Metropolis Healthcare shares surge over 7.5% to a new 52-week high on strong Q4 business update

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Metropolis Healthcare, one of the leading Indian diagnostics companies, spiked 7.54% in today's intraday session to hit a new 52-week high of ₹1,935 apiece after investors reacted positively to the company's Q4 business, which was released on April 10, post-market hours. The company during the fourth quarter of last fiscal year recorded around a 10% YoY increase in overall revenue, alongside 15% YoY growth in revenue for its core business, maintaining a consistent rise in sales volumes across various segments.

Also Read: US Federal Reserve signals interest rate cuts in 2024 second half: Should you invest in debt funds? Core Revenue (excluding revenue from Covid, Covid Allied Tests, and PPP Contracts) growth was driven by volume growth of approximately 8% and RPP growth of 7% YoY for Q4 FY24. RPP growth was largely driven by growth in the specialty tests segment, premium wellness segment, and price increase.

The company's B2C revenues grew 18% YoY for Q4 FY24. During the current quarter, the company has repaid debt, resulting in a debt-free status as of March 31, 2024.

The company stated that competition intensity has been easing over the past 6 to 12 months, particularly as new industry entrants prioritize unit economics and profitability over deep discounting strategies. Also Read: Moody's affirms India's ‘Baa3’ stable rating, projects growth over 6% for 2 yrs However, competition remains moderate in specific pockets of metropolitan markets, particularly within the B2B segment.

Despite this competitive environment, the company has enhanced its market share in its core geographies and is successfully expanding its presence in newer territories with an aggressive lab and network expansion strategy. The company's