Dr Lal Pathlabs' revenue growth was aided by a low base in Q3 while volume growth momentum continues. The street is a bit concerned about pricing pressure in an industry that has become so competitive now. In an interview to CNBC-TV18, Om Manchanda, CEO of Dr Lal Pathlabs discussed the company's Q3 performance.
The company continues to remain highly competitive right across all segments of market ranging from preventive to illness and even to predictive going into the future, said Dilip Bidani, CFO, Dr. Lal PathLabs.
In an interview to CNBC-TV18, Doctor Om Manchanda, CEO of Dr Lal Pathlabs spoke about the results and his outlook for the company.
High competitive pressures hamper volume growth this quarter. In an interview to CNBC-TV18, Dilip Bidani, CFO of Dr Lal PathLabs spoke about the results and his outlook for the company.
Dr Lal Pathlabs' Kolkata labs will start operation by the second half of next year and company‘s central lab will come up by September 2017.
It has been a fairly good quarter on account of the seasonal fevers, said Dilip Bidani, CFO, Dr Lal PathLabs in an interview with CNBC-TV18.
The current spurt in diagnostic tests on dengue and chikungunya in areas like New Delhi will help Dr Lal PathLabs post good Q2 volumes, says Om Manchanda, Chief Executive of the healthcare firm.
The quarter growth has been in-line with expectations, says Om Manchanda, CEO of Dr Lal PathLabs adding that some operational expenses will be seen in the next nine months.
CEO Om Manchanda expects planned expansion of central lab network in Kolkata and Lucknow will help Dr Lal PathLabs to sustain margins in FY17. Diagnostics space which has low penetration in India makes it a good pitch for companies like Dr Lal PathLab, according to Citi's Prashant Nair.
Dilip Bidani, CFO of Dr Lal PathLabs expects margins to dilute by 200-300 bps in coming two to three years, but says that growth will be better than the expected industry growth of 16-17 percent in FY17.
Om Manchanda, CEO, Dr Lal Pathlabs, says the company's growth of 21 percent this quarter was in line with expectation and was mainly driven by volumes.