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Thyrocare Technologies - One-Off Drives Q2; Recovery In Base Subdued: ICICI Securities

Thyrocare Technologies - One-Off Drives Q2; Recovery In Base Subdued: ICICI Securities

<div class="paragraphs"><p>A research assistant, works in the&nbsp; research lab.&nbsp; (Photographer: Tim Boyle/Bloomberg) </p></div>
A research assistant, works in the  research lab.  (Photographer: Tim Boyle/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Thyrocare Technologies Ltd. reported strong growth ahead of our estimates on all fronts including the one-off government contracts.

Excluding Covid-19 pathology revenue declined 8.5% QoQ with declining realisations. Covid-19 sales contributed 39.2% of total revenue. Total revenue grew 15% YoY to Rs 1.8 billion (our estimate: Rs 1.4 billion).

Ebitda margin improved 1,030/740 basis points YoY/QoQ to 50.7% (our estimate: 36.5%) mainly due to one-off contracts wherein cost of consumables was borne by the government.

Although base business is recovering but pace of recovery is slower than peers.

PharmEasy has recently acquired Thyrocare Technologies which may help in improving volumes over long term.

Click on the attachment to read the full report:

ICICI Securities Thyrocare Q2FY22 Results Update.pdf

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