Metropolis Healthcare clocks 20 pc drop in Q4 net profit, expenses up

IANS May 14, 2025 228 views

Metropolis Healthcare, led by Ameera Shah, reported a notable 20% drop in net profit for Q4 FY25, despite an increase in revenue. The company’s profits were impacted by a rise in expenses, which increased by 11.74%, outpacing revenue growth. Although the quarterly results were challenging, Shah expressed confidence in the company's long-term growth strategy, highlighting investments in technology and network expansion. Metropolis is also focusing on enhancing its B2C presence to drive future growth, though shares dipped 4.95% in response to the quarterly performance.

"Metropolis has been actively investing in expanding its network of laboratories, technology, and talent." - Ameera Shah
Mumbai, May 14: Ameera Shah-led diagnostics chain Metropolis Healthcare has reported a 19.96 per cent drop in its consolidated net profit for the fourth quarter of the financial year (Q4 FY25), as expenses shot up in the period.

Key Points

1

Net profit falls to Rs 29.23 crore, reflecting a 20% decrease

2

Revenue rose by 4.13% to Rs 345.29 crore in Q4 FY25

3

Operating costs rose by 11.74%, affecting profitability

4

Metropolis remains optimistic about long-term growth and B2C expansion

The company’s net profit declined to Rs 29.23 crore in January-March quarter from Rs 36.52 crore in the same period last year (Q4 FY24), according to its filing with the stock exchanges.

The fall in profit came despite a rise in revenue. The diagnostics chain posted a 4.13 per cent increase in revenue from operations, which stood at Rs 345.29 crore in Q4, compared to Rs 331 crore in the year-ago quarter.

However, higher operating costs weighed on the bottom line. Total expenses during the quarter rose by 11.74 per cent year-on-year (YoY), reaching Rs 316.21 crore, up from Rs 283 crore in the corresponding quarter last fiscal.

Among the key cost components, the cost of materials consumed increased by 6.62 per cent to Rs 71.53 crore, while employee benefits expense jumped 15.01 per cent to Rs 82.19 crore from Rs 71.46 crore in the same quarter last fiscal.

The increase in expenses outpaced revenue growth, putting pressure on the company’s profitability in the March quarter.

However, for the full fiscal year 2025 (FY25), Metropolis Healthcare reported a net profit of Rs 146 crore, marking a rise from Rs 128 crore in FY24.

Despite the dip in quarterly profit, Metropolis remains optimistic about its long-term growth strategy.

Shah, as Chairperson and Whole-time Director of the company, emphasised the company’s resilience and future readiness, stating, “Metropolis has been actively investing in expanding its network of laboratories, technology, and talent.”

She added that despite a challenging environment, the company has seen significant improvements in customer engagement and operational efficiency.

“Metropolis is also focusing on expanding its B2C presence, which it believes will contribute significantly to its next phase of growth,” Shah mentioned.

Meanwhile, the shares of Metropolis Healthcare were trading 4.95 per cent or Rs 84.2 lower at Rs 1,617.40 on the National Stock Exchange (NSE) on Tuesday.

Reader Comments

R
Rahul K.
Not surprising given how competitive the diagnostic space has become. With so many new players like Dr Lal Pathlabs and Thyrocare expanding aggressively, Metropolis needs to up their game. Their service quality is good but pricing needs to be more competitive. Hope they bounce back next quarter! 💪
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Priya M.
Employee benefits expense up by 15% is actually a good thing - shows they're investing in their workforce. In healthcare, skilled technicians and pathologists are everything. Short term pain for long term gain maybe? 🤔
A
Amit S.
As a shareholder, I'm concerned about the rising costs. The management needs to explain how they plan to control expenses while expanding. The B2C focus is good but execution will be key. The stock price drop reflects market disappointment.
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Sneha R.
I've been using Metropolis for years and their reports are always accurate. Hope this profit drop doesn't affect service quality. Maybe they should introduce more combo packages for regular health checkups to attract more customers like me!
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Vikram J.
The healthcare sector is going through tough times with rising input costs. At least their annual profit is up - that shows resilience. Ameera Shah has steered the company well through COVID, she'll handle this too. Long term investors should hold.
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Neha P.
Interesting that revenue grew but profits fell. Shows how thin margins are in diagnostics business. They need better cost control - maybe use more technology to reduce manual processes? The 4% stock drop seems like an overreaction though.

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Metropolis Healthcare Ameera Shah Q4 FY25 Results Net Profit Drop Diagnostics Industry