Metropolis Healthcare confirms I-T department searches

CNBC-TV18 on Wednesday, November 16, citing sources, reported that the income tax department conducted a search action at the Metropolis Path Labs. Metropolis Healthcare has now confirmed the search at its premises. Reportedly, search operations covered several premises in Delhi, Mumbai, and Chennai. "I-T department has alleged Metropolis of unaccounted and concealed income and the top management, too, is under I-T scanner," the sources had said.

Metropolis Healthcare has said that the company will furnish all explanations and clarifications as desired by the income tax department. Metropolis has further clarified that the income tax department’s proceedings have no impact on the operational performance of the company.

On Friday, the stock of the diagnostic company fell 1.6 percent to Rs 1,409.4 in choppy trade. The shares of Metropolis Healthcare were trading 0.2 percent lower at Rs 1,429.7 on BSE at 11:04 am.

The price of Metropolis Healthcare shares has fallen 58.5 percent year-to-date and nearly 54.5 percent in the last year. The stock has fallen by 10.7 percent in the past week.

In the September quarter, Metropolis registered a fall in revenue and profit. The company's revenue declined by one percent from the previous year due to the underperforming core Western India market. Net profit also declined more than 30 percent from the year-ago period.

However, the company recorded its highest ever non-Covid revenue during the September quarter, which increased 16 percent to Rs 288 crore. The company's gross debt at the end of the quarter stood at Rs 138.4 crore, which it plans to repay by the next financial year.

Even as patient visits increased during the quarter, Metropolis could not generate the same revenue from those patients compared to the June quarter. Revenue per patient fell to Rs 942 from Rs 977 in the June quarter, despite patient visits increasing 13 percent.