homeearnings NewsDr Lal Pathlabs eyeing pre COVID margin of 26% and confident of achieving it soon too
Dr Lal Pathlabs eyeing pre-COVID margin of 26% and confident of achieving it soon too
The CEO's positive outlook and determination to achieve their targets bode well for Dr Lal PathLabs and its stakeholders. As the company continues to navigate the evolving healthcare landscape, its ability to adapt, innovate, and capitalise on emerging opportunities will play a vital role in realising its ambitions for growth and success in the future.
India's leading diagnostics chain Dr Lal PathLabs Ltd is targeting to get back to its pre-COVID margin level of 26 percent and it feels confident of achieving this goal soon too.
In an exclusive interview with CNBC-TV18, Bharath Uppiliappan, CEO of Dr Lal PathLabs, shared some encouraging insights about the company's performance and growth trajectory.
“From margin perspective, we have always said that we would like to get back to the pre-COVID margin level, which is about 26 percent, and we feel confident at this stage that we should be able to achieve that soon,” he said.
One of the key highlights of the conversation was the remarkable surge in non-COVID revenue, which witnessed an impressive rise of 9.7 percent.
“We grew the non-COVID revenue by 9.7 percent,” he said.
This indicates a promising trend for the company, signaling its ability to diversify its revenue streams beyond pandemic-related testing.
Additionally, Dr Lal PathLabs observed a commendable growth in non-COVID volumes, which saw an increase of 2.5 percent. This growth signifies a resurgence in demand for the company's tests and services outside the context of the COVID-19 pandemic.
Looking ahead, Uppiliappan is optimistic about the company's performance in the second half of the fiscal year 2023-2024, confidently stating that volumes are expected to rebound during this period. This foresight hints at positive market dynamics and an overall improvement in the healthcare industry's outlook.
The CEO also acknowledged the role of Swasthfit, an integral part of Dr Lal PathLabs' business strategy, for driving a significant improvement in realisation for the company.
This accomplishment underscores the importance of innovative healthcare solutions and how they contribute to both patient care and financial growth.
Interestingly, Uppiliappan disclosed that the company is actively exploring the potential of Swasthfit, aiming to achieve sales worth a staggering Rs 500 crore.
“We are looking at a Rs 500 crore kind of runrate for this product line which we built from scratch,” he said.
This ambitious sales target demonstrates the company's strong commitment to investing in and expanding its cutting-edge offerings.
While sharing the company's strategic plans for growth, Uppiliappan emphasised that they are diligently focused on the seamless integration of the Suburban acquisition, aiming to leverage its potential for mutual benefit. The company had acquired rival diagnostics chain Suburban Diagnostics in October, 2021.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM