{"id":22308,"date":"2022-10-20T12:29:57","date_gmt":"2022-10-20T06:59:57","guid":{"rendered":"https:\/\/flattrade.in\/kosh\/?p=22308"},"modified":"2022-10-20T12:31:34","modified_gmt":"2022-10-20T07:01:34","slug":"diagnostic-firms-sales-may-fall-7-in-fy23-as-the-pandemic-eases-says-crisil","status":"publish","type":"post","link":"https:\/\/flattrade.in\/kosh\/diagnostic-firms-sales-may-fall-7-in-fy23-as-the-pandemic-eases-says-crisil\/","title":{"rendered":"Diagnostic firms\u2019 sales may fall 7% in FY23 as the pandemic eases, says Crisil"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"22308\" class=\"elementor elementor-22308\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1efa1ae9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1efa1ae9\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-38c2a725\" data-id=\"38c2a725\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-788c2244 elementor-widget elementor-widget-text-editor\" data-id=\"788c2244\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Revenues of diagnostic companies are expected to decline 5-7% in this fiscal as the pandemic intensity wanes due to fall in covid-19 cases along with consumers preferring self-test kits, according to a report by Crisil. This is in contrast with the strong growth of 30% last year due to severe Covid-19 wave and higher demand for regular tests.<\/p>\n<p>The report said that operating margin of the diagnostic companies is expected to decrease to pre-pandemic levels of 24-25% due to lower revenue and higher operating expenses, mainly, marketing and advertisement spending. This is in contrary to higher realization last year from Covid-19 related tests and better operating leverage leading to higher operating profitability of about 28%.<\/p>\n<p>Anuj Sethi, Senior Director, CRISIL Ratings, said, \u201cThe revenue share of Covid-19 tests has fallen to low-to-mid single-digit in the first half of this fiscal. This shortfall will be partly compensated by 12-14% increase in revenue contribution from regular tests in both existing geographies and from expansion into tier-2 and 3 cities.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dbcb435 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dbcb435\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5d4a4d1e\" data-id=\"5d4a4d1e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-51dd3e2b elementor-widget elementor-widget-heading\" data-id=\"51dd3e2b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>New Competition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-774ddbbd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"774ddbbd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-18fc5b8b\" data-id=\"18fc5b8b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f53b4aa elementor-widget elementor-widget-text-editor\" data-id=\"f53b4aa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The report noted that a new trend is emerging as there is increasing competition from online pharmacy players offering tests, mainly, in the wellness segment of regular tests. These tests by online pharmacy typically do not involve doctor prescription or referrals. The online pharmacy have tied up with regional labs for conducting such tests, thereby, reducing the cost of maintaining a physical infrastructure of their own.<\/p><p>To counter this competition, established diagnostic players, who generate 10-12% of revenues from wellness tests, have increased investments in digital infrastructure and home-collection services. In addition, the diagnostic players have also increased marketing and advertisement spending to reinforce its brand recall and awareness on quality.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-546e8bd2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"546e8bd2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4cca33a7\" data-id=\"4cca33a7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ae443c3 elementor-widget elementor-widget-heading\" data-id=\"ae443c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Financial Health<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3a5992e0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3a5992e0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-486f67e4\" data-id=\"486f67e4\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-76dbcf7e elementor-widget elementor-widget-text-editor\" data-id=\"76dbcf7e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Crisil opined that diagnostic players will have stable credit profiles helped by good cash generation, prudent capital spends and low debt levels. This is after the rating agency studied 11 diagnostics companies that had a total sales of Rs 6,500 crore in the last fiscal.<\/p><p>Moreover, strong liquidity and positive cash flow will be sufficient to meet the capital expenditure requirements of diagnostic players. The rating agency said that the capex requirement will not be high as major investments will be towards laboratory equipments. Therefore, debt levels of diagnostic players are expected to remain low, resulting in healthy balance sheets.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-61ed4d2b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"61ed4d2b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-73800ee2\" data-id=\"73800ee2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-33894928 elementor-widget elementor-widget-heading\" data-id=\"33894928\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Stocks To Watch<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-30376719 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"30376719\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-418cd13c\" data-id=\"418cd13c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5242c72a elementor-widget elementor-widget-text-editor\" data-id=\"5242c72a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Some of the stocks to watch out for in this space are as follows: Dr. Lal Pathlabs, Metropolis Healthcare, Vijaya Diagnostic Centre, Thyrocare Technologies, Krsnaa Diagnostics, Sastasundar Ventures (parent of Flipkart Health+), Vimta Labs, Jeevan Scientific Technology, Aspira Pathlab &amp; Diagnostics, Choksi Laboratories, Medinova Diagnostic Services.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2e31e26f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2e31e26f\" 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class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Open a Free Demat Account<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"Revenues of diagnostic companies are expected to decline 5-7% in this fiscal as the pandemic intensity wanes due&hellip;","protected":false},"author":5,"featured_media":22312,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"footnotes":""},"categories":[65],"tags":[46,43,78,48,26,601,77,47,24,23,598],"class_list":{"0":"post-22308","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-industry","8":"tag-market-news","9":"tag-market-update","10":"tag-nifty","11":"tag-nifty-today","12":"tag-nse","13":"tag-pandemic","14":"tag-sensex","15":"tag-sensex-today","16":"tag-share-market","17":"tag-stock-market","18":"tag-testing-labs","19":"cs-entry","20":"cs-video-wrap"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Diagnostic firms\u2019 sales may fall 7% in FY23 as the pandemic eases, says Crisil - Flattrade Kosh<\/title>\n<meta name=\"description\" content=\"Revenues of diagnostic companies are expected to decline 5-7% in this fiscal as the pandemic intensity wanes due to fall in covid-19 cases along with consumers preferring self-test kits, according to a report by Crisil.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/flattrade.in\/kosh\/diagnostic-firms-sales-may-fall-7-in-fy23-as-the-pandemic-eases-says-crisil\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Diagnostic firms\u2019 sales may fall 7% in FY23 as the pandemic eases, says Crisil - Flattrade 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