Dr. Lal Pathlabs Limited — Interim / Quarterly Report 2022

Jul 30, 2021

July 30, 2021

The National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai - 400051

The Bombay Stock Exchange Limited 15th Floor, Phiroze Jeejeeboy Towers Dalal Street, Mumbai – 400001

Subject: Outcome of Board Meeting held on July 30, 2021

Ref: Compliances under SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015 ("Listing Regulations")

Dear Sir/Madam,

Please take note that the Board of Directors in their meeting held today i.e. July 30, 2021 approved Unaudited Financial Results (Standalone and Consolidated) of the Company for the Quarter ended June 30, 2021.

A copy of the Results along with Limited Review Report issued by the Statutory Auditors M/s Deloitte Haskins & Sells, LLP on such financials for the Quarter ended June 30, 2021 is attached herewith.

At the said Meeting, the Board of Directors have also declared an interim dividend of Rs. 6/ per equity share (i.e. 60% on a face value of Rs. 10/- per share) for the Financial Year 2021- 22.

Also, kindly take note that the Board has fixed August 22, 2021 as the record date for the purpose of payment of interim dividend. The interim dividend will be paid by the Company on or before August 28, 2021.

The Board Meeting commenced at 10.30 A.M. and concluded at 1:10 P.M.

We request you to please take the same on record.

Thanking You,

Encl: As above

Chartered Accountants 7th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City Phase - II, Gurugram - 122 002, Haryana, India

Phone: +91 124 679 2000 Fax: +91 124 679 2012

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

To The Board of Directors of Dr. Lal PathLabs Limited

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of Dr. Lal PathLabs Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter ended 30 June, 2021 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. The Statement includes the results of the entities listed in Annexure A
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above and nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

1. The consolidated unaudited financial results includes the interim financial information/ financial results of four subsidiaries which have not been reviewed by their auditors, whose interim financial information/ financial results reflect total revenue of Rs. 50 million for the quarter ended 30 June, 2021, total loss after tax of Rs. 1 million for the quarter ended 30 June, 2021 and total comprehensive loss of Rs. 1 million for the quarter ended 30 June, 2021 respectively, as considered in the Statement. According to the information and explanations given to us by the Management, these interim financial information/ financial results are not material to the Group.

Our Conclusion on the Statement is not modified in respect of our reliance on the interim financial information/ financial results certified by the Management.

For Deloitte Haskins & Sells LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Jitendra Agarwal Partner (Membership No. 87104) (UDIN: 21087104AAAAEV1419)

Place: New Delhi Date: 30 July, 2021

Annexure A

List of entities consolidated

a) Parent Company: Dr. Lal PathLabs Limited

b) Subsidiaries held directly

S. No.	Name of the Entity
1	Paliwal Diagnostics Private Limited
2	Paliwal Medicare Private Limited
3	APL Institute of Clinical Laboratory & Research Private Limited
4	Dr. Lal PathLabs Nepal Private Limited
5	Dr. Lal PathLabs Bangladesh Pvt. Ltd.
6	Dr. Lal Ventures Private Limited
7	Pathlabs Unifiers Private Limited
8	Dr. Lal PathLabs Kenya Private Limited

c) Subsidiaries held indirectly

S. No.	Name of the Entity
1	Centrapath Labs Private Limited
2	APRL PathLabsPrivate Limited
3	Chanre Laboratory Private Limited (w.e.f 25 January, 2021)

Or. Lal PathLabs Limited

ti Z>. L .. t PtttU .. l.t CIN: L74899DL1995PLC065388 Regd. Office : Block E, Sector-18, Rohin l, New Deihl· 110085, New Oelhl

Corporate Offioe: 12th Floor, Tower 8, SAS Tower, Medidty, Sector·38, Gurgaon - 122 001, Haryana

Phone: + 91124 3016500 I Fu: +91124 4234468; Website: www.lalpathlabs.com; Email: cs@lalpathlabs.com

Statement of Consolidated Unaudited Flnancial Results for the quarter ended 30 June, 2021

					(Rs. In million except as stated)
	Partkulars	3 months "nded30 June, 2021	Preceding 3 monthsended31 March, 2021.	Corresponding Jmonths ended30 June, 2020	Previous yenr ended31 Marc h, 2021
			(See note Iv)
		( Unaudlt.,d )	(U naudited)	(Unaudited)	( Audited )
IncomeI
	(a) Revenue: from oPerat1ons	6,066	• .310	2,660	15,813
	(b) Other inc<>me	l•l	135	114	513
	Tota l Income	6,207	4 ,445	2,774	16, 326
2	Expenses
	(a) Cost or matenals consumed	l.451	1,033	759	3,973
	(b) Employee benefits e xpense	864	761	595	2,737
	(c) Finance costs	46	44	37	160
	(d) De:preoation and amorusat1on expense	192	203	179	772
	(e) Fees to collection centers/channel partners	921	585	293	2,043
	(f} Other e.penses	940	711	530	2,697
	ToQI expenses	4 , 414	3,337	2,393	12, 382
	3 Profit before til.x	1,793	1,108	381	3,944
4	Tax expenu
	(a) Current tax	521	256	121	1,021
	(b) oererred tax	(65)	l	(24)	(42)
	Total tax expense	456	257	97	979
	5 Profit for the period (A)	1,337	851	284	2 ,965
	6 Other comprehensive. Income
	Hems that will not be reclasslned to profit or loss-Remeasurement of the defined benefitobhgatlons	(2)	( 10)	( 12)	(9)
	-Income tax In relation to the items that will notbe re <lass1tled loss<="" or="" profit="" td="" to="">l2)2	l	2	)	2
	llems that may be reclassified to profit or Joss00Exchange dfffere.nc.es on translauon ot fo-e1onop.,,.,tions				(1)
	Tohll other comprehensive Income/ (loss) (B)	(1)	(8)	( 9 )	( 8 )
	7 Total comprehensive income (A+B)	1, 336	843	275	2,957
	Profit for the period attr-ibutable t o:
	Owners or the Company	1.312	834	284	2,916
	Non·contl'1)fling interest	25	17		49
		1,337	851	284	2 ,965
	Other comprehensive Income for the period
	attributable to:		(8)	(9)	(8)
	Owners or the Company	(1)
	Non·controllln9 interest	(1)	(8)	(9)	(8)
	Total comprehensive inciomtt f·or the period
	attrlbut:able to:
	Owners of the Company	l,lll	826	275	2,908
	Non-controtling Interest	25	17		•9
		1,336	843	275	2,957
	8 PaJd-up equity share cap1t4ll (Face value of Rs. 10per share)	833	833	833	833
	9 Other equity				ll,617
	10 Earnings per share (Rs.)(Face value or Rs. 10 per share)(not annualised)
	·Basic	15.87	10.10	3.45	35.33
	· Diluted	15.84	10.07	3.44	35.25

ż

Dr. Lei Pethubs Limited

The above consoltdatea '6Ults were rev ewed by the Aucf,t COmm1ttee ar>d •PP<O\led by the Boarn of Otreaors 1n their respective meebnqs ne•d on JO July, 2021 The l1m1tea re"'""• as requ1rea ur>der Regulat on JJ of the SE&! (Ust1"1f Obf,gaoons and D1sdosure Requirements) Regulations, 2015, t>as been completed by the StaMO<Y AUO.torS tor tne Quarter ended Ju,,. JO, 2021 and they have eJroressed an unmod1~ed condus1on on the aforesa d results

1. The above consohdated results reP<"eSent c:oosol1dated results cl the Company and Its subS1d1anes (together referred to es 'the Group").

• Ill. These financial results or the Group have been p.epare<l In accordance with the recognition and measurement pnnclples laid down In the lnd1ao Accounting Standard JA "Interim Flnanctal Reporting• ("Ind AS JA"). prescnbed unaer Section 133 or the Companies Aet, 2013 read with relevant rules issued thereunder ana Other accounting pnnoples generally accepted In 1na1a.
• Iv. Figures for the Quarter ended 31 March, 2021 are the balancing figures between the audited figures In respea of full flnanclal year and tne published year tQ date unaudited figures up to the third Quarter ended JI December, 2020, which were subjected to limited rev iew.
• v. The Board of Directorl ol the Parent Company have approved an interim dividend or INR 6 per equity share (face value or INR 10 each) at their meeung held on 30 July, 2021.
• vi The results or Quarter ended June 30, 2021 are not stnttly comparable with the results of the p<evlous quarter and CO<TespondJng prevJous quarter, due to resurgent wave ol COVJD ·19 1n quarter ended June 30, 2021 and na!lonw<de lod<down In the con-esoond1ng previous quarter
• v The Board of Directors ol the Parent Company and one ol the subsicllary company's "APl tnsmute al Oln•cal L..lbonltO<Y & Research Pnvate Um•ted" ( APl") Jn t"*• respectJve boara meetJ"lfS held on 3 February, 2020 had aPO<'O"ed the "Scheme ol AmatgamatJon" al f.Pl ""th the Parent Company w.e.f 1 Jlpnl, 2020 (the aPPOJnted date). AS per the sad SCheme tl'le unde<ta<1ng ol APl shall stand transferred to and vested •n the Company on a g01ng ccncem Dass ""'thavt any further aa. deed~ matter. The scheme ol amaloam11t•on is suDiect to a-1)val b'( the shareha4derl, ~•atJonal Company Law Tnbunal and o<her si.tutory •Dll<'OV•fs
• vo The &oaro of Directors, wn1cn has been 1dent1f,ed as being the chief operat1"1f dK1S1on mak.er (CODM), evaluates the Group"s per1onnance, allocates resources DaS4d on the analys<s of the vanous perfonnance 1nd•cators ol tne Group as • s11•gle unit. Theref0<e there 1s no re~able segment for the Grouo. 1n accordance w111> the reaulrements of lr>d1an Accounting Standard 108· 'Operabng Segments·, no<lfJed under the Companies (lndlan Accounting Standard) Rules, 2015.
• ••· The Indian Parliament has •PP<Oved the Code on Social Secuntv, 2020 ('the Code") which, Inter alla, deals wlth emplovee benefits dunng employment and POSt· employment. The Code hM been published In the Gazette of India. The eltect1ve date or the Code 1s yet to be notified. In view or this, the Group Is In the process ol assasslng the Impact of the relevant provisions.

.f\ 00 ~"'" """ 11'. "~~ • . :r\··~u .. """u Exec.uuve ~~O\a1rrnan "'U'

Place wrugram Date; 30 July, 2021

Chartered Accountants 7th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City Phase - II, Gurugram - 122 002, Haryana, India

Phone: +91 124 679 2000 Fax: +91 124 679 2012

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

To The Board of Directors of Dr. Lal PathLabs Limited

• 1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of Dr. Lal PathLabs Limited ("the Company"), for the quarter ended 30 June, 2021 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India (ICAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as stated in paragraph 3 above , nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Deloitte Haskins & Sells LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Jitendra Agarwal (Partner) (Membership No. 87104) (UDIN: 21087104AAAAEU6496)

Place: New Delhi Date: 30 July 2021

Dr . Lal Pathlabs Limited

II z:>.. <'LL ;z:>-4' .. CIN: L74899DL199SPLC06S388

Regd. Office : Block E, Sector-18, Rohlnl, New Delhi- 11008S, New Deihl

Corporate Office: 12th Floor, Tower 8, SAS Tower, Medlclty, Sector-38, Gurgaon - 122 001, Haryana

Phone: +91 124 3016SOO I Fax: +91 124 4234468; Website: www.lalpathlabs.com; Emall: cs@lalpathlabs.com

Statement ot Standalone Unaudited Financial Results for the quarter ended 30 June, 2021

	{Rs. in million except as stated)
	Particular s	3 m onths ended30 June, 2021	Preceding 3 m onthsended31 March, 2021	Corresponding 3months ended30 June, 2020	Previous year ended31 March, 2021
			(See note Ill)
		( Unaudited)	( Unaudited)	{Unaudited)	{ Audited}
1	Income
	(a) Revenue from operations	5,649	4,041	2,550	14,905
	(b) Other Income	135	131	111	513
	Total Income	S,784	4, 172	2,661	lS,418
2	Expenses
	(a) Cost or materials consumed	1,337	965	730	3,739
	(b) Employee benefits expense	808	712	563	2,574
	(c) Finance costs	44	39	35	148
	(d} Depreciation and amortlsallon expense	168	179	164	698
	(e) Fees to collection centers/channel partners	900	572	288	2,007
	(I) Other expenses	875	658	496	2,511
	Total expenses	4,132	3,12S	2,276	11,677
3	Profit before tax	l,6S2	1,047	38S	3,741
4	Tax expense
	(a) Current tax	490	244	119	985
	( b) Deferred tax	( 71)	16	(22)	(45}
	Total tax expense	419	260	9 7	940
5	Profit tor the period (A)	1, 233	787	288	2,801
6	Other comprehensive Income
	Items that will not be reclassified to profit or loss	(2)	(11)	(12.)	(9)
	·Remeasurement of the defined benefit obligations· Income tax In relat ion to the Items that will not bereclassified to profit or loss	l	3	3	2
	Total other comprehensive Income/Closs) ( 8 )	( 1 }	(8 )	( 9 )	{7)
7	Total comprehensive Income { A+B)	1,232	779	279	2,794
8	Paid-up e <iuity (face="" 10="" capital="" of="" per<br="" rs.="" share="" value="">share)	833	833	833	833
9	Other equity				11,338
	10 Earnings per share (Rs.)(Face value of Rs. 10 per share) {not annualised)
	·Basic	14.93	9.52	3.50	33.93
	·Diluted	14.89	9.50	3.49	33.85

	Dr. Lal PathLabs limited
Notes:
	;, The above results were reviewed by the Audit Committee ancs approved by the Soard of Olrectors In the.Ir respective meetings held on 30 Juty, 2021. The hmlte:d review, as requiredunder Re9ulatlon 33 or t he SE81 (Listing Obllgatlons and Oisclosure Requirements) Regulations, 2015, ha.s been completed by the Statutory Auditors for l lie quarter ended June 30,2021 and they have expressed an unmodified conduslon on the aforesaid results.
	IL These financial results have been prepared In accordance with the recognition and measurement principles laid down In the lndusn Accounting Standard 34 "Interim Financial Re.portm~f("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules Issued thereunder and other accounting principles 9e11erally accepted In India.
	111, Figures for the Quarter ended 31 March, 2021 are the balancing rigures between the audited figures in respect or full flnanclal year and the oublished year to date. unaudited figures uoto the third quarter ended 31 December, 2020, which were subjected to limited review.
	1v. The Board of Oirectol'S of the company have approved an interim dividend of tNR. 6 per equity share (face value of lNR 10 each) at their meeting heJd on 30 July, 2021.
	v. Ot,1rln9 the quarter ended 30 June, 2021, the Company has made a further Investment ot JNR. 45 mllllon In Its wholly owned subsidi1ry, PathLabs Unifiers F>rivate Umlted, throughsubscription of additional eQu1ty shares.
	vi. The results of quarter ended June JO, 2021 are not strictly comparable with the results of the previous quarter and corresponding previous Quan.er, due to resurgent wave of COVTO •19 in quarter ended lune 30, 2021 l!lnd nationwide lock.down In the corresponding previous quarter.
	vii. The Board of Directors In their meeting held on 3 February, 2020 had approved the •scheme of Amal9amat1on' of •APL lnstn;ute of Clinical Laboratory & Research Private Umlted•(.APL·) with the Company w.e.f. 1 Aprtl, 2020 (the appointed dat e). As per the said scheme the undertaking of APL shall stand transferred to and vested 1n the Company on a goingcone.em basis wltJiout any further act1 deed of matter. The scheme of amalgamation Is sub)ect to approval by the shareholders, National Company Law Tribunal and other statutoryapprovals.
	viii. The Board of Directors of the Company, which has been identified as belr' 9 the chief operating decl.slon maker (CODM), evaluates the Company's performance, allocates resourcesbased on the analysis of t he various performance lndtc.ators of the Company as a single unit. Therefore there is no reportable segment for the Company, In accordance wltll thereQvirements of lndlan Accovntl.ng Standard 108· ·oi:ieratlng S~mf!nts', notified under t he Companies {Indian Accounting Standard) Rules, 2015.
	he, The lndlan Parliamant has approved the Code on Social 5Murity, 2020 {'the Code') which, !nler alla, deals with emoloyee benefits during employment aind post-employment. The Code"!has been published In the Gazette of India, The effective date of the Code is vet lo be notl'1ed. In view of this, the Company Is in the process of assessing t he impact of the relevantprovisions.
	Pathlabs _,, '""' LimitDr.ed~"·
	" w'-1
	( Hony) Brig. Dr. Arvlnd LalPf ace: Gurugram
	Exe-cutlve ChairmanDate. 30 July, 2021