Vijaya Diagnostic Centre (VIJAYA) Q2 24/25 earnings summary

Executive summary

• Achieved 32% year-over-year revenue growth in Q2 FY25, with 23% organic growth, driven by increased test volumes and new center launches, marking eight consecutive quarters of exceeding growth guidance.

• Consolidated financials now include PH Diagnostic Centre, Pune, acquired in December 2023.

• Growth was primarily volume-driven, supported by both existing and new centers breaking even faster and maintaining a strong B2C share.

• Expansion included new hubs in Ongole and Nizamabad, and upgrades in Gurugram, with further plans for Pune, Kolkata, and entry into Bengaluru.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved by the Board on 7 November 2024.

Financial highlights

• Q2 FY25 consolidated revenue reached ₹18,294.82 lakhs, up 32% year-over-year and 17% quarter-on-quarter; H1 FY25 revenue was ₹33,920 lakhs, up 30.5% year-over-year.

• Q2 FY25 EBITDA was ₹760 million, up 33% year-over-year, with a margin of 41.5%; PAT for Q2 was ₹4,212.47 lakhs, with a PAT margin of 23%.

• H1 FY25 EBITDA was ₹1,372 million, margin at 40.5%; H1 FY25 PAT was ₹733 million, margin at 21.6%.

• Total tests in Q2 FY25: 3.95 million (30.5% YoY growth); revenue per test: ₹463; revenue per patient footfall: ₹1,619.

• Earnings per share (consolidated, basic) for Q2 FY25 was ₹4.09, up from ₹3.26 in Q2 FY24.

Outlook and guidance

• Confident of maintaining double-digit organic growth, targeting 15%-16% for the year, with continued focus on expanding into Tier II/III cities and strengthening presence in core markets.

• CapEx guidance of INR 200 crore for 10-12 new hubs over FY25 and FY26, funded through internal accruals.

• Expecting 40% EBITDA margin to be sustainable despite new center openings.

• New hubs outside core geographies expected to break even within three to four quarters.

• The Board approved a proposed Scheme of Amalgamation for Medinova Diagnostic Services Limited to merge into the company, subject to regulatory approvals.