong scientific and clinical expertise, best-in-class tech platforms, and a highly standardized operating model across the network. 3:47 3 minutes, 47 seconds Together, these elements create a foundation that goes well beyond surface level differentiation and support sustained performance over time. In 3:55 3 minutes, 55 seconds diagnostics, trust is built not only through brand visibility and geographical reach, but through the accuracy, consistency, and reliability 4:02 4 minutes, 2 seconds of what happens behind the scenes in the lab. Institutional knowledge built over years of experience further strengthens this backbone by ensuring that complex 4:11 4 minutes, 11 seconds cases are handled with depth and accuracy. This remains one of the key reasons why Metropolis continues to earn trust for doctors and patients and 4:19 4 minutes, 19 seconds sustain its leadership in the premium diagnostic space on digital and AI. Our approach continues to be practical, 4:26 4 minutes, 26 seconds measured and focused on high impact use cases. We do not see AI as a near-term disruptor in pathology, but an important 4:33 4 minutes, 33 seconds enabler of productivity, service quality, customer engagement, and workflow efficiency. Over the past few quarters, we have strengthened our 4:42 4 minutes, 42 seconds digital and AI tools across customer and partner platforms, lead management, workflow automation and contact center 4:49 4 minutes, 49 seconds quality, and selective diagnostic applications. 4:53 4 minutes, 53 seconds Together, these initiatives are helping us build a stronger operating backbone, improve productivity and efficiency, enhance customer experience, and support 5:02 5 minutes, 2 seconds more scalable and sustainable growth for years to come. Our genomics journey has continued to advance steadily and 5:09 5 minutes, 9 seconds remains a key strategic pillar for the future. With the integration of core diagnostics and the ongoing strengthening of our central genomics 5:16 5 minutes, 16 seconds platform, we are deepening our capabilities across critical areas such as oncology, reproductive health, 5:24 5 minutes, 24 seconds inherited disorders and physician diagnosis. This platform is now anchored by two CAP accredited genomic labs in 5:31 5 minutes, 31 seconds Gura and Bombay along with a growing team of genetic counselors across the country strengthening our ability to deliver high-end genomic testing with 5:40 5 minutes, 40 seconds quality interpretation and scale. This integration has also enabled us to expand access to high-end genomic testing across India through both our 5:48 5 minutes, 48 seconds B2C and B2B. Anyone can add machines but the real difference in results is the personalized interpretation needed for 5:57 5 minutes, 57 seconds every patient and that lies in the institutional expertise and knowledge and not in the equipment. As a result, Metropolis is increasingly positioned as 6:05 6 minutes, 5 seconds a trusted and credible leader in specialty genomics testing with the ability to deliver advanced solutions at scale. We see genomics evolving into a 6:14 6 minutes, 14 seconds significant growth driver over time, particularly in disease segments where precision, nuanced interpretation and strong scientific engagement are 6:22 6 minutes, 22 seconds essential. The participation and response we received at our recent genomics and scientific symposiums in Mumbai and Chennai have been so strong 6:30 6 minutes, 30 seconds clearly depicting there are big gaps in the market for good clinical reports which we can fill. We believe this a strong testament to the clinical trust 6:38 6 minutes, 38 seconds in Metropolis and to the relevance of the scientific platform we are continuing to build in genomics. 6:45 6 minutes, 45 seconds At the same time, we continue to make steady progress on productivity and platform modernization. Over the last few quarters, we have worked on lab 6:52 6 minutes, 52 seconds platform upgrades, infrastructure consolidation, vendor consolidation, and more optimal use of technology across the network. These efforts are help are 7:01 7 minutes, 1 second helping simplify the operating backbone, improve efficiency and support structural cost discipline over time. 7:08 7 minutes, 8 seconds On the inorganic front as well, integration is progressing broadly in line with our expectations. For core diagnostics, we had committed that within four quarters of doing the 7:17 7 minutes, 17 seconds acquisition, we would move from a negative 2% EBITA to a high singledigit EBITA in Q4. We have completed this 7:24 7 minutes, 24 seconds mission. We are on our path for our three-year commitment for a 20% plus IBIDA at core. Over the past few 7:32 7 minutes, 32 seconds quarters, our priority has been on stabilization at core, driving forces, alignment, integrating platforms, and realizing synergies across the acquired 7:40 7 minutes, 40 seconds businesses so that they are seamlessly embedded within the metropolis umbrella and operating DNA. We're now beginning to see tang tangible value emerge not 7:49 7 minutes, 49 seconds just from increased scale but from enhanced capabilities, lab consolidation, better network utilization, procurement efficiencies, and a stronger foundation to support 7:58 7 minutes, 58 seconds future growth. As we move ahead, our focus will shift from more towards driving volumes and scaling the platform. This in turn will unlock 8:07 8 minutes, 7 seconds efficiencies and leverage providing a clear pathway for margin expansion over time. 8:12 8 minutes, 12 seconds Speaking of FY26, it's been a strong and well executed year for Metropolis. We delivered organic revenue growth of 13.7% 8:20 8 minutes, 20 seconds better than our stated guidance of 12 to 13%. On a normalized basis, organic margins expanded by around 140 basis points to 25.9%. 8:31 8 minutes, 31 seconds Supported by sustained productivity improvements, ongoing lab platform upgrades and consolidation initiatives. 8:38 8 minutes, 38 seconds As you know, we had also done a bonus share issue on March 26 to enhance liquidity of our share for shareholders. 8:44 8 minutes, 44 seconds I'm pleased to share that the board has also recommended another interim dividend of rupees 1 per share. This reflects the strength of our financial 8:52 8 minutes, 52 seconds pl position and our continued commitment to creating long-term value for shareholders. 8:57 8 minutes, 57 seconds Looking at the past three years, we have accomplished the following. an organic keer revenue growth of 13% on a like-to-lifeike basis which is largely 9:06 9 minutes, 6 seconds driven by test volume and patient volume growth restored organic revenue margins to precoid levels of around 26%. 9:16 9 minutes, 16 seconds Expanded lab capacity by more than 50% and increased our presence to more than 750 towns and cities across India. 9:25 9 minutes, 25 seconds built a strong retail D2C mindset resulting in the self refresher contributing 40% and B2C business 9:32 9 minutes, 32 seconds accounting for 60% of revenues both creating a more sticky higher margin business model for the future we 9:39 9 minutes, 39 seconds expanded into basic radiology and vital checks in some centers on a pilot basis and are encouraged by the response we also in the last three years established 9:48 9 minutes, 48 seconds a robust technology architecture from the ground up enabling digital channels to grow from 0% to 25% % of revenue 9:55 9 minutes, 55 seconds while making the organization significantly more automated. We also strengthened our scientific capabilities and enhanced our reputation amongst 10:03 10 minutes, 3 seconds doctors and hospitals and added the entire genomics segment. This will lead to better price elasticity and the highest specialty mix in the industry. 10:13 10 minutes, 13 seconds We also expanded our north India business increasing the contribution from mids singledigit contribution to 10:19 10 minutes, 19 seconds revenue to 17% of revenues and we added and enhanced and create built a stable and better quality management team that 10:27 10 minutes, 27 seconds can take the business forward over the next three years. The vision is the following to grow at a faster keer of 14 to 15% in revenue over 3 years. 10:39 10 minutes, 39 seconds Organic revenues would come primarily via patient volumes, RPP growth and price increases and some part of this 10:46 10 minutes, 46 seconds would come uh also by adding sorry additional part of it would also come via adding strategic and value additive acquisitions. 10:56 10 minutes, 56 seconds Um even though we are building a target for acquisition, these would only happen if it's at the right deal at the right price and not just to add growth. 11:05 11 minutes, 5 seconds We are going to reimagine our processes through automation and technology enablement to drive center productivity and margin expansion with the goal of 11:13 11 minutes, 13 seconds achieving a sustainable group IDA margin of 27 to 28% over the next three years supported by profitability across every 11:21 11 minutes, 21 seconds regional market and bringing core to a 20% plus margin profile. 11:26 11 minutes, 26 seconds We would like to continue to be the most respected scientific brand but not just in the west and south but also in the north and east of India by building relationships and trust among doctors. 11:37 11 minutes, 37 seconds We're also building a network of 100 mini hubs over the next over the next three years which would encompass pathology and basic radiology to service 11:45 11 minutes, 45 seconds retail and corporate clientele. 50 mini hubs would be the existing collection center locations upgraded to many hubs and 50 would be new centers to be set 11:53 11 minutes, 53 seconds up. We expect these centers to allow us to provide more services to our existing B2C customers and also corporate clients and insurers. 12:02 12 minutes, 2 seconds We would expand our asset light collection center network by adding 1500 more centers, taking the lab to center 12:09 12 minutes, 9 seconds ratio to 1 is to 35 from the current 1 is to 24 and enhancing center 12:16 12 minutes, 16 seconds productivity of existing centers by 20% over 3 years. We would also like to build capability in Metropolis to build 12:23 12 minutes, 23 seconds a tech- enabled D2C vertical focusing on enhanced chronic business acquired and serviced via digital and physical 12:31 12 minutes, 31 seconds channels. Digital revenue in metropolis has a higher customer lifetime value than brick and motor business and this 12:38 12 minutes, 38 seconds would enhancing the digital contribution would enhance the RPP growth. Overall, the direction of the business continues 12:46 12 minutes, 46 seconds to strengthen with stronger foundations, sharper execution, and better visibility ahead. With that, I'll now ask Srain to take you through the operational 12:54 12 minutes, 54 seconds performance and key business drivers for the quarter and the full year. 12:59 12 minutes, 59 seconds Thank you Amira and good morning everyone. Let me take you through our performance for the quarter and the full year and then spend some time on the key 13:07 13 minutes, 7 seconds business drivers across channels, network productivity, margins, and operating outlook. 13:13 13 minutes, 13 seconds For quarter 4 uh 26, ML group revenue stood at 425 cr reflecting a year-on-year growth of 23%age with a bit margin of 25.4%age. 13:25 13 minutes, 25 seconds For the full year, revenue stood at 1646 crores, growing 23.6% yearonear with an AIA margin of 24.4%age. 13:35 13 minutes, 35 seconds Just as importantly, the underlying quality of growth remains strong, supported by patient growth, realization improvement, better mix, and 13:43 13 minutes, 43 seconds productivity gains. On an organic basis, revenue grew by 14.7%age in quarter 4, driven largely by patient volume growth 13:51 13 minutes, 51 seconds of 9.3%age and relaxation improvement of around 5%age. For the full year, organic revenue growth stood at 13.7%age. 14:00 14 minutes As Amira mentioned, it is also important to note that unlike last year, we did not take a price increase in quarterfo 14:07 14 minutes, 7 seconds due to GST reasons. This indicates that the quarterly performance was driven by healthy underlying demand, mix 14:15 14 minutes, 15 seconds improvement and better execution leaving the price as an opportunity for the growth later growth later in the year. 14:24 14 minutes, 24 seconds for fully of 26 was important for was not just important for the performance we delivered but also for the progress 14:32 14 minutes, 32 seconds we made on several structural changes initiated last year. This includes strengthening strengthening the network through lab consolidation and the 14:40 14 minutes, 40 seconds sharper center tolab ratio, driving productivity and margin improvement initiatives across the lab platform changes building stronger and better 14:48 14 minutes, 48 seconds quality B2B business progressing our M&A integration playbook and advancing our digital agenda. Importantly, these are 14:56 14 minutes, 56 seconds not one-time actions. They are structural changes intended to improve the quality and sustainability of growth in revenue and profitability over time. 15:05 15 minutes, 5 seconds Let me first talk about the channels in B2C organic revenue. We continue to see strong traction with revenue growth of 15:12 15 minutes, 12 seconds 14.7% in the quarter and 14 percentage for the full year. This was supported by the healthy demand across wellness, 15:19 15 minutes, 19 seconds specialtity and routine testing along with better customer engagement through both physical and digital channels. In B2B organic revenue grew by 14.7%age in 15:29 15 minutes, 29 seconds quarter 4 and 13.3%age for the year. We have been working on improving ease of doing business, enhancing service 15:36 15 minutes, 36 seconds consistency, deepening institutional and corporate relationships, and building a more sustainable portfolio with better unit economics. From a segment 15:45 15 minutes, 45 seconds standpoint for the organic revenue, true health and specialtity continue to perform very strongly. True health and 15:52 15 minutes, 52 seconds specialtity grew by 20%age and 17%age respectively in the quarter and by 21 percentage and 16% respectively for the 16:00 16 minutes full year. These categories continue to improve both customer engagement and overall mix quality of the business. Let 16:07 16 minutes, 7 seconds me now come to network and productivity because this is becoming an increasingly important part of our journey. Over the last few years, we have invested 16:15 16 minutes, 15 seconds significantly in expanding and strengthening our lab and service center backbone. At a buildout, phase is now largely behind us and the focus has 16:24 16 minutes, 24 seconds clearly shifted from expand capex to throughput productivity. In other words, the priority today is not just to add 16:32 16 minutes, 32 seconds more infrastructure, but to get more output, better efficiency and stronger leverage from the instructions we have already created. This is a key shift in 16:41 16 minutes, 41 seconds our operating model and one of the important drivers of margin improvement going forward. During the year, we added 16:48 16 minutes, 48 seconds 490 centers, taking our total network to over 5,000 collection centers across more than 750 towns and 212 labs. At the 16:58 16 minutes, 58 seconds same time the productivity of the existing network improved with the same lab growth at about 14 percentage and sended to lab resource strengthening 17:07 17 minutes, 7 seconds from 20 is to one to 20 is 24 to1. This is a clear testament to the focus exhibition over the last year on 17:14 17 minutes, 14 seconds improving network density and driving higher throughput from the infrastructure we have already built. 17:19 17 minutes, 19 seconds Over the next 18 months, we expect to strengthen the feeder center network further and move this ratio closer to 30 17:27 17 minutes, 27 seconds to1 in many markets depending on cluster maturity and over threeear horizon. We want to take this to 35 to1 lab to 17:35 17 minutes, 35 seconds center ratio. Another important driver of uh improvement this year has been our productivity and margin agenda. During 17:43 17 minutes, 43 seconds the year, we continue to work on lab testing platform upgradation and standardization, equipment vendor consolidation, better inventory 17:51 17 minutes, 51 seconds discipline through barcoding and more optimal use of technology in labs across the country. These interventions are improving turnaround time, material 18:00 18 minutes productivity and throughput across the network and the benefits started coming in through in quarter 4. We expect them to strengthen further over the next two 18:08 18 minutes, 8 seconds quarters as implementation progresses across the network. 18:12 18 minutes, 12 seconds Organ organic EIA margin for the quarter stood at 27.2%age compared to 18.5%age in the same period 18:19 18 minutes, 19 seconds last year while the full year aid margin came in at 25.9%age. 18:24 18 minutes, 24 seconds Although the prior prior year margin was partly impacted by one-time acquisition related cost. Then AITA margin expanded 18:32 18 minutes, 32 seconds by 140 basis points even after adjusting for these cost. This improvement was driven by a combination of better 18:39 18 minutes, 39 seconds operating leverage, stronger speciality and wellness mix, productivity gains, integration synergies from acquisitions and ongoing efficiency initiatives 18:47 18 minutes, 47 seconds across industry. On acquisitions, the portfolio continue to progress well. 18:53 18 minutes, 53 seconds Core diagnostics has improved to a high singledigit margin in quarter 426 while Deron Agra Kapur acquisition continue to 19:01 19 minutes, 1 second operate at margins above the company average. Over the past last few calls, we have been clear that this year one is 19:08 19 minutes, 8 seconds year one is about integration, cleanup and efficiency followed by revenue acceleration on a stronger platform. We believe we are now building a repeatable 19:16 19 minutes, 16 seconds playbook for M&A integration across processes, people, systems, quality standards and commercial synergies and that will remain an important capability 19:25 19 minutes, 25 seconds for us going forward. To summarize uh financial year 26 was a year in which both our business fundamentals and our 19:33 19 minutes, 33 seconds operating model became meaningfully stronger. As we exit the year we are seeing strong momentum across multiple areas of the business. Patient volume 19:42 19 minutes, 42 seconds growth remained healthy in the 7 to 8 percentage range supported by the lab additions made over the last few years. 19:49 19 minutes, 49 seconds Continuous center expansion quarter after quarter and the acceleration of our digital agenda. We are optimistic of sustaining the same going forward. At 19:57 19 minutes, 57 seconds the same time, RPP growth is being driven by an improving mix led by enhanced true health offerings, higher specialtity mix and increasing 20:06 20 minutes, 6 seconds contribution from genomics. Together, these drivers are helping us deliver consistent and broad-based revenue growth. Importantly, this growth is 20:14 20 minutes, 14 seconds being complemented by a sustainable margin improvement. Our lab platform upgrades, vendor consolidation initiatives, and multiple productivity 20:22 20 minutes, 22 seconds improvement programs are now translated into stronger operating leverage across the network. We're also seeing an encouraging progress in improving 20:30 20 minutes, 30 seconds network productivity, strengthening the quality of B2B business and successfully integrating acquisition through a more structured and scalable playbook. What 20:39 20 minutes, 39 seconds is particularly encouraging is that these gains are not driven by one-off factors but by structural changes we have been implementing across the 20:47 20 minutes, 47 seconds business over the last year. This gives us the confidence that the business is not only growing but growing in a more sustainable, efficient and high quality 20:56 20 minutes, 56 seconds manner. With this I hand it over to Samir who will take us through the details of the financial highlights. Thank you and over to you Samir. 21:04 21 minutes, 4 seconds Thank you Shel and good morning everyone. Let me briefly walk you through the key financial highlights for both and fully 26 for both organic 21:13 21 minutes, 13 seconds business and MHL group. Let's start with organic business. Organic business has delivered a strong and consistent performance during the quarter and the 21:22 21 minutes, 22 seconds year driven by healthy growth across both B2B B2B and B2C segment. Quarter for FI26 revenue stood at 392 cringing 21:32 21 minutes, 32 seconds 14.7% year-onear supported by 9% growth in both patient and test volume. Full 21:38 21 minutes, 38 seconds year FI26 revenue stood at 1510510 cr reflecting 13.7% yearon-year growth 21:46 21 minutes, 46 seconds with patient volume growth at 7 and a half% and test volume growth at 8%. B2C and B2B revenue for the quarter grew at 21:54 21 minutes, 54 seconds 15% year-on-year while full year FI26 B2C and B2B revenue grew by 14% and 13.3% 22:03 22 minutes, 3 seconds respectively. Our focus segment continued to perform well. The true health segment contributed 19% of FY26 22:11 22 minutes, 11 seconds revenue grew by 21% year-on-year and speciality segment contributed 37% of revenue with 16% year-on-year growth. 22:21 22 minutes, 21 seconds With respect to margins, Cotto Abitar stood at 107 cr with a margin of 27.2% 22:28 22 minutes, 28 seconds 2% grew 69% year-on-year. Ful year FI26 AITAR stood at 392 cr with a margin of 22:36 22 minutes, 36 seconds 25.9% reflecting 29% year-on-year growth. Quarterf stood at 55 cr with a 22:43 22 minutes, 43 seconds margin of 14.1% grew 89% year-onear FI26 pack stood at 194 cr with a margin 22:51 22 minutes, 51 seconds of 12.8% growth of 33% yearonear. 22:56 22 minutes, 56 seconds Now talking about mature group performance at MH group level performance remained robust across revenue volume and profitability. 23:05 23 minutes, 5 seconds Quarter 4 FI26 revenue stood at 425 cr 23% yearon year with a patient volume 23:12 23 minutes, 12 seconds growth of 11% and test volume growth of 14%. Full year FI26 revenue stood at 23:19 23 minutes, 19 seconds 1646 cr reflecting 236 23.6% 6% year-on-year growth with a patient and the test volume growth of 12 and 13% 23:27 23 minutes, 27 seconds respectively. Across channel quarterf B2C and B2B revenue grew by 20% and 28% 23:35 23 minutes, 35 seconds yearonear respectively. Full year FI26 B2C and B2B revenue grew by 19% and 31% 23:44 23 minutes, 44 seconds year-on-year respectively. Segment performance continued to continued to be strengthened. The two health segment 23:50 23 minutes, 50 seconds contributed 18% by 26 revenue grew by 27% yearonear. The speciality segment contributed 39% of revenue with a strong 24:00 24 minutes 32% year-on-year growth. Profitability remained strong. Quarter 4 Abit stood at 24:06 24 minutes, 6 seconds 108 cr with margin of 25.4% grew 71% yearon year. Full year 26 stood 24:15 24 minutes, 15 seconds at 401 cr with a margin of 24.4%. 4% reflecting 32% growth year on year. 24:22 24 minutes, 22 seconds Quarter four pack stood at 51 cr with margin of 12% 7 grew by 75% yearon year. 24:31 24 minutes, 31 seconds Full year FI26 pack stood at 191 K with a margin of 11.6% grew by 31% yearon 24:38 24 minutes, 38 seconds year. Now talking about the capex for the year we have incurred a capex the capex stood at 65 cr. As highlighted 24:45 24 minutes, 45 seconds earlier, our capital allocation strategy is becoming increasingly selective and prior to driven. Investments are now 24:53 24 minutes, 53 seconds focused on targeted network addition, specialtity test expansion, technology upgrades, and digital capabilities. 25:02 25 minutes, 2 seconds With most of the lab network already in place, future growth is expected to benefit from improvement, improved operating leverage, and enhanced 25:11 25 minutes, 11 seconds productivity as volume continues to scale. With this I open the floor for Q&A. Thank you. 25:18 25 minutes, 18 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephones. 25:29 25 minutes, 29 seconds If you wish to remove yourself from the queue, you may enter star and two. 25:33 25 minutes, 33 seconds Participants are requested to please use only handsets while asking a question. 25:37 25 minutes, 37 seconds We will wait for a moment while the queue assembles. 25:41 25 minutes, 41 seconds The first question is from the line of toss from BNP. Please go ahead. 25:46 25 minutes, 46 seconds Uh good morning and thanks for the opportunity. Uh we have talked about our revenue growth guidance of mid teens for next two to three years. Can you give 25:55 25 minutes, 55 seconds some more color on this? Uh can you tell us uh in last two quarters have you seen some uh structural shift from unorganized player to organized player 26:04 26 minutes, 4 seconds and uh any competition threat from online players? 26:08 26 minutes, 8 seconds See there's no third party data available which tells you sort of the move from unorganized to organized but our you know be having feet on the ground 26:17 26 minutes, 17 seconds the sense like I mentioned in the speech is that there is a a movement happening where consumers and doctors are finding 26:24 26 minutes, 24 seconds uh more comfort in bigger brands uh which have more predictability and also the specialty market is increasing. uh 26:32 26 minutes, 32 seconds you know we have to remember that uh oncology and neurology are the two fastest growing therapeutic segments globally over the next 10 years and as 26:40 26 minutes, 40 seconds more of these issues come into India as well it means more specialty tests will happen rather than just routine which naturally will happen with the more organized players and less with the 26:48 26 minutes, 48 seconds unorganized players. So this mid- teens growth 14 to 15% that we've guided for the next three years is obviously a 26:56 26 minutes, 56 seconds combination of a volume um you know RPP increase as well as some price increase uh and that's the break up of it. 27:05 27 minutes, 5 seconds Ma'am do you plan to take a price hike in this fiscal? 27:10 27 minutes, 10 seconds Well, at this point of time, we are not looking at a price increase, but as the things progresses during the year. If there is a need for us to do it, no, we would not hesitate to do it. 27:22 27 minutes, 22 seconds Okay. Just a follow-up question on your guidance. We have guided a better margin of 27 to 28% next to three years, but how much you see the next fiscal would 27:30 27 minutes, 30 seconds be in the range of 26. That's quite achievable. 27:33 27 minutes, 33 seconds So, we'll definitely looking at about 125 to 150 BPS improvement in the coming year. 27:41 27 minutes, 41 seconds Okay. Uh that's helpful. I'll get back in the queue. 27:44 27 minutes, 44 seconds Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead. 27:53 27 minutes, 53 seconds Ram line is Yeah. Yes. Uh hello. Can you hear me? Yeah, we can. 28:01 28 minutes, 1 second Yeah. So, uh just a follow up on the guidelines partly. you mentioned that we will be growing at 14 to 15% uh a year 28:08 28 minutes, 8 seconds over the next 3 years. Uh how much will be this from the volume growth in terms of like the patient volume growth and 28:16 28 minutes, 16 seconds how much will be it in terms of you know uh better price realization coming from speciality and code diagnostics. 28:26 28 minutes, 26 seconds So about 8 to 9% of patient volume growth is what we are in estimating for the coming fiscal pushup right and the 28:34 28 minutes, 34 seconds remaining 5%age will be coming from the realization. 28:40 28 minutes, 40 seconds Understood. And uh my next question is with respect to the specialty division. 28:47 28 minutes, 47 seconds Uh for like for the past two years uh the contribution the revenue makes from specialtity division has been around 28:54 28 minutes, 54 seconds hinging around 35 to 37%. So are you planning to increase your wallet share in the speciality division like 29:02 29 minutes, 2 seconds contributions from your speciality division going forward or do you think this is a healthy mix? 29:11 29 minutes, 11 seconds Yeah, definitely. I think you know there are two big levers that we have over and above the already existing specialtity 29:18 29 minutes, 18 seconds testing capabilities that we have. One of course you know we talked about the genomics you know journey that we have already started off and accelerating and 29:26 29 minutes, 26 seconds second one is a core diagnostic you know product capability that we have which will use it across our network. I mean these two things added to our otherwise 29:34 29 minutes, 34 seconds the specialtity portfolio that we have should be able to take the uh specialtity contribution further higher. 29:42 29 minutes, 42 seconds So are you expecting that this year it it will be around 40%. I think so. Yes. Yeah. 29:50 29 minutes, 50 seconds Okay. Thank you sir. 29:52 29 minutes, 52 seconds Thank you. The next question is from the line of Sudashan Agarwal from Access Capital. Please go ahead. 30:00 30 minutes Yeah. Hi. Thank you for taking my question. Um in the initial comments you said uh you are adding some 100 mini hubs. Uh can you tell me the nature this 30:08 30 minutes, 8 seconds is how this is different uh versus your collection centers and how many do you have in your existing networks and what 30:16 30 minutes, 16 seconds is the differentiation in terms of uh you know capeex requirement per let's say minihub versus your normal collection centers. 30:25 30 minutes, 25 seconds So a normal collection center just uh you know obviously collect we collect blood samples there and then transport it to lab for testing. One of the things 30:32 30 minutes, 32 seconds that we have done over the past two years is we have added some ECG X-ray and in some limited location sonography 30:39 30 minutes, 39 seconds as well to sort of see whether we are able to increase the RPP per patient by doing that and we have found that that 30:47 30 minutes, 47 seconds has helped us um and therefore we wanted to now go out and do this in a bigger way. Now it will not be about just 30:53 30 minutes, 53 seconds adding X-ray ECG but maybe some more basic radiology modalities not like a CT MRI but more basic modalities like it 31:02 31 minutes, 2 seconds could include in some cases a bone density in some cases a mamog mamogram magography machine or in some cases a 31:10 31 minutes, 10 seconds bigger X-ray machine and the idea is basically that you're creating enough services at the local level which is not 31:18 31 minutes, 18 seconds just blood but blood plus radiology plus in some cases This require a consultation possibility uh and making 31:24 31 minutes, 24 seconds these into slightly bigger more serviced infrastructure centers which can be then utilized not only for retail customers but for corporate customers as well. 31:35 31 minutes, 35 seconds Okay. Got it. And capex would be higher for these centers. Of course, it will be higher. It'll be higher than a 31:43 31 minutes, 43 seconds collection center, but it'll probably be similar to sort of a lab, a satellite lab, you know, about uh 30 40 lakh of 31:51 31 minutes, 51 seconds rupees is approximately what we are estimating at this point of time. 31:55 31 minutes, 55 seconds Yeah. Got it. Thanks. And last uh one more on the bookkeeping side. So, I was looking at your uh you know bridge 32:02 32 minutes, 2 seconds through organic to group. So when you mentioned that core diagnostic is at high single digit but if I subtract your 32:09 32 minutes, 9 seconds MHL group revenues and Aida to your MHL organic numbers the M&A portion margin 32:16 32 minutes, 16 seconds comes to around four to 5%. So um is there some intersegment elimination that is happening uh because I cannot 32:24 32 minutes, 24 seconds reconcile the numbers to high single digit otherwise. 32:28 32 minutes, 28 seconds Yeah certainly. So what happens when the business is generated from ambit and and the processing happening on on the 32:36 32 minutes, 36 seconds specialy in the core at the uh consolidation level there is an elimination of revenue and and the margin which is done and therefore you 32:44 32 minutes, 44 seconds see okay that benefit may be then sitting on the organic uh margin that you have. 32:52 32 minutes, 52 seconds Yes. Got it. 32:54 32 minutes, 54 seconds And last one last bookkeeping uh your depreciation increased uh quite sharply on a Q1Q basis. I assume this is due to 33:02 33 minutes, 2 seconds the uh genomic machinery that was expected or there was some one-off or impairment that happened during this quarter. 33:08 33 minutes, 8 seconds It's a mix of few things. Certainly genomic machine has come also uh the capex investment has been in the later 33:16 33 minutes, 16 seconds part of the year and hence the quarterf sees the full depreciation impact also the network expansion was also more 33:23 33 minutes, 23 seconds aggressive in the second half so that's where those elements are reflecting in depreciation important thank you that is it from my 33:33 33 minutes, 33 seconds thank you the next question is from the line of Surya from Philip Capital please go ahead 33:42 33 minutes, 42 seconds Yeah, thanks for this opportunity and congrats on the great set of numbers. Uh my first question is on the growth side. 33:49 33 minutes, 49 seconds Uh uh what I'm seeing that okay the tier one, tier two, tier three. See all the reasons the growth looks similar because 33:57 33 minutes, 57 seconds the revenue mix also similar on a Y basis. So the general understanding is 34:04 34 minutes, 4 seconds that uh the tier 2 tier three should be growing faster than the cities because cities would be having the all possible 34:11 34 minutes, 11 seconds format of competition. So so what's the question? So, so question 34:21 34 minutes, 21 seconds is that okay, so are we not anticipating better growth or faster growth in the 34:27 34 minutes, 27 seconds beyond tier one market uh and hence a progressively better growth with the mix improving towards that side. All right, 34:36 34 minutes, 36 seconds let me help you to decode the tier wise growth. You know, tier one, tier two growth. See, tier one, we have added core, you know, core diagnostics coming 34:44 34 minutes, 44 seconds on largely on tier one setup and you see a much higher growth in tier one for the last year. And similarly on the tier 34:51 34 minutes, 51 seconds two, you have cities like Nadun, Aagra etc got added and you will find a higher growth in tier two and tier three we are growing at about 26 to 30%age in the 35:00 35 minutes last few quarters. So definitely the tier three and above is showing a much higher growth you know than the tier one 35:07 35 minutes, 7 seconds tier two on a like to like basis and it will be continue to be so. 35:14 35 minutes, 14 seconds Okay. And uh this uh uh digital style initiatives what we are talking about should we consider that as a kind of a 35:21 35 minutes, 21 seconds lever for margin expansion or it drives even volume? Yeah. Uh it it it drives volume first and of course you know the 35:29 35 minutes, 29 seconds cost of servicing is relatively uh you know lesser than that of uh non inorganic channel. So definitely the 35:37 35 minutes, 37 seconds margins get better as our digital revenue scales up. 35:42 35 minutes, 42 seconds Okay. Just to add, look, just to add, it depends on the way you acquire a customer, right? I mean, look, there are 35:49 35 minutes, 49 seconds many health tech companies which are looking at deep discounting to acquire customers, which is not the metropolis way. So, if you do deep discounting to 35:58 35 minutes, 58 seconds acquire, then obviously that business may not have strong unit economics and may not be positive profitably. But the kind of business that Metropolis is 36:05 36 minutes, 5 seconds acquiring digitally is more on the back of already a strong brand that we have and physical channels on the ground which allows us to therefore have a 36:13 36 minutes, 13 seconds lower cost of acquisition, a lower cost of servicing and a higher customer lifetime value which could therefore result in a better margin for 36:21 36 minutes, 21 seconds metropolis. Doesn't mean it's the standard for the whole industry. 36:25 36 minutes, 25 seconds No ma'am. Uh another point was about the growth in northern growth fun. Is there any scope for that? Because it looks 36:33 36 minutes, 33 seconds like that okay having done the core diagnostic now we are focusing more on the organic part and uh we also do 36:41 36 minutes, 41 seconds understand that uh the targets in the diagnostic space within India if we see it is more more or less singular labs 36:49 36 minutes, 49 seconds largely. So hence M&A possibility looks limited or uh less. So what is your view on that one? The scope of the inorganic 36:57 36 minutes, 57 seconds growth. See actually there are um like you said rightly there are some three lakh labs in India and 90 you know uh 37:06 37 minutes, 6 seconds odd percent of them are single labs. Uh there are some chain labs which have been created regionally and there are many many assets available for 37:14 37 minutes, 14 seconds acquisition but we generally find that the quality of many of the assets available for acquisition may not be up to our um uh sort of standards of what 37:24 37 minutes, 24 seconds we would like to buy. Um so we will continue to be selective but we continue to see opportunities at play. Uh we 37:31 37 minutes, 31 seconds continue to explore them and obviously when something looks like the right candidate which is adding something strategic to us at the right price then 37:39 37 minutes, 39 seconds obviously is when we go ahead to try to close a deal. But in in broad I think we can continue to see an organic action for the next few years. 37:47 37 minutes, 47 seconds Okay. Just one clarification from my side. uh what portion of our let's say test volume would be led by insurance uh 37:55 37 minutes, 55 seconds companies you know that's very very insignificant at this point of time we don't have a high volumes on insurance segment as of 38:03 38 minutes, 3 seconds now we just building a portfolio at this point of time sir yeah thank you wish you all the best 38:10 38 minutes, 10 seconds thank you thank you the next question is from the line of sham shiniasan from Goldman Sachs please go ahead 38:18 38 minutes, 18 seconds uh good morning thank Thank you for taking my question. Just uh one on the opening remarks of uh trying to increase our uh branch productivity or franchise 38:28 38 minutes, 28 seconds uh a network productivity by 20% for mature stores. Can you just double click on that please? 38:35 38 minutes, 35 seconds So we have set up all these uh let's say last year 500 centers and the year before that 500 centers in the initial 38:43 38 minutes, 43 seconds days. uh you know once the uh the centers are set up you know we just drive for improving the walk-ins into 38:50 38 minutes, 50 seconds the centers by engaging with the doctors nearby and know we engaging with the hospitals clinics etc nearby and you 38:58 38 minutes, 58 seconds know also doing many other you know activities to engage with the customers in the neighborhood so that helps us to improve the productivity of each of the 39:07 39 minutes, 7 seconds centers that we have set up so I mean I mean on a year-on-year basis you know about 8 to 10% percentage improvement on 39:14 39 minutes, 14 seconds the productivity of the same center on a 3 years period we are definitely able to get a 20%age improvement uh from the same centers that we have set up in the 39:21 39 minutes, 21 seconds last maybe couple of years is there any absolute number that we are starting with like this is the right 39:28 39 minutes, 28 seconds numbers per center if if there is any metric like that so for us you know our own centers for example the average productivity is 39:36 39 minutes, 36 seconds around you know uh three and a half lakhs to four lakhs per center you know when we set up in year one you know This comes to around by the end of the year 39:44 39 minutes, 44 seconds one you know we do about one one and a half lakhs and we bring this into about three lakhs at the end of the third year. So that's the number for our own 39:52 39 minutes, 52 seconds centers and these numbers different differ for the franchisee centers and the rural centers. 39:59 39 minutes, 59 seconds Got it. Very helpful. Just my second question on the uh other comment on digital channels right that they now contribute did I get it right when it 40:07 40 minutes, 7 seconds said it's contributing 25% of revenue uh if you could explain that please and and what are some of the measures I I know we've been investing in technology but 40:16 40 minutes, 16 seconds just want to understand u the nature of this channel um uh is it like D2C u or 40:23 40 minutes, 23 seconds uh am I missing something here no these are largely D2C let me talk about three distinct channels One of course you know our metropolis app we 40:32 40 minutes, 32 seconds drive customers through the metropolis engage engage with them and secondly I mean we you know acquire customer through our website you know where we 40:41 40 minutes, 41 seconds will you know encourage the customer to come and you know place his request for test and third one is our you know the customer data platform which is a CLM 40:50 40 minutes, 50 seconds engine that we talk about existing customer we reach out to them through the digital modes and give them the what the next best action or on the basis of 40:57 40 minutes, 57 seconds their past uh you testing trends, you know, what's the right thing for them to do in the coming days, you know, and these are three big, you know, uh, 41:06 41 minutes, 6 seconds initiatives that we do to drive the digital, you know, customer acquisition. 41:14 41 minutes, 14 seconds Yeah, thank you and all the best. Thank you. 41:17 41 minutes, 17 seconds Thank you. The next question is from the line of Alankar Garud from KOTC Institutional Equities. Please go ahead. 41:24 41 minutes, 24 seconds Hi, good morning everyone. Uh Samir can you elaborate further on the inter segment eliminations and how long will these eliminations continue? 41:34 41 minutes, 34 seconds It will be there always because when we uh core as a business is going to process genomics business and 41:41 41 minutes, 41 seconds anthropology businesses and while the revenue will generated across the network that is the synergy benefit that we we are expanding this test menu to 41:49 41 minutes, 49 seconds across the country or our client uh and clinicians that is from where the revenue will generate and then the processing will happen. So that's why 41:57 41 minutes, 57 seconds the intercomp uh transfers will happen and the elimination will there. 42:02 42 minutes, 2 seconds In fact if I can just add on to what Sam said you know one of our objective is to drive high-end oncology revenue of the core products through the MHL 42:11 42 minutes, 11 seconds distribution network. So we will keep on stepping up this particular engine and start selling more and more core products through the MHL distribution 42:20 42 minutes, 20 seconds engine. So you will as the revenue grows and of course there will be more and more intercomp adjustments. But when you look at the group level, you know, this 42:27 42 minutes, 27 seconds anyways gets neutralized and you know we'll report the uh net number at the group level as you know. 42:34 42 minutes, 34 seconds Got it sir. Just thinking whether ideally we should split the intersegment eliminations between the organic and 42:41 42 minutes, 41 seconds inorganic AITA when you report it in your presentation. 42:46 42 minutes, 46 seconds uh would that be a better approach or uh you you think uh organic ITA is what the two AITA is as as you report in the presentation. 42:56 42 minutes, 56 seconds Honestly it we can go and split the hairs but the reality is now the acquisition is a year old. So everything is going to be organic anyway from April 43:03 43 minutes, 3 seconds 1st. So it it really doesn't matter. It will all get consolidated into the group anyway. 43:10 43 minutes, 10 seconds So onwards you will be seeing only one number in all our you know presentations which is the or the organic or a company 43:18 43 minutes, 18 seconds level number. Last year we provided this because you know the acquisitions were just happening and integrations were happening. 43:25 43 minutes, 25 seconds Fair enough. Uh the second question is you have been seeing a pretty good increase in revenue per patient as well 43:32 43 minutes, 32 seconds as revenue perh test despite not taking any price hikes over the last few quarters. Now premiumization and true 43:40 43 minutes, 40 seconds health have been important drivers specifically on true health based on the visibility you have today from 19% currently till what level can the mix increase to uh over the longer term. 43:52 43 minutes, 52 seconds Well, I mean this can definitely go beyond 25 percentage as well. I mean in the next two to three years period and I mean every year I think we are moving 43:59 43 minutes, 59 seconds this up by a couple of percentage. Maybe in the coming years we will further step up our efforts to make it faster because we are now in the true health packages. 44:10 44 minutes, 10 seconds We are including vital checkup consults basic radiology you know and also going forward maybe some of the other adjacent services we'll keep adding. So you know 44:18 44 minutes, 18 seconds the overall RPP will keep getting better on the true health packages. So we would like to see this going moving faster the contribution of true health moving faster in the coming years. 44:29 44 minutes, 29 seconds Understood sir that's it from my side. Thank you. 44:33 44 minutes, 33 seconds Thank you. The next question is from the line of Kunal Tanvi from Banyan Tree Advisors. Please go ahead. 44:40 44 minutes, 40 seconds Hi thank you for the opportunity. Uh I had two questions. one was on you know the gross margin expansion that we have 44:48 44 minutes, 48 seconds seen you know for metropolis and for other place as well. Uh if you can you know double click on this you know explain us uh what is that is driving 44:56 44 minutes, 56 seconds this gross margin improvement. Is it only the scale advantage that we are seeing from our suppliers or it is also to do with the on round competitive 45:05 45 minutes, 5 seconds intensity kind of softening in last one year because the trend has been true for almost all the district players. Um that 45:14 45 minutes, 14 seconds was first question. Uh the second question is on on core markets is something like Mumbai like what kind of volume growth are we witnessing there 45:22 45 minutes, 22 seconds because you know uh few phone calls we said that we've been gaining market share in core markets like Mumbai as well. uh is the trend still you know uh 45:31 45 minutes, 31 seconds continuing and the last one was we've talked about you know the lab expansion uh is largely behind us and from here on 45:40 45 minutes, 40 seconds we'll see operating leverage if you can you know uh again uh double click on the current utilization uh level on a 45:49 45 minutes, 49 seconds console basis and how that is expected to move around in FI27 and then in J these are three questions thanks 45:58 45 minutes, 58 seconds okay let uh address the first question which is the you know gross margin improvement and there are two things which is really helping us to improve 46:06 46 minutes, 6 seconds the gross margin. One is like we mentioned in our uh speech you know we have undertaken a lab platform consolidation and upgrades. You know we 46:15 46 minutes, 15 seconds are just consolidating some of the vendors and moving into better higher efficient more productive technology enabled and scalable platforms. You know 46:23 46 minutes, 23 seconds in this process you know we will get you know scale advantage in this case get some advantages coming out of the technology and overall our material 46:31 46 minutes, 31 seconds consumption hence you know improves and also during this year we have introduced you know barcoding in all our 220 lamps 46:40 46 minutes, 40 seconds which has also further helped us improve our you know material consumption percentages. And second thing that we mentioned you know last year we have not 46:49 46 minutes, 49 seconds significantly added any more new labs you know the our lab addition phase is over I mean year back you know in the coming year also we are not planning to 46:57 46 minutes, 57 seconds add a you know high number of labs in the network. So these two things will definitely is helping us to improve the 47:04 47 minutes, 4 seconds gross margins you know and um the second question was about uh um you know what do you say the 47:13 47 minutes, 13 seconds uh the Mumbai city uh volume side I think it's largely in line with the overall volume of the of the company uh 47:21 47 minutes, 21 seconds volume growth it's I mean give or take one person here and there that's the numbers that we see across the geographies but of course uh we see a a 47:29 47 minutes, 29 seconds much higher patient volume growth on the northern part of the market for us. I mean for this year because of the new acquisitions that we have done on that 47:38 47 minutes, 38 seconds side but otherwise largely across the country we are getting um stable and good patient volume growth across. 47:48 47 minutes, 48 seconds Sure. And on the utilization of overall lab capacity, see we talked about you know the the lab you know what you call productivity has 47:58 47 minutes, 58 seconds gone up by 14 uh percentage during this year right because that's why we we do not add any more labs and add more 48:05 48 minutes, 5 seconds centers to feed them the lab utilization you know goes up you know see the all these labs are of a different category 48:14 48 minutes, 14 seconds you know some of them are big regional reference labs some of them are global labs some of them are satellite labs and some of them are green field labs. You know it's very difficult for us to give 48:22 48 minutes, 22 seconds a one unit as the lab utilization per say for the in this in this business. So I mean we can talk more about when we 48:31 48 minutes, 31 seconds set up a lab you know we are just starting fresh and know every year is the growth goes up by 14 15 percentage you know that's utilization growth that you can know relate to. 48:42 48 minutes, 42 seconds Got it. If I can squeeze one more question uh that was uh to do with uh uh when we think when we are talking about 48:51 48 minutes, 51 seconds you know this productivity improvements you know the efficiency improvement use of technology etc etc uh you know from a 48:58 48 minutes, 58 seconds longerterm perspective with like say five years 10 years out what kind of you know uh steady state margins uh this business should have because with the 49:07 49 minutes, 7 seconds kind of gross margin expansion that we have seen like you know what is at some stage is when you know the expansion when most of the lab that they're adding 49:15 49 minutes, 15 seconds today will get kind of you know utilized for you know to an optimal level like 49:21 49 minutes, 21 seconds this 27 28% margin is the aspired to make or over longer period 49:28 49 minutes, 28 seconds margins can even go further if if we don't choose to invest aggressively the way we've done in last years 49:36 49 minutes, 36 seconds see margins can keep expanding till the time you have operating leverage right I mean as long as you're able to um uh keep growing the business and your cost 49:45 49 minutes, 45 seconds growth is lower. You can keep having operating leverage. But finally, I think when we are building a business, you look at it not only from a short-term basis, but a medium and long-term basis 49:53 49 minutes, 53 seconds and keep reinventing yourself and keep investing in strategic initiatives that allow you to build second and third growth engines for the future. So 50:02 50 minutes, 2 seconds maximizing the IBIDA and uh may not in our mind be the smartest strategy. We believe a sustainable IBIDA uh at this 50:10 50 minutes, 10 seconds point over the next three years uh of 27 to 28% makes sense for us and if we are able to generate more operating leverage 50:18 50 minutes, 18 seconds we would like to invest it back in the business either in terms of adding services or building the brand further or building further distribution. Um 50:27 50 minutes, 27 seconds that's the direction we would like to go. 50:31 50 minutes, 31 seconds Makes sense. All the very best. Thank you. Thank you. Thank you. 50:35 50 minutes, 35 seconds Thank you. The next question is from the line of Costa BNA from BMSPL. Please go ahead. 50:42 50 minutes, 42 seconds Yeah. Hi, thanks for taking my question. 50:44 50 minutes, 44 seconds Uh, you know, previously you mentioned that your growth in tier one 50:51 50 minutes, 51 seconds uh areas is less than it's in single digits. So I wanted to understand really 50:58 50 minutes, 58 seconds because let's take Mumbai for example, right? Uh so in Mumbai even a tier one 51:06 51 minutes, 6 seconds city is uh broken down into different areas where consumption patterns would be 51:14 51 minutes, 14 seconds different because of the type of people with different income levels staying in those areas. So if you take if you take 51:23 51 minutes, 23 seconds Bombay for example right and you say your what what would your growth rate 51:31 51 minutes, 31 seconds expected growth rate be in a place like Mumbai and if you had to actually break that down between the areas of Mumbai 51:38 51 minutes, 38 seconds like you know north south like eastern more more eastern area like the Kalyan side etc. uh what would you say 51:47 51 minutes, 47 seconds metropolic's uh how you call it presence is in these areas and how will the growth rates 51:55 51 minutes, 55 seconds differ before differ in these different areas of Mumbai see u Mumbai is our biggest market as 52:01 52 minutes, 1 second you know you know we have about 500 service centers across Mumbai not only in the metropolitan area but also spread 52:10 52 minutes, 10 seconds into you know across even the you know outskirts of Mumbai so we present you know you know whichever you know whether 52:18 52 minutes, 18 seconds it's kalyan or borilli or I mean virasai I mean all areas we are spread off and we keep increasing the uh you know 52:26 52 minutes, 26 seconds network print footprint in this area so this is a continuous process and in Mumbai also we are going at 13 14 52:33 52 minutes, 33 seconds percentage kind of a revenue growth you know year-on-year basis now it will be difficult for me to share you know further micro market segmentation of 52:42 52 minutes, 42 seconds Mumbai and tell you how much is the kalyan growth how a tani growth that will be very difficult for me to share with you but uh at a overall level most 52:50 52 minutes, 50 seconds parts of the Mumbai are growing at 13 14%age kind of a growth and just to clarify I think the tier one growth is not single digit but it's closer to 11%. 53:01 53 minutes, 1 second Okay, okay, okay. Thank you. Thank you. 53:05 53 minutes, 5 seconds Thank you ladies and gentlemen. Due to time constraints, that was the last question. I now hand the floor over to the management for closing comments. 53:17 53 minutes, 17 seconds Thank you to all uh for joining us today for uh the Q4 and the FY26 earnings call. We appreciate all the engagement 53:24 53 minutes, 24 seconds and all the questions. Uh we've had quite a tremendous year uh not only a year with the strong uh organic growth 53:31 53 minutes, 31 seconds but a year of uh fundamental building which has also uh helped us and expand our margins uh quite significantly and 53:39 53 minutes, 39 seconds also a year where we did four acquisitions and have not only absorbed them but seamlessly integrated them uh into the business uh you know realizing 53:47 53 minutes, 47 seconds obviously a a very fast growth rate of about 23.6% uh for the whole year. Um we are very 53:56 53 minutes, 56 seconds very excited and positive about the next three years. Uh and we believe that uh we are three or four channels uh or we 54:03 54 minutes, 3 seconds are three or two sort of pillars. We'll continue to build the business very strongly. Uh we are doubling down on technology. Uh we are doubling down on 54:12 54 minutes, 12 seconds building engagement with our consumers and building the brand through experience and doubling down on science uh and really building the scientific 54:20 54 minutes, 20 seconds foundation even stronger. Um obviously all of this is going to be enabled by uh the right people, the right talent and 54:28 54 minutes, 28 seconds finally to result uh in a commercially and a stronger business and a bigger business um uh in the next few years to 54:35 54 minutes, 35 seconds come. Um so we continue to remain excited and we look forward to meeting all of you soon. Um and we are looking 54:42 54 minutes, 42 seconds forward to actually planning a uh sort of a day in our lab sometime in June or July. uh we'll come back to a lot of you 54:49 54 minutes, 49 seconds uh where we would be very happy to host you, show you around uh and engage even deeply more deeply. Thank you so much. 54:57 54 minutes, 57 seconds Thank you very much. On behalf of Ambit Capital, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.