Vijaya Diagnostic Centre Limited, a leading diagnostic services provider, has reported strong financial results for the first quarter, demonstrating robust growth and expansion across its operations.

Financial Highlights

The company delivered consolidated revenue of Rs. 188.00 crores for the quarter, representing a significant year-on-year growth of 20.4%. This impressive performance was driven by a 17% increase in test volume and a 14% rise in patient footfall, along with favorable changes in the test mix.

Vijaya Diagnostic Centre maintained healthy profitability, achieving an EBITDA margin of 39.1% and a PAT (Profit After Tax) margin of 20.4%. These strong margins underscore the company's efficient operations and solid business model, especially noteworthy given the ongoing expansion efforts.

Market Performance and Expansion

The company's core market, Hyderabad, returned to double-digit growth this quarter, indicating strong brand loyalty and market share gains. This performance is particularly encouraging as it suggests Vijaya Diagnostic Centre is successfully competing against both organized and unorganized players in its home territory.

Expansion efforts continued apace, with the company commissioning five new hubs and one spoke during the quarter across Pune, Bangalore, and West Bengal. These new centers are showing promising early results, with management reporting steady footfall and encouraging numbers.

Operational Highlights

• Radiology services contributed 39% of the revenue mix, while pathology accounted for 61%.
• The wellness segment saw growth, contributing 14.2% to revenue compared to 13.5% in the previous year.
• The Nizamabad hub center achieved breakeven within two quarters of operations, demonstrating the efficiency of the company's expansion model.
• One Bangalore hub center is on track to reach breakeven earlier than the estimated 12-month timeline, indicating strong market acceptance in new geographies.

Financial Position and Future Plans

As of the quarter-end, Vijaya Diagnostic Centre maintained a strong financial position with a cash balance of Rs. 270.00 crores, including net cash of Rs. 220.00 crores after accounting for capital creditors.

Looking ahead, the company reaffirmed its plan to open 10 hubs in the current financial year. Management guided for CAPEX of Rs. 150.00-155.00 crores for new centers, with an additional 2-3% of topline allocated for replacement CAPEX.

Management Commentary

Sunil Reddy, Executive Director of Vijaya Diagnostic Centre, expressed optimism about the company's performance and expansion strategy. "We are encouraged by the positive reception our brand has received in newly operational hubs in new geographies. Our existing network continues to witness growing footfalls as Vijaya steadily gains market share driven by our integrated offering with a comprehensive portfolio under one roof," he stated during the earnings call.

The management believes the company is well-positioned to capitalize on the evolving diagnostic landscape, where increasing awareness is driving greater emphasis on brand, trust, quality, and wellness services.

As Vijaya Diagnostic Centre continues its expansion into new markets like Pune, Bangalore, and West Bengal, while maintaining strong growth in its core territories, the company appears poised for sustained growth in the coming quarters. The focus on integrated diagnostic services and strategic geographic expansion seems to be resonating well with patients, supporting the company's robust financial performance.

Vijaya Diagnostic Centre Limited (NSE: VIJAYA, BSE: 543350), one of India's leading integrated diagnostic chains, has reported strong financial performance for the first quarter, along with announcing significant expansion plans across key regions.

Financial Highlights

The company has posted impressive year-on-year growth in its Q1 results:

• Revenue from operations increased by 20.4% to Rs 1,880.50 crore
• EBITDA grew by 20.1% to Rs 735.30 crore, with an EBITDA margin of 39.1%
• Profit after tax (PAT) rose by 22.3% to Rs 383.40 crore, with a PAT margin of 20.4%

Operational Performance

Vijaya Diagnostic also showed strong operational metrics for Q1:

Expansion Plans

Ms. Suprita Reddy, MD & CEO of Vijaya Diagnostic Centre, announced ambitious expansion plans during the earnings call:

1. Near-Term Expansion: The company plans to launch 3 new hubs in Q2 across its core geography and West Bengal.

2. Medium-Term Growth: An additional 2 hubs are scheduled to commence operations in West Bengal by the second half of the fiscal year.

3. Existing Operations: All new hubs in Pune, Bengaluru, and West Bengal are now fully operational with steady footfall.

4. Break-Even Progress: The company remains optimistic about achieving break-even across all centers within 12 months, with one hub in Bengaluru on track to reach break-even earlier than estimated.

5. Recent Success: The Nizamabad hub center has achieved break-even within two quarters of full-fledged operations.

Management Commentary

Commenting on the results and future outlook, Ms. Suprita Reddy stated, "Vijaya reported another strong financial quarter, achieving a YOY growth of 20.4%, with our Hyderabad market's contribution returning to double-digit growth this quarter. The strong performance was largely driven by volume and change in the test mix."

She further added, "Looking ahead, we would be commissioning 3 hubs in Q2 across our Core Geography and West Bengal. The other 2 hubs in West Bengal are also on track to be operationalized in the 2nd half of the fiscal year."

Conclusion

Vijaya Diagnostic Centre's robust Q1 performance, coupled with its aggressive expansion plans, signals the company's strong growth trajectory and commitment to expanding its presence in key markets. As the company continues to focus on both organic growth and strategic expansion, investors and stakeholders will be keenly watching its progress in the coming quarters.