Vijaya Diagnostic gains 9% to hit a year-high level after strong growth in Q4 revenue, net profit

Vijaya Diagnostic Centre shares rallied as much as 9.45% to hit a fresh 52-week high of ₹799.3 on the NSE.

Although the stock opened slightly lower at ₹728.50 compared to its previous close of ₹730.25 apiece on the NSE, it quickly gained momentum, hitting the 52-week high. However, shares of the diagnostic services provider pared some of early gains and traded at ₹788.5 apiece, up 7.92%, at 1:32 pm.

In the quarter ending March 2024, the diagnostic chain saw a substantial year-on-year (YoY) increase of 28.3% in revenue at ₹155.2 crore, compared to ₹120.9 crore in Q4FY23. The company’s net profit for the same quarter grew 21.7%, reaching ₹33.4 crore, compared to ₹27.4 crore in Q4FY23.

In the March 2024 quarter, Vijaya Diagnostic reported an EBITDA of ₹63.1 crore, compared to ₹49.1 crore in the year-ago period, marking a 28.5% YoY rise. The company also demonstrated an improvement in its EBITDA margin, reporting 40.7% in Q4FY24, a 10 basis points increase from the 40.6% recorded in the corresponding period of the previous year.

Suprita Reddy, the MD and CEO of Vijaya Diagnostic Centre, said that after six months of business operations, the company’s Tier-II hub centre in Mahbubnagar, Telangana, has achieved break-even. She added that the company had also made progress in integrating PH Pune with the parent company. As of April 1, 2024, Vijaya Diagnostic has transitioned all essential ERP and other IT systems from PH to the parent company's applications, she remarked.

In an exchange filing, the company said that its board has proposed a dividend of ₹1 per equity share, equivalent to 100% of a face value of ₹1 per share, for the fiscal year ended March 31, 2024. This recommendation is subject to approval by the shareholders at the annual general meeting of the company.

Vijaya Diagnostic Centre has a significant footprint in south and west India. It has 145 diagnostic centres and 21 reference laboratories across 23 cities in Telangana, Andhra Pradesh, Maharashtra, NCR, and Kolkata. The company offers a range of pathology and radiology investigations.