Metropolis Healthcare posts 13% YoY revenue growth in Q1 FY25; shares rise

In Q1 FY25, Metropolis Healthcare delivered strong financial performance, highlighted by a 13% year-on-year (YoY) growth in revenue. According to a regulatory filing, this growth was driven by a jump in test volumes, which increased by around 9.5%, and patient volumes, which gained by nearly 7% over the same period last year.

Metropolis Healthcare’s Truhealth wellness and bundling segment emerged as the fastest-growing part of the company. In addition to this, their business-to-consumer (B2C) revenues increased by around 18% YoY for Q1 FY25.

Metropolis Healthcare achieved a significant financial milestone by becoming debt-free. The company held cash reserves amounting to around ₹140 crore as of June 30, 2024.

The Metropolis Healthcare stock gained 2.24% on the NSE on Tuesday, July 9, reaching an intraday high of ₹2,088 a piece. It later pared all the gains and the stock was trading flat at ₹2,043.20 at around 2:30 pm.

Despite facing competition from hospitals, organised players and health-tech companies over the past 12 to 18 months, Metropolis Healthcare has maintained a strong growth trajectory by focusing on its core strengths.

The company has expanded its market share in the B2C segments, driven by strong brand trust, industry-leading testing capabilities and development of its wellness portfolio. In the business-to-business (B2B) segment, Metropolis has focused on enhancing service offerings and delivering value-added solutions to customers, resulting in double-digit revenue growth, said the company.

Even though Q1 historically is a weaker quarter for diagnostics in West India, which is the company's largest contributing region, Metropolis Healthcare achieved strong revenue growth in June quarter. This was primarily supported by increased patient and test volumes across various segments. The expansion in volumes was supported by existing and newly established networks of centres.

The ongoing investments in expanding laboratory infrastructure, enhancing technology capabilities and strengthening the brand contributed to improved margins year-on-year.