You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 29, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year.
The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated 25th July 2025 which is included in this Red Herring Prospectus under the section titled "Restated Financial Information" beginning on page 230 of this Red Herring Prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.
This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 29 and 18 respectively, and elsewhere in this Red Herring Prospectus Accordingly, the degree to which the financial statements in this Red Herring Prospectus will provide meaningful information depend entirely on such potential investors level of familiarity with Indian accounting practices. Please also refer to section titled "Presentation of Financial, Industry and Market data" beginning on page 17 of this Red Herring Prospectus.
BUSINESS OVERVIEW
Our Company was originally incorporated as a private limited company under the Companies Act, 1956 in the name and style of "Star Imaging & Path Lab Private Limited" bearing Corporate Identification Number
U85110DL2004PTC126679 dated May 31, 2004, issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Subsequently, our Company was converted into a Public Limited Company vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting, held on April 12,
2024, and consequently the name of our Company was changed from "Star Imaging & Path Lab Private Limited" to "Star Imaging and Path Lab Limited" vide a fresh certificate of incorporation dated September 17,
2024 issued by the Registrar of Companies, Central Processing Centre bearing CIN U85110DL2004PLC126679.
The company operates a diagnostic testing network, NABL accredited, delivering pathology, radiology, Cardiology, and Neurology services in Delhi (B2C, B2B & B2G model), Uttar Pradesh (B2G model), and Nasik (B2G Model) regions of India.
The Company started its journey from 1978 as proprietorship under the name of Janta X-Ray Clinic and were providing X-ray and basic pathology tests using manual methods. Over the years, they have upgraded their services, equipment, and diagnostic technologies to incorporate the latest advancements in medical science, ensuring the care and improved patient outcomes. This vision led to the establishment of Star Imaging & Path Lab Private Limited in 2004, as Private Limited entity, with a vision to offer pathology, radiology, Cardiology, and Neurology services under one roof. As part of our expansion, we acquired the businesses of Janta X-Ray Clinic, M/s Star Imaging & Path Lab, and M/s Star Health Care in 2011. For further details, please refer chapter titled "Business Overview" beginning on Page no. 139 of this Red Herring Prospectus.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR AND STUB PERIOD
As per mutual discussion between the Board of the Company and BRLMs, in the opinion of the Board of the
Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:
The Board of our Company authorized the appointment of Ms. Neelam Ratra as Additional Director of the Company on June 16, 2025 & Shareholders of our Company regularize the appointment of Ms. Neelam Ratra as Executive Director of the Company in the Extra-Ordinary General Meeting held on June 25, 2025. Mr. Ram Avtar Gupta has resigned from the Board of Directors of the Company w.e.f. 01st July, 2025 Dr. Sameer Bhati has resigned from the Board of Directors of the Company w.e.f. 16th June, 2025 The Board of our Company authorized the appointment of Mr. Dikshant Nagpal as Independent Director of the Company on November 30, 2024 & Shareholders of our Company regularize the appointment of Mr. Dikshant Nagpal as Independent Director of the Company in the Extra-Ordinary General Meeting held on December 17, 2024. The Board of our Company authorized the appointment of Ms. Chhaya Gupta as an Additional Director of the Company on March 20, 2024 & Shareholders of our Company regularize the appointment of Ms. Chhaya Gupta as Director of the Company in the Annual General Meeting held on September 30, 2024. The Board of our Company authorized the appointment of Dr. Sameer Sood as an Additional Director of the Company on September 27, 2024 & Shareholders of our Company regularize the appointment of Dr. Sameer Sood as Non-Executive Non Independent Director of the Company in the Annual General Meeting held on September 30, 2024. The Board of our Company authorized the appointment of Dr. Vimal Gupta as an Additional Director of the Company on July 01, 2024 & Shareholders of our Company regularize the appointment of Dr. Vimal Gupta as Independent Director of the Company in the Annual General Meeting held on September 30, 2024. The Board of our Company authorized the appointment of Mr. Yogesh Kumar Virmani as an Additional Director of the Company on July 01, 2024 & Shareholders of our Company regularize the appointment of Mr. Yogesh Kumar Virmani as Independent Director of the Company in the Annual General Meeting held on September 30, 2024. The shareholders of our Company authorized the board to borrow money in excess of prescribed limits pursuant to Section 180(1)(c) of the Companies Act, 2013 in the Extra-Ordinary General Meeting held on November 15, 2024. Our Board have, pursuant to Section 62(1)(c) of the Companies Act, 2013, by a resolution passed at its meeting held on November 12, 2024, authorized the Issue, subject to the approval of the shareholders and other authorities as may be necessary. The shareholders of the Company have, pursuant to Section 62(1)(c) of the Companies Act, 2013, by a special resolution passed in the Extra-ordinary General Meeting held on November 15, 2024 authorized the Issue. The Board of Directors Constituted various committees required as per Companies Act 2013 (on November 30, 2024 . Resolution for Approval and Authorisation of to file Application Under Section 131 Of Companies Act, 2013 For Voluntary Revision of Financial Statements, Board Report And Its Annexures For Previous Financial Years 2017-18, 2018-2019, 2019-2020, 2020-21, 2021-22 And 2022-23 passed in board meeting dated 12th December 2024. The Board of Directors of our Company has allotted 1,20,00,000 equity shares as Bonus Issue in the ratio of 8:1 in the board meeting dated December 18, 2024. The Board of our Company appointment Mr. Pawan Gupta as Chairman of Company in board meeting held on December 16, 2024.
The Shareholders of our Company adopted new set of Article of Association of Company.
The Board of our Company approved the resolution dated 15th January 2025 for making application of compounding of CSR
SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our business is subjected to various risks and uncertainties, including those discussed in the section titled
"Risk Factor" beginning on page 29 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:
Fluctuations in the cost including medical equipment, consumables, and skilled labor/ Technicians. Seasonal disease outbreaks and pandemics, which may impact revenue while fixed costs remain constant, affecting profitability. Adverse changes in central or state government policies affecting healthcare infrastructure, public-private partnerships, taxation, or subsidies. Variability in the companys results of operations and financial performance.
Challenges in attracting and retaining qualified personnel essential for operations. Market fluctuations and industry dynamics beyond our control.
Failure to adapt to evolving industry needs, government regulations, and technological advancements. Unfavorable economic developments affecting demand and operational stability. Risks associated with the execution of our growth strategies and expansion plans. General economic and market conditions impacting financial performance. Regulatory changes in India or foreign countries that affect national and international finance. Dependence on key customers and contracts, particularly government agreements, which, if renegotiated or terminated, could impact revenue. Operational risks associated with disruptions at key diagnostic centers affecting service delivery. Technology and data security risks, including potential cyber threats and data breaches that may affect compliance and business reputation.
SIGNIFICANT ACCOUNTING POLICIES
For Significant accounting policies please refer "Significant Accounting Policies", under Chapter titled Financial Information beginning on page 230 respectively of the Red Herring Prospectus.
CHANGE IN ACCOUNTING POLICIES
Except as mentioned in chapter "Financial Information" on page 230 of this Red Herring Prospectus, there has been no change in the accounting policies during the Fiscal 2024.
RESERVATIONS, QUALIFICATIONS AND ADVERSE REMARKS
There are no reservations or qualifications or adverse remarks in the auditors report on restated financial statements.
SUMMARY OF THE RESULT OF OPERATIONS
Our Results of Operations (Consolidated Financial Statements)
The following discussion on the consolidated financial operations and performance should be read in conjunction with the financial results of the company.
Amount in lakhs
| For the financial year ended | ||||||
| Particulars | Year Ended 31 March 2025 | (%)* | Year Ended 31 March 2024 | (%)* | Year Ended 31 March 2023 | (%)* |
| Total Revenue: | ||||||
| Revenue from Operations | 8,350.01 | 99.66% | 7,878.41 | 98.51% | 5,853.23 | 99.75% |
| Other income | 28.73 | 0.34% | 119.01 | 1.49% | 14.95 | 0.25% |
| Total Revenue | 8,378.74 | 100.00 % | 7,997.42 | 100.00 % | 5,868.18 | 100.00 % |
| Expenses: | ||||||
| Operating Expenses | 2,416.35 | 28.84% | 2,775.92 | 34.71% | 2,235.86 | 38.10% |
| Cost of material consumed | 682.19 | 8.14% | 841.96 | 10.53% | 793.89 | 13.53% |
| Employees Benefit Expenses | 884.39 | 10.56% | 846.43 | 10.58% | 953.31 | 16.25% |
| Finance costs | 249.89 | 2.98% | 228.40 | 2.86% | 173.82 | 2.96% |
| Depreciation and Amortization Expenses | 495.85 | 5.92% | 524.38 | 6.56% | 334.46 | 5.70% |
| Other expenses | 1,506.93 | 17.99% | 1,168.44 | 14.61% | 1,288.05 | 21.95% |
| Total Expenses | 6,235.60 | 74.42% | 6,385.53 | 79.84% | 5,779.39 | 98.49% |
| Profit before extraordinary & exceptional items | ||||||
| Extraordinary & Exceptional Items | 2,143.14 | 25.58% | 1,611.89 | 20.16% | 88.79 | 1.51% |
| Profit after extraordinary & exceptional items | ||||||
| Tax Expenses | ||||||
| Current Tax | 541.32 | 6.46% | 379.28 | 4.74% | 47.50 | 0.81% |
| Earlier year tax | 2.83 | 0.03% | 0.00 | 0.00% | 0.00 | 0.00% |
| Deferred Tax Credit & Expense | 3.45 | 0.04% | -12.77 | -0.16% | -17.00 | -0.29% |
| Total Tax Expenses | 547.60 | 6.54% | 366.51 | 4.58% | 30.50 | 0.52% |
| Profit for the Year | 1,595.54 | 19.04% | 1,245.38 | 15.57% | 58.29 | 0.99% |
| Profit Attributable to Minority Interest | 2.93 | 0.03% | 3.62 | 0.05% | 0.40 | 0.01% |
| Profit for the Year after Minority Interest | 1,592.62 | 19.01% | 1,241.76 | 15.53% | 57.89 | 0.99% |
* (%) column represents percentage of total revenue.
Overview of Balance Sheet for the financial year 2023-24 Current Asset Trade receivables
Our total revenue for FY 2023-24 is Rs. 7,850.36 Lakhs, with Rs. 4,589.66 Lakhs derived from government clients and Rs. 3,260.70 Lakhs from non-government clients. We reiterate here that significant portion of the receivables of the company are related to government receivables. As of 31-03-2024, our total trade receivables amount to Rs. 3,257.76 Lakhs, with Rs. 3,084.04 Lakhs (approximately 94.67%) attributed to government receivables, and only Rs. 173.72 Lakhs from non-government clients.
The high trade receivables are primarily due to the fact that the majority of our revenue comes from government contracts, for which the payment cycle is typically longer. While our business model ensures that payments from non-government clients are generally received in cash immediately upon the provision of services, payments from government clients take longer to be processed and settled. As a result, the significant portion of our trade receivables comes from these longer payment cycles associated with government contracts
Overview of Revenue and Expenses
Our revenue and expenses are reported in the following manner:
Total Revenues
Revenue of operations:
Our Companys revenue is primarily generated from supply of services.
Other Income:
The Other Income mainly comprises of Interest Income, Profit on sale of Asset and Insurance Claim.
Expenses
Our expenses primarily consist of Operating Expenses, Cost of Material Consumed, Employee Benefits Expenses, Finance Cost, Depreciation and Amortization Expense and Other Expenses.
Operating Expenses
It includes Consultation Fees, Medical and Testing Expenses and Repairs & Maintenance of Machinery.
Cost of material consumed
It includes opening stock of consumables, Purchases made during the year and closing stock of consumables.
Cost of material consumed
In the diagnostics industry, operating expenses and cost of materials consumed are closely interlinked, and their composition can vary due to factors such as: Nature and volume of tests performed, Type of diagnostic equipment and reagents used, Mix of pathology, radiology, and specialized services, Patient location and centre-specific cost dynamics, and Operational maturity of centres. Therefore, we are explaining the trend of both the cost on consolidated basis. While overall revenue has grown during the period under review, the cost of materials consumed as a percentage of revenue has reduced, which reflects the impact of scale efficiencies and process optimization rather than any compromise on service or quality.
H1 FY 2025 (Sep-24) Sustained Efficiency
Revenue of 4,251.74 lakhs in six months shows continuing growth momentum. Material consumed was 473.39 lakhs representing just 11.1% of revenue.
Combined with operating expenses, the cost-to-revenue ratio improved to 43.36%, the lowest in the last four periods. This reflects: o Stabilization post-restructuring, o No new centre additions, hence no one-time setup or ramp-up material costs,
Ongoing benefits from automation and centralized quality control.
Employment Benefit Expenses
It includes Salaries & wages, Contribution to Provident and funds, Gratuity Expenses and Staff Welfare Expenses related to Employees.
Finance Costs
Finance cost consist of interest expenses on borrowings and Loan Processing Charges.
Depreciation
It includes Depreciation on Computers, Vehicles, Medical Equipment, Office Equipment, Furniture & Fixtures and Solar Systems and Capital WIP.
Other Expenses
Other expense includes Director Remuneration, Discount, Electricity Expenses, Professional Fees, and Rent etc.
Tax Expenses
Tax expense comprises of Current Tax, Deferred Tax and MAT Credit.
FINANCIAL YEAR 2024-25 COMPARED WITH THE FINANCIAL YEAR 2023-24 (BASED ON RESTATED FINANCIAL STATEMENTS)
Total Revenues
Total Income
Our total revenue increased by 381.22 lakhs i.e. 4.77% to 8,378.74 lakhs for the financial year 2024-25 from 7,997.42 lakhs for the financial year 2023-24 due to the factors described below:
Revenue of operations
Our revenue from operations increased by 471.60 lakhs i.e. 5.99% to 8,350.01 lakhs for the financial year
2024-25 from 7,878.41 lakhs for the financial year 2023-24. Revenue from operation increased primarily because of increase in footfall of patients in existing centres and increase in institutional centres (B2B) as compared to previous financial year. Additionally, the revenue from operations from Staredu Education and Training Institute Private Limited has increased by 11.94 Lakhs in financial year 2023-24 from financial year 2022-23.
Other Income
The other income decreased by 90.28 lakhs i.e. 75.86% to 28.73 lakhs for the financial Year 2024-25 from
119.01 lakhs for the financial year 2023-24. The decrease was mainly due to profit from sale of asset of 99.25 lakhs booked in financial Year 2023-24.
EXPENDITURE
Total Expenses
Total Expenses decreased by 149.93 lakhs i.e. 2.35% to 6,235.60 lakhs in the financial year ended March 31, 2025, from 6,385.53 lakhs in the financial year ended March 31, 2024. Our total expenses decreased due to the factors described below:
Operating Expenses
The Operating expenses decreased by 359.57 lakhs i.e. 12.95% to 2,416.35 lakhs in the financial year ended March 31, 2025 from 2,775.92 lakhs in the financial year ended March 31, 2024. Operating Expenses decreased primarily because of fall in Medical and Testing Expenses as compared to previous financial year.
Cost of material consumed
The Cost of material consumed expenses increased by 159.78 lakhs i.e. 18.98% to 682.19 lakhs in the financial year ended March 31, 2025 from 841.96 lakhs in the financial year ended March 31, 2024. Cost of material consumed is decreased due to less amount of purchases and lower value of opening stock.
Employment Benefit Expenses
Employee Benefit Expenses increased by 37.95 lakhs i.e. 4.48% to 884.39 lakhs in the financial year ended March 31, 2025 from 846.43 lakhs in the financial year ended March 31, 2024. Employee benefit expenses were increased due to increase in salaries & wages and Directors remuneration.
Finance Cost
Finance cost increased by 21.49 lakhs i.e. 9.41% to 249.89 lakhs in the financial year ended March 31, 2025 from 228.40 lakhs in the financial year ended March 31, 2024. Finance Cost primarily increased due to increase in the interest expenses as the borrowings increased during the year.
Depreciation
Depreciation has decreased by 28.53 lakhs i.e. 5.44% to 524.38 lakhs in the financial year ended March 31, 2025 from 524.38 lakhs in the financial year ended March 31, 2024. Depreciation has decreased because the Company has not purchased any new Property, Plant and Equipment in the financial year ended March 31, 2025 and moreover, the Company uses WDV method for depreciation calculation.
Other Expenses
Other Expenses increased by 338.49 lakhs i.e. 28.97% to 1,506.93 lakhs in the financial year ended March 31, 2025 from 1,168.44 lakhs in the financial year ended March 31, 2024. Other Expenses have increased mainly due to increase in discounts provided, and rental expense, which has increased because earlier the Company had provided FDs to promoters for the rented out properties, but during the FY 2024-25, those FDs have been returned and the rent is being charged at fair market value.
Profit before Exceptional Items and Tax
Profit before Exceptional Items and Tax has increased by 531.25 lakhs i.e. 32.96% to 2,143.14 lakhs in the financial year ended March 31, 2025 from 1,611.89 lakhs in the financial year ended March 31, 2024. Profit before Exceptional Items and Tax has increased due to increase in total revenue and decrease in total expense.
Profit before Tax
Profit before Tax has increased by 531.25 lakhs i.e. 32.96% to 2,143.14 lakhs in the financial year ended March 31, 2025 from 1,611.89 lakhs in the financial year ended March 31, 2024. Profit before Tax has increased due to increase in total revenue and decrease in total expense.
Tax Expenses
Our total tax expense was increased by 181.09 lakhs i.e. 49.41% to 547.60 lakhs in the financial year ended
March 31, 2025 from 366.51 lakhs in the financial year ended March 31, 2024. Total tax expense for the year ended March 31, 2025, stood at 547.60 lakhs out of which current year tax is 541.32 lakhs, earlier year tax items is 2.83 and Deferred Tax expense is 3.45 lakhs, the Total Tax expense being 6.54% of the Total Income. Total tax expense was increased due to increase in Net Profit before Tax.
Net Profit after Tax
Net Profit after Tax has increased by 350.17 lakhs i.e. 28.12% to 1,595.54 lakhs in the financial year ended March 31, 2025 from 1,245.38 lakhs in the financial year ended March 31, 2024. Profit after Tax has increased due to increase in total revenue and decrease in total expense.
FINANCIAL YEAR 2023-24 COMPARED WITH THE FINANCIAL YEAR 2022-23 (BASED ON RESTATED FINANCIAL STATEMENTS)
Total Revenues
Total Income
Our total revenue increased by 2,129.25 lakhs i.e. 36.28% to 7,997.43 lakhs for the financial year 2023-24 from 5,868.18 lakhs for the financial year 2022-23 due to the factors described below:
Revenue of operations
Our revenue from operations increased by 2,025.19 lakhs i.e. 34.60% to 7,878.41 lakhs for the financial year 2023-24 from 5,853.23 lakhs for the financial year 2022-23. Revenue from operation increased primarily because of increase in footfall of patients in existing centres and increase in institutional centres (B2B) as compared to previous financial year. Additionally, the revenue from operations from Staredu Education and Training Institute Private Limited has increased by 11.94 Lakhs in financial year 2023-24 from financial year 2022-23.
Other Income
The other income increased by 104.06 lakhs i.e. 696.05% to 119.01 lakhs for the financial Year 2023-24 from 14.95 lakhs for the financial year 2022-23. The increase was mainly due to profit from sale of asset of 99.25 lakhs in financial Year 2023-24.
EXPENDITURE
Total Expenses
Total Expenses increased by 606.15 lakhs i.e. 10.49% to 6,385.54 lakhs in the financial year ended March 31, 2024, from 5,779.39 lakhs in the financial year ended March 31, 2023. Our total expenses increased due to the factors described below:
Operating Expenses
The Operating expenses increased by 540.06 lakhs i.e. 24.15% to 2,775.92 lakhs in the financial year ended March 31, 2024 from 2,235.86 lakhs in the financial year ended March 31, 2023. Operating Expenses increased primarily because of increase in Medical and Testing Expenses as compared to previous financial year.
Cost of material consumed
The Cost of material consumed expenses increased by 48.08 lakhs i.e. 6.05% to 841.96 lakhs in the financial year ended March 31, 2024 from 793.89 lakhs in the financial year ended March 31, 2023. Cost of material consumed is increased due to increase in purchases and higher value of opening stock.
FY 2023 to FY 2024 Revenue Growth with Improved Material Efficiency
Revenue increased by 34.5% to 7,850.36 lakhs.
34.5% to 7,850.36 lakhs.
Material consumed increased only slightly to 841.96 lakhs, despite significant top-line growth.
As a result, material cost-to-revenue ratio dropped sharply from 13.6% to 10.7%. Key Reasons for Cost Reduction: o Bulk procurement, better vendor terms, and sourcing consolidation. o Standardization of test protocols and bundling of tests reduced wastage.
Employment Benefit Expenses
Employee Benefit Expenses decreased by 106.88 lakhs i.e. 12.86% to 724.03 lakhs in the financial year ended March 31, 2024 from 830.91 lakhs in the financial year ended March 31, 2023. Employee benefit expenses were decrease due to decrease in salaries, wages & other emoluments. These expenses were decreased because of decrease in employee heads.
Finance Cost
Finance cost increased by 54.58 lakhs i.e. 31.40% to 228.40 lakhs in the financial year ended March 31, 2024 from 173.82 lakhs in the financial year ended March 31, 2023. Finance Cost primarily increased due to increase in the interest expenses as the borrowings increases.
Depreciation
Depreciation has increased by 189.92 lakhs i.e. 56.78% to 524.38 lakhs in the financial year ended March 31, 2024 from 334.46 lakhs in the financial year ended March 31, 2023. Depreciation has been increased because of increase in Property, Plant and Equipment in the financial year ended March 31, 2024.
Other Expenses
Other Expenses decreased by 119.61 lakhs i.e. 8.48% to 1,290.84 lakhs in the financial year ended March 31, 2024 from 1,410.45 lakhs in the financial year ended March 31, 2023. Other Expenses has decreased mainly due to decrease in rental expense, professional fees and Electricity expenses.
Profit before Exceptional Items and Tax
Profit before Exceptional Items and Tax has increased by 1,523.10 lakhs i.e. 1715.39% to 1,611.89 lakhs in the financial year ended March 31, 2024 from 88.79 lakhs in the financial year ended March 31, 2023. Profit before Exceptional Items and Tax has increased due to comparative increase in total revenue than total expense.
Profit before Tax
Profit before tax has increased by 1,523.11 lakhs i.e. 1715.39% to 1,611.89 lakhs in the financial year ended March 31, 2024 from 88.79 lakhs in the financial year ended March 31, 2023. Profit before Tax has increased due to exceptional item and comparative increase in total revenue than total expense.
Tax Expenses
Our total tax expense was increased by 327.55 lakhs i.e. 507.82% to 392.05 lakhs in the financial year ended March 31, 2024 from 64.50 lakhs in the financial year ended March 31, 2023. Total tax expense for the year ended March 31, 2024, stood at 392.05 lakhs out of which current year tax is 379.28 lakhs, MAT Credit was Nil and Deferred Tax Liability is 12.77 lakhs, the Total Tax expense being 4.90% of the Total Income. Total tax expense was increased due to increase in Net Profit before Tax.
Net Profit after Tax
Net Profit after Tax has increased by 1,187.09 lakhs i.e. 2036.52% to 1,245.38 lakhs in the financial year ended March 31, 2024 from 58.29 lakhs in the financial year ended March 31, 2023. The increase was due to exceptional item and comparative increase in total revenue than total expense.
FISCAL YEAR ENDED MARCH 31, 2023, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2022 (BASED ON RESTATED FINANCIAL STATEMENTS)
Total Revenue
Our total revenue decreased by 1,058.33 lakhs i.e. 15.28% to 5,868.18 lakhs for the financial year 2022-23 from 6,926.51 lakhs for the financial year 2022-23 due to the factors described below:
Revenue from operations
Our revenue from operations decreased by 1,055.28 lakhs i.e. 15.28% to 5,853.23 lakhs for the financial year 2022-23 from 6,908.51 for the financial year 2021-22. Revenue from operation decreased primarily because of decrease in sale of services in existing centres as compared to previous financial year.
Other Income
The other income decreased by 3.05 lakhs i.e. 16.94% to 14.95 lakhs for the financial Year 2022-23 from 18.00 lakhs for the financial year 2021-22. The decrease was mainly due to there has been no such sale of fixed assets occurred.
Total Expenses
Total Expenses
Total Expenses decreased by 208.34 lakhs i.e. 3.48% to 5,779.39 lakhs in the financial year ended March 31, 2023, from 5,987.73 lakhs in the financial year ended March 31, 2022. Our total expenses increased due to the factors described below:
Operating Expenses
The Operating expenses increased by 63.57 lakhs i.e. 2.93% to 2,235.86 lakhs in the financial year ended March 31, 2023 from 2,172.29 lakhs in the financial year ended March 31, 2022. Operating Expenses increased primarily because of increase in Medical and Testing Expenses as compared to previous financial year.
Cost of material consumed
The Cost of material consumed expenses decreased by 313.19 lakhs i.e. 28.29% to 793.89 lakhs in the financial year ended March 31, 2023 from 1,107.08 lakhs in the financial year ended March 31, 2022. Cost of material consumed is decreased due to decrease in purchases during the year.
FY 2022 to FY 2023 Moderate Drop in Material Cost, Margins Under Pressure
Revenue declined by 15.3% due to post-COVID normalization.
Material consumed reduced from 1,107.08 lakhs to 793.89 lakhs, but only marginally when compared with revenue decline. As a result, cost ratios increased (combined cost-to-revenue ratio rose from 47.44% to 51.74%). Diagnostic volumes shifted from COVID testing to non-COVID services, such as teleradiology and specialized tests, which had higher variable and consultation costs but relatively lower reagent or consumable costs per unit of revenue. Vendor contracts and procurement structures had limited flexibility in the short term, preventing a proportional reduction in costs.
Employee Benefit Expenses
Employee Benefit Expenses decreased by 59.01 lakhs i.e. 6.63% to 830.91 lakhs in the financial year ended March 31, 2023 from 889.92 lakhs in the financial year ended March 31, 2022. Employee benefit expenses were decrease due to decrease in gratuity expense occurred during the year compared to previous financial year.
Finance Cost
Finance cost decreased by 20.41 lakhs i.e. 10.51% to 173.82 lakhs in the financial year ended March 31, 2023 from 194.23 lakhs in the financial year ended March 31, 2022. Finance Cost primarily decreased due to decrease in the interest expenses.
Depreciation
Depreciation has decreased by 18.16 lakhs i.e. 5.15% to 334.46 lakhs in the financial year ended March 31, 2023 from 352.62 lakhs in the financial year ended March 31, 2022. Depreciation has been increased because of increase in PPE in the financial year ended March 31, 2023.
Other Expenses
Other Expenses increased by 138.87 lakhs i.e. 10.92% to 1,410.45 lakhs in the financial year ended March
31, 2023 from 1,271.58 lakhs in the financial year ended March 31, 2022. Other Expenses has increased mainly due to increase in the Professional fees.
Profit before Exceptional Items and Tax
Profit before Exceptional Items and Tax has decreased by 849.99 lakhs i.e. 90.54% to 88.79 lakhs in the financial year ended March 31, 2023 from 938.78 lakhs in the financial year ended March 31, 2022. Profit before Exceptional Items and Tax has decreased due to higher comparative increase in total expenses than total revenue.
Profit Before Tax
Profit before tax has decreased by 849.99 lakhs i.e. 90.54% to 88.79 lakhs in the financial year ended March 31, 2023 from 938.78 lakhs in the financial year ended March 31, 2022. Profit before Tax has decreased due to higher comparative increase in total expenses than total revenue.
Tax Expense
Our total tax expense was decreased by 245.03 lakhs i.e. 79.16% to 64.50 lakhs in the financial year ended March 31, 2023 from 309.53 lakhs in the financial year ended March 31, 2022. Total Tax Expense for the year ended March 31, 2023, stood at 64.50 lakhs out of which current year tax is 47.50 lakhs, MAT Credit was Nil and Deferred Tax Liability is 17.00 lakhs, the Total Tax expense being 1.10% of the Total Income. Total tax expense was decreased due to decrease in Net Profit before Tax.
Net Profit After Tax
Net Profit after Tax has decreased by 570.96 lakhs i.e. 90.74% to 58.29 lakhs in the financial year ended March 31, 2023 from 629.25 lakhs in the financial year ended March 31, 2022. The decreased was due to higher comparative increase in total expenses than total revenue.
Our Results of Operations (Standalone Financial Statements)
The following discussion on the Standalone financial operations and performance should be read in conjunction with the financial results of the company.
(Amount in lakhs)
| Particulars | For the financial year ended | |||||
| March 31, 2024 | (%)* | March 31, 2023 | (%)* | March 31, 2022 | (%)* | |
| Total Revenue: | ||||||
| Revenue from Operations | 8,323.92 | 99.66% | 7,850.36 | 98.51% | 5,837.12 | 99.74% |
| Other income | 28.72 | 0.34% | 118.88 | 1.49% | 14.95 | 0.26% |
| Total Revenue | 8,352.64 | 100.00% | 7,969.25 | 100.00% | 5,852.07 | 100.00% |
| Expenses: | ||||||
| Operating Expenses | 2,403.33 | 28.77% | 2,764.88 | 34.69% | 2,226.29 | 38.04% |
| Cost of material consumed | 682.19 | 8.17% | 841.96 | 10.57% | 793.89 | 13.57% |
| Employees Benefit Expenses | 884.39 | 10.59% | 844.18 | 10.59% | 953.31 | 16.29% |
| Finance costs | 249.89 | 2.99% | 228.40 | 2.87% | 173.82 | 2.97% |
| Depreciation and Amortization Expenses | 495.79 | 5.94% | 524.18 | 6.58% | 334.27 | 5.71% |
| Other expenses | 1,503.70 | 18.00% | 1,165.32 | 14.62% | 1,283.01 | 21.92% |
| Total Expenses | 6,219.29 | 74.46% | 6,368.92 | 79.92% | 5,764.59 | 98.51% |
| Profit before extraordinary & exceptional items | 2,133.35 | 25.54% | 1,600.33 | 20.08% | 87.48 | 1.49% |
| Extraordinary & Exceptional Items | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Profit after extraordinary & exceptional items | 2,133.35 | 25.54% | 1,600.33 | 20.08% | 87.48 | 1.49% |
| Prior Period Items | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Profit after Prior Period Items | 2,133.35 | 25.54% | 1,600.33 | 20.08% | 87.48 | 1.49% |
| Tax Expenses | ||||||
| Current tax | 538.66 | 6.45% | 379.28 | 4.76% | 47.17 | 0.81% |
| Deferred Tax | 3.43 | 0.04% | -12.77 | -0.16% | -17.00 | -0.29% |
| MAT Credit | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Total Tax Expenses | 542.09 | 6.49% | 366.51 | 4.60% | 30.17 | 0.52% |
| Profit for the Year | 1,591.26 | 19.05% | 1,233.82 | 15.48% | 57.32 | 0.98% |
* (%) column represents percentage of total revenue.
Overview of Revenue and Expenses
Our revenue and expenses are reported in the following manner:
Total Revenues
Revenue of operations:
Our Companys revenue is primarily generated from supply of services.
Other Income:
The Other Income mainly comprises of Interest Income, Profit on sale of Asset and Insurance Claim.
Expenses
Our expenses primarily consist of Operating Expenses, Cost of Material Consumed, Employee Benefits Expenses, Finance Cost, Depreciation and Amortization Expense and Other Expenses.
Operating Expenses
It includes Consultation Fees, Medical and Testing Expenses and Repairs & Maintenance of Machinery.
Cost of material consumed
It includes opening stock of consumables, Purchases made during the year and closing stock of consumables.
Employment Benefit Expenses
It includes Salaries & wages, Contribution to Provident and funds, Gratuity Expenses and Staff Welfare Expenses related to Employees.
Finance Costs
Finance cost consist of interest expenses on borrowings and Loan Processing Charges.
Depreciation
It includes Depreciation on Computers, Vehicles, Medical Equipment, Office Equipment, Furniture & Fixtures and Solar Systems and Capital WIP.
Other Expenses
Other expense includes Director Remuneration, Discount, Electricity Expenses, Professional Fees, and Rent etc.
Tax Expenses
Tax expense comprises of Current Tax, Deferred Tax and MAT Credit.
FINANCIAL YEAR 2024-25 COMPARED WITH THE FINANCIAL YEAR 2023-24 (BASED ON RESTATED FINANCIAL STATEMENTS)
Total Revenues
Total Income
Our total revenue increased by 383.39 lakhs i.e. 4.81% to 8,352.64 lakhs for the financial year 2024-25 from 7,969.25 lakhs for the financial year 2023-24 due to the factors described below:
Revenue of operations
Our revenue from operations increased by 473.56 lakhs i.e. 6.03% to 8,323.92 lakhs for the financial year
2024-25 from 7,850.36 lakhs for the financial year 2023-24. Revenue from operation increased primarily because of increase in footfall of patients in existing centres and increase in institutional centres (B2B) as compared to previous financial year. Additionally, the revenue from operations from Staredu Education and Training Institute Private Limited has increased by 11.94 Lakhs in financial year 2023-24 from financial year 2022-23.
Other Income
The other income decreased by 90.17 lakhs i.e. 75.85% to 28.72 lakhs for the financial Year 2024-25 from 118.88 lakhs for the financial year 2023-24. The decrease was mainly due to profit from sale of asset of
99.25 lakhs booked in financial Year 2023-24.
EXPENDITURE
Total Expenses
Total Expenses decreased by 149.63 lakhs i.e. 2.35% to 6,219.29 lakhs in the financial year ended March 31, 2025, from 6,368.92 lakhs in the financial year ended March 31, 2024. Our total expenses decreased due to the factors described below:
Operating Expenses
The Operating expenses decreased by 361.55 lakhs i.e. 13.08% to 2,403.33 lakhs in the financial year ended March 31, 2025 from 2,764.88 lakhs in the financial year ended March 31, 2024. Operating Expenses decreased primarily because of fall in Medical and Testing Expenses as compared to previous financial year.
Cost of material consumed
The Cost of material consumed expenses increased by 159.78 lakhs i.e. 18.98% to 682.19 lakhs in the financial year ended March 31, 2025 from 841.96 lakhs in the financial year ended March 31, 2024. Cost of material consumed is decreased due to less amount of purchases and lower value of opening stock.
Employment Benefit Expenses
Employee Benefit Expenses increased by 40.21 lakhs i.e. 4.76% to 884.39 lakhs in the financial year ended March 31, 2025 from 844.18 lakhs in the financial year ended March 31, 2024. Employee benefit expenses were increased due to increase in salaries & wages and Directors remuneration.
Finance Cost
Finance cost increased by 21.49 lakhs i.e. 9.41% to 249.89 lakhs in the financial year ended March 31, 2025 from 228.40 lakhs in the financial year ended March 31, 2024. Finance Cost primarily increased due to increase in the interest expenses as the borrowings increased during the year.
Depreciation
Depreciation has decreased by 28.39 lakhs i.e. 5.42% to 495.79 lakhs in the financial year ended March 31, 2025 from 524.18 lakhs in the financial year ended March 31, 2024. Depreciation has decreased because the Company has not purchased any new Property, Plant and Equipment in the financial year ended March 31, 2025 and moreover, the Company uses WDV method for depreciation calculation.
Other Expenses
Other Expenses increased by 338.38 lakhs i.e. 29.04% to 1,503.70 lakhs in the financial year ended March 31, 2025 from 1,165.32 lakhs in the financial year ended March 31, 2024. Other Expenses have increased mainly due to increase in discounts provided, and rental expense, which has increased because earlier the
Company had provided FDs to promoters for the rented out properties, but during the FY 2024-25, those FDs have been returned and the rent is being charged at fair market value.
Profit before Exceptional Items and Tax
Profit before Exceptional Items and Tax has increased by 533.02 lakhs i.e. 33.31% to 2,133.35 lakhs in the financial year ended March 31, 2025 from 1,600.33 lakhs in the financial year ended March 31, 2024. Profit before Exceptional Items and Tax has increased due to increase in total revenue and decrease in total expense.
Profit before Tax
Profit before Tax has increased by 533.02 lakhs i.e. 33.31% to 2,133.35 lakhs in the financial year ended March 31, 2025 from 1,600.33 lakhs in the financial year ended March 31, 2024. Profit before Tax has increased due to increase in total revenue and decrease in total expense.
Tax Expenses
Our total tax expense was increased by 175.58 lakhs i.e. 47.91% to 542.09 lakhs in the financial year ended
March 31, 2025 from 366.51 lakhs in the financial year ended March 31, 2024. Total tax expense for the year ended March 31, 2025, stood at 542.09 lakhs out of which current year tax is 538.66 lakhs, MAT credit is Nil and Deferred Tax expense is 3.43 lakhs, the Total Tax expense being 6.49% of the Total Income. Total tax expense was increased due to increase in Net Profit before Tax.
Net Profit after Tax
Net Profit after Tax has increased by 357.45 lakhs i.e. 28.97% to 1,591.26 lakhs in the financial year ended March 31, 2025 from 1,233.82 lakhs in the financial year ended March 31, 2024. Profit after Tax has increased due to increase in total revenue and decrease in total expense.
FINANCIAL YEAR 2023-24 COMPARED WITH THE FINANCIAL YEAR 2022-23 (BASED ON RESTATED FINANCIAL STATEMENTS)
Total Revenues
Total Income
Our total revenue increased by 2,117.18 lakhs i.e. 36.18% to 7,969.25 lakhs for the financial year 2023-24 from 5,852.07 lakhs for the financial year 2022-23 due to the factors described below:
Revenue of operations
Our revenue from operations increased by 2,013.24 lakhs i.e. 34.49% to 7,850.36 lakhs for the financial year 2023-24 from 5,837.12 lakhs for the financial year 2022-23. Revenue from operations has increased primarily because of increase in sales of services as compared to previous financial year. The comparative revenue breakup of the services is stated as follows:
(Amount in lakhs)
| Revenue | FY 2023-24 | FY 2022-23 |
| Cardiology | 155.91 | 100.97 |
| Neurology | 274.60 | 273.48 |
| Pathology | 2066.22 | 945.23 |
| Radiology | 5347.78 | 4515.35 |
| Urology | 5.85 | 2.09 |
| Total | 7850.36 | 5837.12 |
Other Income
The other income increased by 103.93 lakhs i.e. 695.18% to 118.88 lakhs for the financial Year 2023-24 from 14.95 lakhs for the financial year 2022-23. The increase was mainly due to profit from sale of asset for
99.25 lakhs in financial Year 2023-24.
EXPENDITURE
Total Expenses
Total Expenses increased by 604.33 lakhs i.e. 10.48% to 6,368.92 lakhs in the financial year ended March 31, 2024, from 5,764.59 lakhs in the financial year ended March 31, 2023. Our total expenses increased due to the factors described below:
Operating Expenses
The Operating expenses increased by 538.59 lakhs i.e. 24.19% to 2,764.88 lakhs in the financial year ended March 31, 2024 from 2,226.29 lakhs in the financial year ended March 31, 2023. Operating Expenses increased primarily because of increase in Medical and Testing Expenses as compared to previous financial year.
Cost of material consumed
The Cost of material consumed expenses increased by 48.07 lakhs i.e. 6.05% to 841.96 lakhs in the financial year ended March 31, 2024 from 793.89 lakhs in the financial year ended March 31, 2023. Cost of material consumed is increased due to increase in purchases and higher value of opening stock.
Employment Benefit Expenses
Employee Benefit Expenses decreased by 109.13 lakhs i.e. 13.13% to 721.78 lakhs in the financial year ended March 31, 2024 from 830.91 lakhs in the financial year ended March 31, 2023. Employee benefit expenses were decrease due to decrease in salaries, wages & other emoluments because of reduction in number of employees.
Finance Cost
Finance cost increased by 54.58 lakhs i.e. 31.40% to 228.40 lakhs in the financial year ended March 31, 2024 from 173.82 lakhs in the financial year ended March 31, 2023. Finance Cost primarily increased due to increase in the interest expenses as the borrowings have increased.
Depreciation
Depreciation has increased by 189.91 lakhs i.e. 56.81% to 524.18 lakhs in the financial year ended March 31, 2024 from 334.27 lakhs in the financial year ended March 31, 2023. Depreciation has been increased because of increase in Property, Plant and Equipment in the financial year ended March 31, 2024.
Other Expenses
Other Expenses decreased by 117.69 lakhs i.e. 8.37% to 1,287.72 lakhs in the financial year ended March 31, 2024 from 1,405.41 lakhs in the financial year ended March 31, 2023. Other Expenses has decreased mainly due to decrease in the Rental Expense, Professional Fee and Electricity Expenses.
Profit before Exceptional Items and Tax
Profit before Exceptional Items and Tax has increased by 1,512.85 lakhs i.e. 1729.31% to 1,600.33 lakhs in the financial year ended March 31, 2024 from 87.48 lakhs in the financial year ended March 31, 2023. Profit before Exceptional Items and Tax has increased due to comparative increase in total revenue than total expense.
Profit before Tax
Profit before tax has increased by 1,512.85 lakhs i.e. 1729.31% to 1,600.33 lakhs in the financial year ended March 31, 2024 from 87.48 lakhs in the financial year ended March 31, 2023. Profit before Tax has increased due to exceptional item and comparative increase in total revenue than total expense.
Tax Expenses
Our total tax expense was increased by 336.34 lakhs i.e. 1114.93% to 366.51 lakhs in the financial year ended March 31, 2024 from 30.17 lakhs in the financial year ended March 31, 2023. Total tax expense for the year ended March 31, 2024, stood at 366.51 lakhs out of which current year tax is 379.28 lakhs, MAT Credit was Nil and Deferred Tax Asset is 12.77 lakhs, the Total Tax expense being 4.60% of the Total Income. Total tax expense was increased due to increase in Net Profit before Tax.
Net Profit after Tax
Net Profit after Tax has increased by 1,176.50 lakhs i.e. 2052.68% to 1,233.82 lakhs in the financial year ended March 31, 2024 from 57.32 lakhs in the financial year ended March 31, 2023. The increase was due to exceptional item and comparative increase in total revenue than total expense.
FISCAL YEAR ENDED MARCH 31, 2023, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2022 (BASED ON RESTATED FINANCIAL STATEMENTS)
Total Revenue
Our total revenue decreased by 1,059.43 lakhs i.e. 15.33% to 5,852.07 lakhs for the financial year 2022-23 from 6,911.50 lakhs for the financial year 2022-23 due to the factors described below:
Revenue from operations
Our revenue from operations decreased by 1,056.45 lakhs i.e. 15.33% to 5,837.12 lakhs for the financial year 2022-23 from 6,893.57 for the financial year 2021-22. Revenue from operation has decreased primarily because of decrease in services as compared to previous financial year. Revenue breakup of the same is as follows:
Amount in lakhs
Revenue FY 2022-23 FY 2021-22
Cardiology 100.97 94.20 Neurology 273.48 213.86 Pathology 945.23 2922.23 Radiology 4515.35 3661.55 Urology 2.09 1.72
Total 5837.12 6893.57
Other Income
The other income decreased by 2.98 lakhs i.e. 16.62% to 14.95 lakhs for the financial Year 2022-23 from 17.93 lakhs for the financial year 2021-22. The decrease was mainly due to there has been no such sale of fixed assets occurred.
Total Expenses
Total Expenses
Total Expenses decreased by 207.23 lakhs i.e. 3.47% to 5,764.59 lakhs in the financial year ended March 31, 2023, from 5,971.82 lakhs in the financial year ended March 31, 2022. Our total expenses decreased due to the factors described below:
Operating Expenses
The Operating expenses increased by 62.76 lakhs i.e. 2.90% to 2,226.29 lakhs in the financial year ended March 31, 2023 from 2,163.53 lakhs in the financial year ended March 31, 2022. Operating Expenses increased primarily because of increase in Medical and Testing Expenses as compared to previous financial year.
Cost of material consumed
The Cost of material consumed expenses decreased by 313.19 lakhs i.e. 28.29% to 793.89 lakhs in the financial year ended March 31, 2023 from 1,107.08 lakhs in the financial year ended March 31, 2022. Cost of material consumed have decreased due to decrease in services.
Employee Benefit Expenses
Employee Benefit Expenses decreased by 58.72 lakhs i.e. 6.60% to 830.91 lakhs in the financial year ended March 31, 2023 from 889.63 lakhs in the financial year ended March 31, 2022. Due to reduction in scale of operations the cost of employees was reduced resulting in reduction of Employee Benefit Expenses in comparison to financial year ended March 31, 2022
Finance Cost
Finance cost decreased by 20.41 lakhs i.e. 10.51% to 173.82 lakhs in the financial year ended March 31, 2023 from 194.23 lakhs in the financial year ended March 31, 2022. Due to reduction in operations borrowing and credit requirement decreased which resulted in reduction in finance cost.
Depreciation
Depreciation has decreased by 17.09 lakhs i.e. 4.86% to 334.27 lakhs in the financial year ended March 31, 2023 from 351.36 lakhs in the financial year ended March 31, 2022. Due to life span of machinery , depreciation has decreased.
Other Expenses
Other Expenses increased by 139.42 lakhs i.e. 11.01% to 1,405.41 lakhs in the financial year ended March 31, 2023 from 1,265.99 lakhs in the financial year ended March 31, 2022. Other Expenses has increased mainly due to increase in the Professional fees.
Profit before Exceptional Items and Tax
Profit before Exceptional Items and Tax has decreased by 852.20 lakhs i.e. 90.69% to 87.48 lakhs in the financial year ended March 31, 2023 from 939.68 lakhs in the financial year ended March 31, 2022. Profit before Exceptional Items and Tax has decreased due to higher comparative increase in total expenses than total revenue.
Profit Before Tax
Profit before tax has decreased by 852.20 lakhs i.e. 90.69% to 87.48 lakhs in the financial year ended March 31, 2023 from 939.68 lakhs in the financial year ended March 31, 2022. Profit before Tax has decreased due to higher comparative increase in total expenses than total revenue.
Tax Expense
Our total tax expense was decreased by 279.30 lakhs i.e. 90.25% to 30.17 lakhs in the financial year ended March 31, 2023 from 309.47 lakhs in the financial year ended March 31, 2022. Total Tax Expense for the year ended March 31, 2023, stood at 30.17 lakhs out of which current year tax is 47.17 lakhs, MAT Credit was Nil and Deferred Tax Asset is 17.00 lakhs, the Total Tax expense being 0.52% of the Total Income. Total tax expense was decreased due to decrease in Net Profit before Tax.
Net Profit After Tax
Net Profit after Tax has decreased by 572.90 lakhs i.e. 90.90% to 57.32 lakhs in the financial year ended March 31, 2023 from 630.21 lakhs in the financial year ended March 31, 2022. The decreased was due to higher comparative increase in total expenses than total revenue.
RELATED PARTY TRANSACTIONS
Related party transactions with certain of our promoters, directors and their entities and relatives primarily relate to Directors Remuneration, Interest on Loan , and Rent of Business Premises & any sale or purchase of services . For further details of related parties kindly refer chapter titled "Financial Information" beginning on page 230 of this Red Herring Prospectus.
INFORMATION REQUIRED AS PER ITEM (II) (C) (IV) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:
1. Unusual or infrequent events or transactions
Except as described in this Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations
Other than as described in the section titled Risk Factors beginning on page 29 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations
Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and
Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 29 and 295, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.
4. Income and Sales on account of major product/main activities
Income and sales of our Company on account of major activities derives from Sale of Diagnostic Services
5. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.
Our Companys future costs and revenues can be indirectly impacted by an increase in employees benefit costs as the company require more employee in future.
6. Future relationship between Costs and Income
Our Companys future costs and revenues will be determined by competition, demand/supply situation, Indian/ State Government Policies, foreign exchange rates and interest rates quoted by banks & others.
7. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.
Increases in our revenues are by and large linked to increases in the volume of business.
8. Total turnover of each major industry segment in which the issuer company operates.
The Company is operating in Healthcare Industry. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 119 of this Red Herring Prospectus.
9. Status of any publicly announced new products or business segments.
Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Red Herring Prospectus.
10. The extent to which the business is seasonal
Our business is not seasonal in nature.
11. Competitive Conditions
We face competition from existing and potential competitors which is common for any business. Over a period of time, we have developed certain competitive strengths which have been discussed in section titled Business Overview on page 139 of this Red Herring Prospectus.
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