Metropolis Healthcare Q3 Results: Growth Driven by Volumes
The latest financial report for Metropolis Healthcare shows promising growth. The company saw an 11% year-on-year (YoY) increase in overall sales, reaching ₹3.2 billion. This growth was mainly due to an 11% rise in the number of tests conducted. While earnings before interest, taxes, depreciation, and amortization (EBITDA) also grew by 11% YoY to ₹720 million, profit margins stayed the same at roughly 22%. Net profit after tax (PAT) for the quarter reached ₹314 million, a 16% YoY increase. This is good [[business]] news for investors.
Strong Performance in Smaller Cities
Metropolis Healthcare is expanding its reach. Their business in tier-III cities, which currently accounts for 26% of their revenue, showed a strong 17% YoY growth. This success is linked to their network expansion in these areas, which remains a key focus for future growth.
Future Outlook and Acquisitions
The company expects the recent acquisition of Core diagnostics (to be completed by the end of February 2025) to slightly reduce profit margins. They also have plans for more acquisitions, particularly in North India. These expansion plans will likely increase expenses, leading to a decrease in profitability in the short term.
Analyst Projections and Investment Advice
Based on these [[latest]] updates, financial analysts have adjusted their revenue projections for Metropolis Healthcare. Earnings estimates have been lowered by 12% for the fiscal years 2025, 2026, and 2027, to account for the higher costs related to expansion. Despite the margin adjustments, the company still looks promising. The target price has been set at ₹1,970, using a price-to-earnings (PE) ratio of 39 times the estimated earnings per share (EPS) for fiscal year 2027.
