Thyrocare Q4 Review - Margins Subdued Despite Growth Recovery: ICICI Securities

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ICICI Securities Report

Thyrocare Technologies Ltd. reported largely inline results during Q4 FY21 with non-Covid-19 business normalising to pre-Covid-19 levels.

Revenue grew 44.8% YoY to Rs 1.5 billion (our estimate: Rs 1.5 billion).

Ebitda margin grew 460 basis points YoY (down 80 basis points QoQ) to 35.1% (our estimate: 36.5%).

The company conducted 0.39 million Covid-19 tests which contributed ~14% to total sales in Q4 FY21 which has declined QoQ from ~20%.

Regular pathology business witnessed a volume growth of 28% in the number of samples on a low base of last year with easing of lockdown.

Although base business is recovering, recent surge in Covid-19 cases leading to partial lockdown could limit growth in the near term.

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