Thyrocare Tech is down 3% after reporting dismal first-quarter profits

Thyrocare Technologies shares decreased more than 3% in early trade on August 2, a day after the business disclosed weak earnings for the April-June quarter FY24, resulting in a drop in profit and profitability.

The diagnostics company's net profit for the first quarter fell 20.3% YoY to Rs 17.30 crore, down from Rs 22 crore in the previous year. Despite a 5.6% YoY increase in revenue to Rs 134.9 crore in April-June, the bottom line fell.

The company attributed the slow growth to the closure of a contract from Municipal Corporation of Greater Mumbai (MCGM) and a drop in its API (Active Pharmaceutical Ingredients) business.

Furthermore, the operating profit margin, or EBITDA margin, remained under pressure, falling to 25.4% in April-June from 28.2% in the previous fiscal quarter.

In the future, the company intends to expand internationally by bringing its business-to-business approach to new regions to provide diagnostics solutions.

On August 1, the company also announced that it has gained National Accreditation Board for Testing and Calibration Laboratories (NABL) certification for nine more processing laboratories in Bhopal, Guwahati, Bangalore, Chennai, Patna, Bhubaneswar, Raipur, Lucknow, and Ranchi.

Thyrocare currently has 18 NABL-accredited laboratories across India, accounting for 64% of its overall lab network, with the number projected to grow further.

Source: Media Reports