Growth at Dr Lal PathLabs is primarily driven by volumes and the diagnostics chain was “focussed on productivity in the business”, managing director Om Manchanda told CNBC-TV18 in an interview on July 29.
Manchanda said that the company's Swasthfit preventive testing had risen to 21 percent of the sales. Bundled packages have also risen and non-Covid sales bounced back.
On the firm’s Q1FY23 numbers, Manchanda said the legacy business was up 15 percent year on year. “We hope to revert to our pre-Covid margins. We are acutely aware about the competition,” he added.
The whole pricing per test had reduced and realisations risen, he said. “We have to focus on our target market and price accordingly. We have a legacy and hope to compete in the times to come,” he said.
Manchanda said the average number of tests per patient was 2.65, adding people were getting more tests under preventive and bundled packages.
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On pricing, he said that the cost for high-end testing will rise and that of routine tests will fall. “We are hopeful that the margin should be around the mid-20s,” he said.
Watch the full interview with CNBC-TV18 here