Dr Lal Path Labs Q4 profit jumps 49% on increased testing demand

Dr Lal Path Labs, the country’s leading diagnostics firm in terms of revenue, recorded a major surge in profit for the fourth consecutive quarter on Thursday, fuelled by the expansion of its laboratory network and heightened demand for medical tests.

The company's consolidated net profit skyrocketed by 49 per cent year-on-year to Rs 84.5 crore in the fourth quarter.

Following the release of the results, the company's shares soared by as much as 7.8 per cent, before moderating to trade up approximately 6 per cent. Competitors such as Metropolis Healthcare and Thyrocare Technologies also experienced gains, with Metropolis Healthcare up about 2 per cent and Thyrocare Technologies gaining around 1 per cent.

Analysts anticipate that the diagnostic firms will continue to reap benefits from expansions into new geographic regions and strategic price adjustments.

"We're expanding our presence in key markets by strengthening our footprint in Tier 3 and Tier 4 towns," remarked Shankha Banerjee, Chief Executive Officer-designate of Dr Lal PathLabs.

During the quarter, the number of samples tested surged by 8.5 per cent, marking an approximate 10 per cent increase for the fiscal year.

With a network of over 280 labs across India, the company reported a total revenue climb of 11 per cent, reaching Rs 545 crore.

Thyrocare is scheduled to announce its fourth-quarter results next week.

(With Reuters inputs)