Thyrocare Technologies Limited — Investor Presentation 2021

May 10, 2021

Thyrocare Technologies Limited Presentation – 08.05.2021

Disclaimer

This presentation is for information purposes only and it contains general background information about the Company's activities. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events, or otherwise. This Presentation comprises information given in summary form and does not purport to be complete. This Presentation should not be considered as a recommendation to any investor to purchase the equity shares of the Company. This Presentation includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future financial condition and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. The past performance is not indicative of future results. This document has not been and will not be reviewed or approved by the statutory auditors or a regulatory authority in India or by any stock exchange in India.

Key Highlights

Revenue↑19%` 474 Cr	EBITDAMarginsnormalized` 176 Cr	PATnormalized` 120 Cr	Margins25%
FreeCash` 109 CrAvailable	InvestigationsPerformed9.18 Crore	37%NovidSamplesProcessed1.58 Crore	COVID RTPCRProcessed10.4 Lac

Pathology revenue revived significantly after Q1

• Annual growth @ 18.6%
• Quarterly growth @ 48.6% (YOY) / Non (COVID) @ 30%
• Quarterly growth @ 5.3% (Sequentially)
• Wellness revenue constitutes 45% of the total Non COVID revenue for the year.
• The revival of the core business in the last quarter is slightly impacted due to surge of COVID cases in last part of the year.

Increase in COVID volume but with stringent price regulations

COVID	Q1	Q2	Q3	Q4
(INRCr)Revenue	2312	6547	2734	2020
Samples	84466,	276442,,	292321,,	391209,,
SamplePerRevenue	2740	1730	940	520

• Performed 3.91 lac COVID RTPCR tests in Q4 (highest since inception).
• Total 10.44 lac COVID RTPCR tests performed in the financial year.
• Delhi and Bangalore COVID RTPCR testing laboratories commenced operations.
• The net realization from COVID RTPCR declined substantially over the quarters due to stringent price regulations across all the states.

Recovered and sustained EBITDA margin in spite of Q1 COVID impact

Particulars	endedYear		endedYear
	31March		31March
	2021		2020
fromRevenueoperations	(Audited)27474		(Audited)40000
Less:Expenses
Costofmaterialsconsumed/traded	16055	33.9%	11234	28.1%
Employeebenefitsexpense	5499	11.6%	4575	11.4%
(excludingone offprovisions)
Otherexpenses	8469	17.9%	6922	17.3%
(excludingexpenses)non operating
EBITDA(Normalised)	17403	36.7%	17269	43.2%
Add:
OtherIncome	1228		1048
Less:
Employeebenefitsexpense	180		-
(oneoffprovisions)
Othernon operatingexpenses	149		598
Depreciationandamortisationexpense	2108		1954
Financecost	066		132
ExceptionalItems	-		3344
PBT	16128	34.0%	11200	28.0%
Taxexpense
Currenttax	(4425)		(4274)
Deferredtax	274		1006
PAT	11977	25.3%	7932	19.8%

• EBITDA margins impacted due to sharp fall in revenue in Q1 due to COVID lockdown.
• Recovery of business over next quarters has enabled to sustain the margin.
• Cost of consumables surged due to Cost of COVID RTPCR/ antibody reagents, Fall in revenue from wellness segment, Operating costs w/o to network during covid, Reduction in prices of tests/ profiles, Aggressive discounts to network
• Employees benefit expenses have increased due to increased head counts, better incentives to staff during COVID and increase in provisions.

Radiology revenue revived significantly despite COVID

Yearly Revenue	Centrewise Revenue (INR Cr)	FYE2021	CentrewiseScans	FYE2021
(in crore)	Navi Mumbai	3.0	MumbaiNavi	6522,
	Delhi	2.4	Delhi	2922,
	Hyderabad	2.9	Hyderabad	2496,
	Prabhadevi	3.1	Prabhadevi	7582,
	Aurangabad	1.5	Aurangabad	1033,
31.518.5	Jaipur	2.3	Jaipur	5821,
	Nashik	2.3	Nashik	1623,
FYE2020FYE2021	Borivali	0.2	Borivali	200
Imaging	Bangalore	0.8	Bangalore	745
		18.5		16011,

• Despite surge in COVID cases in the last quarter all centers continued operations with increased footfalls.
• Borivali center commenced operations in the current quarter, after shifting of the equipment from Coimbatore.
• Jaipur business undertaking is disposed off as is where is, at the last date of the financial year.

Breakeven at EBITDA in spite of Q1 COVID impact

Particulars	endedYear		endedYear
	March31		March31
	2021		2020
fromRevenueoperations	2041		3409
Less:Expenses
Costofmaterialsconsumed/traded	335	0.7%	475	1.2%
Employeebenefitsexpense	129	0.3%	316	0.8%
Otherexpenses	1566	3.3%	2112	5.3%
(excludingexpenses)operatingnon
(Normalised)EBITDA	011	0.0%	506	1.3%
Add:
OtherIncome	202		061
Less:
andDepreciationamortisationexpense	942		1261
Financecost	531		294
ExceptionalItems
BeforeLossTax	(882)	-1.9%	(988)	-2.5%
Taxexpense
Currenttax	-		-
Deferredtax	219		(817)
AfterLossTax	(663)	-1.4%	(1805)	-4.5%

• Breakeven at EBITDA despite operations severally impacted due to complete closure of some centers in Q1 due to COVID lockdown.
• Recovery of business over next quarters has enabled to reduce losses, coupled with relocation of assets has reduced overheads.
• Cost of consumables and employee benefit expenses are controlled by shifting scanners on franchisee arrangement.
• Profit from sale of business undertaking at Jaipur was reported as other income.

Consolidated financials of the group is not significantly impacted

Particulars	endedYear		endedYear
	March31		March31
	2021		2020
fromRevenueoperations	49462		43320
Less:Expenses
ofmaterialsconsumed/tradedCost	16390	34.6%	11709	29.3%
Employeebenefitsexpense	5627	11.9%	4892	12.2%
(excludingoffprovisions)one
Otherexpenses	9990	21.1%	8869	22.2%
(excludingexpenses)operatingnon
(Normalised)EBITDA	55174	36.8%	50178	44.6%
Add:
OtherIncome	1243		773
Shareofprofit/(loss)ofassociate	(007)		510
Less:
Employeebenefitsexpense	180		-
(oneoffprovisions)
Otheroperatingnonexpenses	501		598
andDepreciationamortisationexpense	3028		3191
Financecost	087		185
ExceptionalItems	-		586
PBT	15246	32.1%	14042	35.1%
Taxexpense
Currenttax	(4425)		(4275)
Deferredtax	493		(926)
PAT	11314	23.9%	8841	22.1%

• EBITDA margins of group were impacted due to sharp fall in revenue in Q1 due to COVID lockdown.
• Recovery of both pathology and radiology business over next quarters has enabled to sustain the margin.
• Cost of consumables in pathology segment surged due to –

Cost of COVID RTPCR/ antibody reagents, Fall in revenue from wellness segment, Operating costs w/o to network during covid, Reduction in prices of tests/ profiles, Aggressive discounts to network

• Employees benefit expenses in pathology segment have increased due to increased head counts, better incentives to staff during COVID and increase in provisions..
• Profit from sale of business undertaking at Jaipur was reported as other income.