Diagnostics players have become rational in terms of pricing, said Thyrocare MD and CEO Rahul Guha in an interview with CNBC-TV 18.
Goldman Sachs had recently downgraded diagnostics companies like Dr. Lal Pathlabs and Metropolis Healthcare on account of rising competition and stretched valuations.
According to Guha, de-growth at partner company PharmEasy has largely been driven by a move towards profitability. He noted that there was a volume shrinkage after discounts were pulled back from the platform.
However, Thyrocare has opted for price hikes in the quarter. Thyrocare Y-o-Y has taken a price hike of up to 10 percent. "That has been reflected in our gross margins also. We haven't seen a volume pullback. We have volume growth of 8 percent," Guha observed.
He stated that the management plans to hold the normalised EBITDA in the 30-31 range. Throcare had normalised EBITDA of 30 percent in Q2 of FY 24 and in the same period the previous year.
The company had launched its specialised health package Jaanch in April 2023. "Jaanch has surprised us very positively. It has already clocked Rs 1 crore revenue," Guha said.
He averred that there clearly is a demand for these kinds of packages.
Thyrocare Technologies on October 31 reported a 31.75 percent year-on-year rise in consolidated net profit at Rs 20.33 crore for the July-September quarter of the current financial year.
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