Nidan Laboratories & Healthcare Ltd Management Discussions

The Companys assessment performance for the year ended March 31, 2025 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 29 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:

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

The Indian diagnostics industry is a rapidly growing sector, valued at $13 billion in 2023 and projected to reach $25 billion by 2028. Its driven by increasing healthcare spending, rising awareness of the importance of early disease detection, and the growth of digital health platforms. The industry is characterized by a mix of organized and unorganized players, with the organized sector, including national chains and hospital-based labs, holding a significant share.

RISKS AND CONCERNS:

The diagnostics industry faces numerous risks, including those related to patient safety, regulatory compliance, competition, and financial stability. These risks can impact the quality of care, the cost of diagnostics, and the overall success of diagnostic businesses.

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.

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. 2,452.75 Lakhs as against the Income from Operations of Rs. 2,417.74 Lakhs in the corresponding previous year. The Company earned a Profit of Rs. 731.26 Lakhs before Interest and Depreciation as compared to a profit of Rs. 919.06 Lakhs in the corresponding previous year. The Company made a Net Profit of Rs. 197.69 Lakhs during the year as against a Net loss of Rs. 323.23 Lakhs 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. The diagnostic industry in India is projected for strong growth, driven by factors like increasing healthcare spending, rising awareness about preventive care, and technological advancements. The market is expected to reach a value of Rs 1.36 trillion by 2026, with a CAGR of 14%. This growth is fueled by both the increasing number of people prioritizing early detection and the development of new diagnostic technologies. 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.

DETAIL OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATION

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

Sr. Particular No.	Ratio for Current Period	Ratio for Previous Period	Variance %	Reason for change
1. Current Ratio	1.10	2.67	(58.92)	Decrease in ratio is due to recovery of short term loan in the current year
2. Debt Equity Ratio	0.16	0.19	(13.24)
3. Debt Service Coverage Ratio	2.81	0.91	209.41	Improvement in ratio is due to non occurance of exceptional item in the current year
4. Return on Equity Ratio	0.03	(0.05)	(161.73)	Improvement in ratio is due to non occurance of exceptional item in the current year
5. Trade Receivable Turnover Ratio	27.38	7.38	270.78	Improvement in ratio is due to provision for doubtful debt booked in previous year which has a significant impact on average debtor in previous year

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.

For NIDAN LABORATORIES AND HEALTHCARE LIMITED
TEJAL ANIL JAYAKAR	EDWIN FRANCIS DABRE
Director	Director
DIN: 07984686	DIN:07705632
Date: July 31, 2025
Place: Virar