Krsnaa Diagnostics Limited - Investor Presentation 2021

0 Krsnad D I A G N O ST I CS'' LET'S DO GOOD ... •

Date: 11[th ] October, 2021

BSE Limited Corporate Service Department, p[t ] Floor, P. J. Towers, Dalal Street, Mumbai 400 001

The National Stock Exchange of India Limited

Exchange Plaza, 3[rd ] Floor, Plot No. C/1, 'G' Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

Scrip ID: KRSNAA Scrip Code: 543328

Symbol: KRSNAA

Dear Sir / Madam,

Subject: H 1FY2022 Earnings Presentation

Pursuant to the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith a Earnings Presentation for on Unaudited Financial Results of the Company for the period ended on 3o[t1][1 ] September, 2021.

Request you to take the same on your records.

Thanking you, Yours sincerely,

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For Krsnaa Diagnostics Limited
Pawan Daga l}�vl, PUNE
Chief Financial Officer
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020 29780210 / 11 / 12 I [email protected] CIN : U74900PN2010PLC138068 S.No. 243/A, Hissa No. 6, CTS No. 4519, 4519/1, Near Cbinl=DYl-' ci.2ta1;ion, Krsnaa Diagnostics Ltd. (Formerly known as Krsnaa Diagnostics Pvt. Ltd.) Chinchwad, Taluka - Haveli, Pune, MH - 411019 (lndia)Nt:.W �IN: L74900PN2010PLC1380bo

w w w. k rs n a ad i agnostics.com I� I t!I I Hi I mi In

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H1 FY2022 Earnings Presentation

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One of INDIA’S LARGEST Differentiated Diagnostic Service Provider

www.krsnaadiagnostics.com

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Business Overview

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Krsnaa Diagnostics at a Glance

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Fastest growing and differentiated diagnostic service provider in India

2011 Aug-21 1,800+ Incorporated Listing at BSE Diagnostics and NSE Centre

14 States 23 Million Presence in India Patients Served Since Inception

Krsnaa Diagnostics is one of the fastest growing and differentiated diagnostic service provider with services including radiology, pathology and tele-radiology

Provides quality and inclusive diagnostic services at disruptive rates across various segments with a focus on Public Private Partnership model

One of India’s largest tele-radiology reporting hubs in Pune with capability to scale process of X-rays, CT scans and MRI scans and serves patients in remote locations

Workforce comprises of 186 radiologists, 33 pathologists, 7 microbiologists and over 2,700 qualified professionals including clinicians, technicians and operators

Rs. 396 Cr | 53% FY21 Revenue and Y-o-Y Growth

Rs. 95 Cr | 24% FY21 EBITDA and Margins

89% Avg. EBITDA to Cash Flow Conversion FY18-21

64% Revenue Growth CAGR FY18-21

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Krsnaa Diagnostics Edge

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One of the fastest growing diagnostic service provider in the country. Total Centre count increased at a CAGR of 39% from 682 in FY18 to 1,803 in FY21

Extensive footprint and infrastructure across India with presence in 14 States. Diagnostic equipment is state-of-the-art and procured from leading OEMs

Strong brand equity and well positioned to partner with the Government’s initiative to provide equitable, affordable and quality health care services

Scalable and agile business model. PPP is an asset light model which ensures robust revenue and long-term contract provides revenue visibility

Disruptive pricing and ability to maintain cost competitiveness underpinned by leading volumes, higher economies of scale and optimize cost structure

Defined strategy to deliver sustainable long-term growth

1. Fastest Growing Diagnostic Chain In India

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Fastest growing diagnostic chain in India, offering high quality services at disruptive prices

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Started operating 12 Pan India
Expansion
centres in Himachal Expansion Successful
Centres – 1,300+ Listing on the
Pradesh in public Centres – 664
States – 13 Stock Exchanges
private partnership States – 12
2018 August 16,
2013 2020
2021
2011 2017 2019 2021
Expanded Expanded strategic Expansion
Incorporated the
footprint tie-up with Private
Company with two Centres – 1,800+
radiology centers Centres – 50 Hospital States – 14
States – 4 Private Centres – 14
Won contract for
Punjab Radiology
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2. Extensive Footprint and Infrastructure

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Radiology Centres Pathology Labs
128 44
CT Scans and MRI Processing Labs
1,242
443
X-Ray Tele-Reporting
Collection Centres
Centres
487
1,370
Pathology Centres
Radiology Centres
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2. Leading Radiology and Pathology Diagnostic Service Provider

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Krsnaa Diagnostics offers complete range of tests including 1,394 radiology tests and 2,544 pathological tests

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Radiology Segment Pathology Segment
Rs. 1,619 mn | 41% Rs. 2,346 mn | 59%
1,365 | 75% 465 | 25%
Radiology FY21 Revenue Pathology FY21 Revenue
Radiology Labs and Mix and Contribution Pathology Labs and Mix and Contribution
FY21
3.06 mn 2.10 mn
Revenue
Customers Served in Mix Customers Served in
FY21 FY21
5.4 mn
4,79,000+ 1,45,000+ 2.4+ mn 0.9 mn
Non-Covid Tests
CT Scans MRI Scans X-Rays Covid Tests Conducted
Conducted
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Note: Pathology segment is including Covid-19 revenues

3. Public Private Partnership – Industry Dynamics

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Diagnostic industry is underpenetrated in rural areas. Higher Government spend and initiatives is expected to drive PPP model faster than the overall diagnostic industry

PPP Model is Backed by Government Initiatives

Rising prevalence of central schemes like Ayushman Bharat, is expected boost the PPP model in the diagnostic industry
Increasing government spend with healthcare budget expected to grow from INR 627bn in FY20 to INR 713bn in FY22
Government or government-sponsored schemes account for 73% of health insurance coverage provided
Around 25,000+ public hospitals in India, aiming to improve quality of healthcare services and expand reach of essential diagnostic services
Reduce high out-of-pocket expenditure incurred by patients and at the same time also enhance penetration of quality services at remote and underpenetrated locations
70% of the diagnostic facilities are concentrated in large cities across the country. Government establishments are encouraging private health care companies to provide affordable diagnostic services under PPP model and expand outreach in rural areas

Availability Accessibility Key Drivers Affordability Acceptability

Acceptability

Government Hospitals invite open bids to operate diagnostic centre at their hospitals and prefers high quality service provider with lower rates as compared to market

Engagement Term ranges between 2 years and 10 years and includes renewal clause subject to performance and mutual agreement

Contract sets out details of Equipment, Personnel, Infrastructure, Quality Checks and Payment Mode in detail

Space for diagnostic centre is provided by public health agency within existing medical facility at no additional charge

Diagnostic service provider need to invest and set up Radiology and Pathology labs as per the contract requirement

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4. Public Private Partnership Model Poised to Grow

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Krsnaa Diagnostic is the Partner for Public Health Agencies

Track Record of Faster Expansion and Penetration in India

1,797 dedicated centres under PPP Model across 14 states
▪ 1,797 dedicated centres under PPP Model across 13 states
▪▪ Scalable and agile business model with 100% qualification rate on 100% qualification rate on technical grounds and bid-win rate of 77.6% technical grounds and bid-win rate of 77.6%
▪ Annual Price Escalation is generally a part of PPP contracts
▪▪ Annual price escalation in the range of 2-5%, No bad debts so far under any PPP Contract is generally a part of PPP contracts
▪ Revenue model ?
▪▪ Efficient working capital management and no bad debts 67% contribution to FY21 Revenues and xx% contribution to EBITDAtill date under any PPP contract
67% contribution to FY21 Revenues
Monthly invoices are sent to government agencies and receivables days ranges between 60-90 days
Higher chances of renewal at the end of contracts expiry due to well established infrastructure

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Track Record of High Quality
Strong Execution Diagnostic Services
Infrastructure to
Process Large Competitive Prices
Volumes
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Centers
39%
CAGR 1,783
1,311
1,222
670
FY18 FY19 FY20 FY21
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Revenue (Rs. Mn)
67%
CAGR
2,676
1,884
1,507
578
FY18 FY19 FY20 FY21
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4. Partnership with Private Hospitals

Strategic Tie-ups with Private Health Players

Krsnaa Diagnostic is selectively entering into strategic tie-ups with leading Private Health Players
26 centres under Private Model across 2 states
33% contribution to FY21 Revenues
Krsnaa continues to offer disruptive prices however the prices are slightly higher than prices under PPP model

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Private Centres Drives Brand Visibility and Brand Recall

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Centers
19%
CAGR
20
17
14
12
FY18 FY19 FY20 FY21
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Revenue sharing model in the range of 20-30%
Private Hospitals benefits from the Krsnaa Diagnostics high quality infrastructure, accurate diagnosis and quicker turnaround of reports capitalizing on tele-radiology reporting hub

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Revenue (Rs. Mn)
58%
CAGR
1,289
700
585
328
FY18 FY19 FY20 FY21
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4. India’s Largest Tele-Radiology Reporting Hub

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Krsnaa Diagnostics hub and spoke model radiology facility in Pune is fully capable to process large volumes

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Patient
Report delivered to Entry
patient
Prescribed
Study
HUB authorizes and
send report to centre Scan images
Radiologist examine
sent to HUB
images and prepare
report
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Scalable business model and enables wider penetration into tier II and tier III cities
Analog images gets converted into digital format and sent to hub for examining and preparing report. Addresses the shortage of fulltime doctors and staff in the diagnostics industry
Experienced team of radiologists and lab technicians
Stringent quality control checks to ensure highest reporting standards coupled and accurate diagnosis
Krsnaa Diagnostics organizes regular training session to enhance skills of the workforce and keep them apprised of the latest technological advancement in the field of diagnostics
Sufficient capacity to process large volumes in the coming years

24x7 4,578 Sq.ft. 190 Uninterrupted Team of in-house teleconnectivity between Well designed facility at reporting radiologists diagnostic centres and Pune from India and abroad the hub

Test Monthly Capacity FY21 Annual Volumes	Headroom
CT Scans 126,000 4,79,233	3.2x
MRIs 31,500 1,45,116	2.6x
X-Rays 1,500,000 24,29,683	7.4x

5. High Quality Diagnostic Services at Disruptive Prices

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Krsnaa offers radiology tests at 45%-60% lower and pathology tests at 40%-80% lower than market rates

	Krsnaa % from min price 2,000 (43%) 3,500 (50%) 146 (27%) 26 (63%) 216 (57%) 595 (52%) 243 (76%) 141 (65%)
Segment Test Player 1 Player 2 Player 3
RDL CT Brain 4,500 4,500 3,500
RDL MRI Brain 8,000 8,250 7,000
PTH CBC 250 250 200
PTH Blood Sugar 85 80 70
PTH Thyroid 500 550 550
PTH Vitamin D 1,500 1,250 1,450
PTH Vitamin B12 1,000 1,100 1,300
PTH HbA1C 550 440 400

“Krsnaa Diagnostics offers high quality diagnostics services at disruptive prices. Despite lower prices, the company has delivered one of the highest OPBDIT margins in FY20 driven by its efficient operating cost structure.”

Delivered Highest Test volume - CAGR FY18-20

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41%
17%
11%
8%
Dr. Lal Metropolis Thyrocare
Player X Player Y Player Z
Path Labs
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OPBDIT Margins in FY2020

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40%
35%
26% 25%
Thyrocare Dr. Lal Metropolis
Player Z Player X Player Y
Path Labs
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Note:

• OPBDIT for comparative purposes is calculated as EBITDA divided by Revenue less Discounts and Expenses related to Fees to Hospitals and Others

6. Defined Strategy to Deliver Sustainable Long Term Growth

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Continue to Expand Presence across India

Expand Diagnostic Services with Focus on Specialized Diagnostics

Disciplined Acquisition to Expand Geographical Footprint

Expand network within India, particularly in current geographies by leveraging experience of deploying and operating diagnostic centres

Focus on private sector across both B2B and B2C segment by partnering with private healthcare providers, establishing standalone centres

Enhance capabilities in specialized diagnostics like molecular and genomics

Create additional infrastructure at radiology centres to offer pathology services as well

Provide healthcare screening, chronic and lifestyle disease management services

Pursue selective acquisitions and strategic alliances that provide access to technology, specialized services, market share and geographical reach

Execute bolt-on acquisitions and expedite post-acquisition integration 3

Grow Digital Footprint

Continue to Improve Profitability and Efficiency

Maintain High Social Impact

Increase touch points and engagement through online initiatives Leverage data analytics capabilities by creating intelligent dashboard Implement artificial intelligence and machine learning

Rationalizing costs by exploring vendor financing, sources other than traditional banks such as multilateral agencies and sovereign funds, off-balance sheet funding arrangement Increase efficiency by upgrading equipment & technology, negotiating competitive rates for equipment and reagents 5

Establish centres that will provide diagnostic services at no charge or at subsidized rates to patients from lower income group through government schemes, to promote compliance with UN’s SDGs

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H1 FY2022 Performance Update

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H1 FY2022 Performance Highlights

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Krsnaa Diagnostics delivers stellar performance with Revenues of Rs. 241 Cr and EBITDA of Rs. 74 Cr with margins of 30.9% in H1 FY22 The growth was primarily driven by higher contribution from Core Business

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Rs. 2,407 Mn Rs. 744 Mn 30.9 % Core Business of Radiology and Pathology
+143%
YoY
+18.8% y-o-y +75.5% y-o-y +1,000 bps y-o-y
2,121
EBITDA
Revenues EBITDA Margins
873
H1FY21 H1FY22
Covid-19 Business
1.84 Mn 5.31 Mn 50% : 39% (75)%
YoY
+70.6% y-o-y +145.3% y-o-y 1,154
Radiology : Pathology
Radiology Test Pathology Test Revenue Mix [1]
286
H1FY21 H1FY22
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Notes:

EBITDA is excluding CSR and ESOP expenses
Revenue mix is excluding Covid-19 business which contributed 11% to the Revenues

H1 FY2022 Performance Highlights

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Revenue up by 19%, EBITDA[1] up by 76% and PAT without CCPS[2] is up by 167% Core business drives strong growth while Covid-19 contribution continues to decline

Revenues up by 19%, primarily driven by growth in core business i.e Radiology and Pathology which registered a Revenue increase of 143% y-o-y, which was partially offset by decline of 75% in Covid-19 revenues
Core business contribution was 89% whereas Covid-19 business contributed 11% to the total revenues in H1 FY22
Operating EBITDA[1] increased by 76% to Rs. 74 crore and margins improved significantly to 30.9% as compared to 20.9% in H1 FY21. The EBITDA margin improvement was underpinned by higher number of tests and contribution from core business

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11%
H1 FY22
Revenue 50%
Mix
39%
Radiology Pathology Covid-19
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Profit After Tax without CCPS[2] was Rs. 34 crore with margins of 13.8%
Total number of 7.81 mn tests were conducted in H1 FY22 registering a significant increase of 104% on a y-o-y basis
The core business i.e. Radiology and Pathology ex Covid-19 both registered an increase in average revenue per test however, Covid-19 test prices saw a significant decline as compared to the last year due to price capping announced by the government
The Company has also repaid Total Debt of Rs. 178 crore in H1FY22 and have utilized Rs. 143 crore out of the IPO proceeds of Rs. 146 crore outlined for debt repayment
The Company has net cash position of Rs. 326 crores at the end of September 2021

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8%
24%
7.81 mn
H1 FY22
Tests Mix
68%
Radiology Pathology Covid-19
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Notes:

EBITDA is excluding CSR and ESOP expenses
Net Profit growth is calculated without Gain and Loss arising from Compulsorily Convertible Preference Shares (CCPS)

Recent Developments

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Krsnaa Diagnostics has recently won 5 PPP and private contracts to commission 29 CT Scanners and 8 MRI machines

Punjab Radiology contract

Punjab Government will allocate vacant space to establish diagnostic centres
Required to establish centres in 24 Government hospitals in Punjab with the deployment of 23 CT scanners and 6 MRI machines
Also bid to establish pathology diagnostic centres

Himachal Pradesh Radiology contract

2 ▪ Hospitals in Solan and Bilaspur will provide for vacant space within the hospital premises for establishing diagnostic centers
- Required to establish a CT scan centre each, in a government hospital located in Solan and Bilaspur respectively
Contract has an escrow arrangement under which, in the event any payments are delayed by more than 15 days, payments are released directly from the escrow account

Karnataka Radiology contract

Hospitals in Ramanagara and Udupi will provide for vacant space and other utilities within the hospital premises
Required to setup one spiral CT scan centre in a hospital located in Ramanagara district and one MRI centre in a hospital located in Udupi

Maharashtra MCGM contract

MCGM hospitals will provide space within the hospital and utilities on which diagnostic centres can be established
Required to establish a CT scan centre at Pandit Madan Mohan Malviya Shatabdi Municipal General Hospital, Govandi; an MRI and CT scan centre at Rajawadi Hospital, Ghatkopar; a CT scan centre at Bhabha Hospital, Kurla

KJ Somaiya Hospital – Mumbai Private Radiology

Establishing, management and maintenance of a diagnostic centre at K.J. Somaiya Hospital & Research Center Sion

Management Perspective

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Commenting on the results, Mr. Yash Mutha, Executive Director, said:

“The year 2021 marks a significant milestone for Krsnaa Diagnostics in its growth story, as the company went public in August 2021. I would like to thank all our employees, partners and shareholders who have showed confidence in our business model and joined us in fulfilling our mission ‘To make a difference in the healthcare diagnostic industry’.

The Covid-19 crisis has further highlighted the need for building a high-quality healthcare infrastructure in the country. The dedicated focus from the government and healthcare service providers is required to provide affordable and accessible healthcare to every corner and section of the society. With this in mind, Krsnaa Diagnostics remains fully committed in

expanding its footprint under the Public Private Partnership model to provide quality, inclusive diagnostic services at competitive rates and remain one of the fastest growing diagnostic chain in India. In the last 3 years (FY18-21), our total centre count has increased at a CAGR of 39% from 682 in FY18 to 1,803 in FY21, and during the same period our revenues grew at a CAGR of 64%.

I am also pleased to report that Krsnaa Diagnostics has continued its momentum from the last year and delivered a strong performance in H1 FY22. The company registered revenues of Rs. 241 crore, an increase of 19% y-o-y and the growth was driven by our core businesses i.e. radiology and pathology. These businesses registered a revenue increase of 143% y-o-y, which was partially offset by a decline of 75% during Covid-19. This is a reflection of our strong fundamentals that have grown the core business and will continue to drive further growth in this postCovid world. Our operating EBITDA was Rs. 74 crore and margins improved significantly to 30.9% as compared to 20.9% in H1 FY21. The EBITDA margin improvement was underpinned by higher number of tests and contribution from our core businesses. From a balance sheet perspective, the company continues to strengthen its capital structure and has repaid a total debt of Rs. 178 crore in H1 FY22. We have utilized Rs. 143 crore out of the total IPO proceeds of Rs.146 crore in line with our stated objective of debt reduction, and remaining amount is funded by internal accruals. In the last six months, we have won 5 PPP and private contracts to commission 29 CT scanners and 8 MRI machines in the states of Punjab, Himachal Pradesh, Karnataka and Maharashtra.

Looking ahead, Krsnaa Diagnostics remains confident to further expand its geographical footprint and penetrate deeper into the tier II and II cities under the PPP business model by offering competitive prices while maintaining quality diagnostic services. Furthermore, our hub and spoke model radiology facility in Pune is fully capable to process large volumes and will continue to allow us to maintain strong margins and profitability. With a clear strategic direction in mind, we look forward to delivering sustainable growth and creating maximum value for all stakeholders in the coming years.”

Note: EBITDA is excluding CSR and ESOP expenses

Revenue and Segment Mix

19% Y-o-Y

Revenue from Operations

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2,407
2,027
1,502
1,325
1,083
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Segment Tests Mix (In Mn)

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0.66
13%
5.31
0.12
0.54 0.58 145%
0.50 3.05
2.27 2.17
1.68
71% 1.84
0.62 0.79 1.05 1.08
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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Revenue from Operations Breakdown

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286
(75)%
929
1,154
237
921 50 192%
506 423
318
1,192
242 115%
582 610 556
339
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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Segment Revenue Mix

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5%
11%
18%
39%
61% 57% 39%
38%
16%
16% 56%
44% 50%
23% 27%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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Note:

• YoY Growth is for H1FY22 compared against H1FY21

Profitability and Margins

61% Y-o-Y

Gross Profits and Margins

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1,492
925
819
721 673
61.8% 62.1% 62.0%
48.0% 45.6%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Profit Before Tax and without CCPS

163% Y-o-Y

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453
305
286
166 172
19.9% 21.1% 18.3%
14.9% 8.2%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Notes:

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EBITDA and Margins 76% Y-o-Y

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744
431 420 424
324
28.7% 31.7% 29.9% 30.9%
20.9%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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PAT without CCPS

167% Y-o-Y

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341
226 216
125 128
14.7% 15.9% 13.8%
11.2% 6.1%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Gross Profit Margins and EBITDA margins are calculated on Revenue from Operations
• EBITDA is excluding CSR and ESOP expenses
YoY Growth is for H1FY22 compared against H1FY21

Operational Performance Trend

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Core Business i.e Radiology and Pathology saw an increase in both, Number of Tests and Average Revenue Per Test in H1FY22 Decline in average revenue per patient and per test in H1 FY22 is due to significant decline in the prices of Covid-19 tests

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Number of Patient (in Mn) 70% Y-o-Y
3.69
2.17
1.88 1.81
1.44
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Number of Tests (in Mn) 104% Y-o-Y
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7.81
4.21
3.59 3.82
2.79
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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(30)% Y-o-Y

Average Revenue Per Patient (in Rs)

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1,043
934
705
652
598
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Average Revenue Per Test (in Rs) (42)% Y-o-Y

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538 530
369
308
257
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
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Notes:

Average Revenue Per Test is calculated on Net Revenue (excluding Discounts)
• YoY Growth is for H1FY22 compared against H1FY21

Operational Performance Trend

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Radiology and Pathology saw significant increase in both, Number of Tests and Average Revenue Per Test in H1FY22

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Number of Tests (in Mn)Number of Tests (in Mn) 104% Y-o-Y
0.66
5.31
0.12
0.58
0.54
0.50 3.05
2.17
2.27
1.68
1.84
0.62 0.79 1.05 1.08
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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Average Revenue Per Test (in Rs)

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1,860 1,980
440
434
411
223
175
144 139 147
737
548 584 516 650
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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Note:

• Average Revenue Per Test of each segment is calculated on Net Revenue (excluding Discounts)

Segment Performance Trend

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Key Growth Drivers - Radiology and Pathology saw increase in its Revenue share with Covid-19 on a declining trend

Tests Mix (Radiology, Pathology and Covid)

Segment Revenue Mix

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3%
8%
18% 15% 15%
72%
57% 68%
60% 63%
28%
22% 22% 25% 24%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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5%
11%
18%
39%
57%
61% 39%
38%
16%
16%
56%
50%
44%
27%
23%
Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22
Radiology Pathology COVID
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Strengthening Balance Sheet

(Rs. Million)	FY19	FY20	FY21	H1 FY22
Long Term Debt	920	1,227	1,680	362
Short Term Debt	772	1,085	638	176
Total Debt	1,692	2,312	2,318	538
(-) Cash & Cash Equivalents	1,116	1,273	1,529	3,797
Net Debt / (Net Cash)	576	1,040	789	(3,259)
Total Equity	(849)	(1,970)	2,319	6,449
Net Debt/Equity	NM	NM	0.34 x	(0.51)x

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Receivables Days EBITDA to Cash Flow Conversion
108%
98 101% 98%
87
81
67
60%
FY19 FY20 FY21 H1FY22 FY19 FY20 FY21 H1FY22
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Krsnaa Diagnostics continues to strengthen its balance sheet with strong cash flow generation
Repaid Total Debt of Rs. 1,779 Mn in H1FY22 by utilizing Rs. 1,428 Million out of IPO proceeds of Rs. 1,461 Mn outlined for debt repayment
Capex of Rs. 530 Mn was incurred during the period towards setting up new diagnostics centre
Efficient working capital management ensured Receivable Days are in the range of 70-90 days

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Interest Coverage Ratio
4.2x
2.6x
1.9x 1.8x
FY19 FY20 FY21 H1FY22
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Financial Performance

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Q2 Y-o-Y	Q1 Q-o-Q	Six Months Y-o-Y
Particulars (in Mn) FY2022 FY2021 Growth (%)	FY2022 Growth (%)	FY2022 FY2021 Growth (%)
Core Business Revenues 1,033 581 77.9% Covid-19 Revenues 50 921 (94.6)% Revenue from Operations 1,083 1,502 *(27.9)%* Other Income 32 35 (8.6)%	1,088 (5.0)% 237 (79.1)% 1,325 *(18.3)%* 32 (0.3)%	2,121 873 142.9% 286 1,154 (75.2)% 2,407 2,027 *18.8%* 65 65 (1.0)%
Total Income 1,115 1,537 *(27.5)%*	1,357 *(17.8)%*	2,472 2,092 *18.2%*
Cost of Material Consumed 136 377 (63.9)% Fees to Hospitals and Others 274 404 (32.2)% Employee Expenses 125 82 53.0% Other Expenses 224 208 7.8%	223 (39.0)% 283 (3.2)% 120 4.0% 278 (19.7)%	358 522 (31.4)% 557 579 (3.8)% 245 136 80.5% 502 365 37.5%
EBITDA 324 431 *(24.9)%*	420 *(22.9)%*	744 424 *75.5%*
*Margin (%)* *29.9%* *28.7%*	*31.7%*	*30.9%* *20.9%*
EBIT 248 369 (32.7)% Margin (%) 22.3% 24.0%	348 (28.6)% 25.6%	596 305 95.6% 24.1% 14.6%
PAT without CCPS 125 226 *(44.6)%*	216 *(42.0)%*	341 128 *167.4%*
*Margin (%)* *11.2%* *14.7%*	*15.9%*	*13.8%* *6.1%*
Profit/Loss on fair value movement of CCPS - - -	- -	- 2,528 (100.0)%
Reported Profit After Tax 125 226 *(44.6)%*	216 *(42.0)%*	341 1,662 *(79.5)%*
Margin *11.2%* *14.7%*	*15.9%*	*13.8%* *36.0%*

Notes:

EBITDA Margins are calculated on Revenue from Operations

• EBITDA is excluding CSR and ESOP expenses

Annual Performance Trend

64% CAGR

Revenue from Operations

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3,965
2,584
2,092
906
FY18 FY19 FY20 FY21
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EBITDA and MarginsRevenue from Operations 48% CAGR

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953
628
579
32.2%
24.3% 24.0%
292
27.7%
FY18 FY19 FY20 FY21
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42% CAGR

Gross Profits and Margins

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2,045
1,552
1,296
51.6%
721 61.9% 60.0%
79.6%
FY18 FY19 FY20 FY21
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99% CAGR

Profit Before Exceptional Items and CCPS

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427
178 187
10.4%
8.3% 6.9%
54
5.9%
FY18 FY19 FY20 FY21
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Note:

EBITDA is excluding CSR and ESOP expenses
EBITDA Margins are calculated on Revenue from Operations

Contact Information

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This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Krsnaa Diagnostics’ future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.

Krsnaa Diagnostics undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances

For further information please contact: