Metropolis Healthcare to invest in new segments, plans expansion into underserved areas

Metropolis Healthcare is expanding into Tier 2, 3, and 4 towns across Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telangana, and Assam. This strategic move aims to tap into the growth potential in these under-served markets, characterised by limited high-quality diagnostic services and lower competition, CEO Surendran Chemmenkotil told Business Today in an interview.

"Expanding our presence in these regions is a pivotal part of our growth strategy. We are focusing on enhancing our offerings in therapeutic areas such as neurology and oncology. To stay ahead, we are investing in genomics and molecular diagnostics," Chemmenkotil said.

Metropolis is also directing investments into new areas to fuel growth and innovation. "We are committed to leading in therapeutic areas such as transplants, neurology, nephrology, gastroenterology, and oncology," Chemmenkotil said.

The company's growth strategy includes both organic expansion and strategic acquisitions. "For organic growth, we plan to lead in new test advancements and strengthen our relationships with specialty doctors," Chemmenkotil stated. "For inorganic growth, we are looking to acquire firms with capabilities to enhance our technical testing and distribution network," he added.

Aligned with its expansion plans, Metropolis aims to boost its collection centre networks and enhance service standards, particularly in Tier II and III markets. The company also intends to augment its B2B presence internationally, leveraging its Global Reference Laboratory as a specialty testing hub. Metropolis is also eyeing local B2C brands in markets where it currently lacks presence. "We are focusing on strategic acquisitions nationwide to strengthen our market position," Chemmenkotil said.

In tandem with these strategies, Metropolis claimed, that it continues to uphold a presence in established markets in the south and west while targeting under-served regions in northeast and central India. "Our approach emphasises enhancing access and entry points to ensure comprehensive nationwide coverage," Chemmenkotil maintained.

To sustain its competitive edge, Metropolis is investing in advanced technologies. "Artificial intelligence (AI) is becoming an essential part of our operations," Chemmenkotil said. "Through our collaboration with Qritive™, a global leader in AI solutions for pathology labs, we enhance our capabilities, particularly in cancer diagnostics,” he added.

On Tuesday, Metropolis Healthcare reported its Q4FY24 results, showing revenue from operations of Rs 313 crores, an 11% increase from Q4FY23's Rs 282 crores. The core business revenue rose by 15% to Rs 308 crores from Rs 267 crores in the previous year. EBITDA before CSR and ESOP increased by 14% to Rs 82.4 crores, with an EBITDA margin of 26.4%, up 70 basis points from 25.7%. Profit after tax stood at Rs 36.1 crores, an 8% rise from Rs 33.5 crores, though the PAT margin slightly decreased by 30 basis points to 11.6% from 11.9%.