Metropolis Network Expansion and Revenue Growth Strategy slide image

Metropolis Network Expansion and Revenue Growth Strategy

6. Reported EBIDTA Margins @ 22.5% 25.5% -0.4% Q3FY23 Reported EBIDTA EBIDTA dilution on account of Network Expansion in Q3FY24 @1.2% EBIDTA dilution on account of Network Expansion in Q3FY23 @0.8% Net impact on account of dilution 0.4% -1.4% -0.8% -0.4% METROPOLIS The Pathology Specialist 22.5% Dilution on account of Network Expansion Dilution on account of loss of PPP revenue Dilution on account of one time PDD Others Q3FY24 Reported EBIDTA Impact on Margins on account of: Negative operating leverage on account of loss in revenue from a large PPP contract Negligible Covid & Allied Revenue; however related cost from the previous year persist in the system Dilution of EBIDTA margins ~120 bps in Q3FY24 is on account of Aggressive Network Expansion strategy One time impact of ~80 bps on account of Provision for Doubtful Debt (PDD) adjustment Additional Impact on Margins on account of : • Increased cost on Marketing Increased cost on Information Technology Increased cost on customer service Combination of higher productivity of new network, increased utilization of labs, higher operating leverage along with organic growth should result in an uptick in margins from current levels 15
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