Nidan Laboratories & Healthcare Ltd Management Discussions

The Companys assessment performance for the year ended March 31, 2024 and the outlook for the current year are based on the current environment and business situation. However, unforeseen circumstances and those arising from external factors could affect the performance and the results.

INDUSTRY STRUCTURE AND BUSINESS OVERVIEW:

Indian healthcare industry comprising of manufacturing and marketing of pharmaceuticals and active ingredients, hospital chains, insurance companies and diagnostic outfits. Since incorporation, our Company specializes in all Diagnostic services under one roof. Diagnostic services consisting of everything from Pathology, Radiology, Cardiology as well as Neurology. NIDAN through its 28 years of growing has earned a reputation among its clients by winning several accolades and client appreciation that testify our commitment levels and effective deliveries of good work.

OPPORTUNITIES AND THREATS:

Opportunities and Threats In keeping with the size of the population there is an extensive requirement for quality diagnostics around the country.

The diagnostic industry has emerged as an attractive play in Indias growing healthcare sector and is one of the fastest growing services in the country. The domestic diagnostic industry is estimated at USD9bn (around INR 675bn) and is expected to grow at a compounded annual growth rate (CAGR) of ~10% over the upcoming years. Growth will be primarily driven by change in demographics, increase in lifestyle diseases, and higher income levels across all strata of society, rise in preventive testing, deeper penetration with asset-light expansion, and spread of healthcare services and insurance.

The COVID-19 pandemic has put the spotlight on convenience above all, with demand for home collection of samples rising exponentially. As has been demonstrated organised chains are better poised to respond to such evolving aspects of the industry in a cost-effective fashion.

RISKS AND CONCERNS:

Regulatory oversight and intervention the testing infrastructure across the nation is bound by Central and State statute. During times of epidemics/pandemics where the common good of the population is at stake the regulator does step-in to mandate pricing for prescribed procedures/tests. Such interventions are transient in nature and are instituted with a view to ameliorate the healthcare needs of the patient community.

Multi-pronged competition Fragmentation being a key feature of the diagnostics sector, competition from the unorganised players is rampant. Regional and city-based networks that have drawn investment from Private Equity players too have primarily resorted to pricing cuts as a means to build presence.

In light of the COVID-19 pandemic the need for ramping up home collection has become more acute. Evolving technologies An internal panel of qualified professionals continually evaluates the latest innovation in diagnostics and their suitability for commercialisation across the Companys network.

FINANCIAL & OPERATIONAL PERFORMANCE:

During the year under review the Company Continues to undertake its business of providing various Healthcare and Diagnostics Services. Accordingly, the Companys Income from Operations was Rs 2417.74 lakhs as against the Income from Operations of Rs 2426.59 Lakhs in the corresponding previous year. The Company earned a Profit of Rs 919.06 Lakh before Interest and Depreciation as compared to a profit of Rs 1013.29 Lakh in the corresponding previous year. The Company incurred losses of Rs 323.96 Lakh during the year as against a profit of Rs 353.96 Lakh in the corresponding previous year.

CONTROL SYSTEMS:

In our judgment, the Company has adequate financial and administrative systems and controls and an effective internal audit function.

OUTLOOK:

We believe the outlook for our business is excellent under the circumstances. In this year, we have further strengthened the good reputation. We expect to continue to increase our profits. All forward-looking statements in our report are based on our assessments and judgments exercised in good faith at this time. Of course, actual developments and/or results may differ from our present anticipation.

25% or more as compared to the immediately previous financial year) in key financial ratios.:

CAUTIONARY NOTE:

Some of the statements contained within this report may be forward looking in nature within the meaning of applicable securities laws and regulations and may involve risks and uncertainties. Actual Result and Outcomes in future may vary materially from those discussed herein. Factors that may cause such variances include, but are not limited to management of growth, risk associated with new product version, dependence on third party relationship, activities of competitors and changes in the government regulations, tax laws and other statues and other incidental factors.