Metropolis Healthcare shares rose over 2% in early morning trade as the company logged core business revenue growth of 12% YoY for the April-June quarter.

According to the company filing, the core business excluded revenue contribution from COVID and connected tests and PPP (Public Private Partnership) contracts. The company also saw 13% volume growth in the quarter under review.

Revenue per test for the core business increased 3% YoY in Q1.
Moreover, the company’s revenue business-to-consumer segment also rose 12% YoY.

At 09.24 am, Metropolis Healthcare shares traded 1.3% higher at Rs 1,455.50 on the NSE.

Aside from business growth, the diagnostic business’s total revenue from operations (with COVID and related tests and PPP contracts) for the quarter was slightly down as against the previous fiscal, mainly due to COVID contribution and business-to-government contracts.

The company was expansion spree from the previous fiscal, increasing its product offerings, offering into newer geographies, and encompassing its digital presence as it aims to lift its non-COVID revenues.

Even though the diagnostics chain witnessed pricing pressure in the wellness section from new-age online players, the management believes its strong brand name in the illness segment will safeguard its financials. The illness segment underwrites over 90% of the company’s total revenue.