Thyrocare®

The Trust. The Truth.

February 20, 2021

To,
National Stock Exchange of India Limited BSE Limited
Exchange Plaza Phiroze Jeejeeboy Towers
Sandra Kurla Complex, Dalal Street,
Sandra (E), Mumbai - 400 051 Mumbai- 400 00 I

Dear Sir/Madam,

Sub: Disclosure of information under Regulation 30 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

--o--

Pursuant to Regulation 30 of SEBJ (Listing Obligations and Disclosure Requirements)

Regulations, 2015, we are filing herewith the transcript of the Earnings Call held on Thursday,
February 04, 2021 at 05.00 P.M. local time, post declaration of the Company's unaudited financial
results (Stand-alone and Consolidated) for Quarter /Nine Months ended December 3 I, 2020. This
transcript is also made available at our website.

Dr. A. Velumani, Chairman & Managing Director, Mr. Arindam Haldar, CEO, Mr. A. Sundararaju,
CFO & Executive Director, Mr. Sachin Salvi, Vice-President- Finance, represented the Company.

Yours Faithfully,
For Thyrocare Technologies Limited,

Ramjee Dorai
Company Secretary and Compliance Officer

Thyrocare Technologies Limited

9 0-37/1, TTC MIDC, Turbhe, Navi Mumbai -400 703, India (9 022- 3090 0000 / 4125 2525
� enquiry@thyrocare.com @) www.thyrocare.com (CIN: L85110MH2000PLC123882)
“Thyyrocare Technologiess Limiteed Q3F
FY21 Earnings
E s
Conferen nce Calll hosteed by Nomura
N Securitties”
F
Februar
ry 04, 20021

MANAG
GEMENT: DR. A. VELUMAN NI, PH.D. – CHAIR
RMAN & MANAGING G
DIRECTOR, THYR ROCARE TECHNOLO OGIES LIM
MITED
MR. ARINDAM
R HALDAR – CHIEF EX XECUTIVEE OFFICER
R,
THYROC CARE TECCHNOLOG GIES LIMIT
TED
MR. A. SUNDARA ARAJU – CHIEF FINANCIAL OFFICER &
EXECUTTIVE DIRE ECTOR, THYROCARE TECH HNOLOGIE ES
LIMITEDD
MR. RAMJEE DORAI – COMPPANY SECRETARY E Y,
THYROC CARE TECCHNOLOG GIES LIMIT
TED
MR. SACHIN
A SA
ALVI – VICE PRE ESIDENT, FINANCEE,
THYROC CARE TECCHNOLOG GIES LIMIT
TED
DR. CAESAR SENGUPT TA – VICE PRESIDENT T,
OPERATTIONS, THYROCARE
H E TECHNOOLOGIES LIMITED

MODER
RATOR: MR. PRA
ATEEK MANDHANA
A – NOMU
URA SECUR
RITIES
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Moderatoor: Ladies and gentlemen ggood day and welcome to the

t Thyrocaree Technologiees
Limited Q33 FY'21 Earnnings Confereence Call hosted by Nom
mura Securitiees.
As a reminder, all particcipant lines will
w be in the llisten-only mo
ode. There wiill
be an oppo
ortunity for yyou to ask questions after the presentattion concludees.
Should youu need assisstance during
g the confereence call, pleease signal an
a
operator byy pressing ‘*’ then ‘0’ on
n your touchtoone phone. Please
P note thhat
this call is being
b recordeed. I now hand over the conference call to Mr. Prateeek
Mandhana from Nomuraa Securities. Thank
T you annd over to youu sir.

Prateek Mandhana:
M Thank youu. Good evening, all. On behalf
b of Noomura Securitties, we wouuld
like to wellcome all to Thyrocare Technologies L
Limited 3QF
FY'21 Earninggs
Call.

Today, froom the Thyroocare manageement team, we have with us, Dr. A
A.
Velumani- Chairman &
&Managing Director; Mr. A
Arindam Halddar- CEO; Mr.
M
A. Sundaraaraju- CFO & Executive Director; Mrr. Ramjee Doorai- Companny
Secretary; Mr. Sachin Salvi- Vicee President, Finance an
nd Dr. Caesar
Sengupta- Vice
V Presidennt, Operationss.

So now without any furrther delay, I would like tto hand over the call to Mr.
M
Sachin Salvvi to give an update on the Financials ffor Thyrocaree. Over to yoou,
Mr. Salvi.

Sachin Sa
alvi: Thank you,, Prateek, andd good eveninng. Thank yoou, everyone for joining ouur
Post Resultts Conferencee Call for Quaarter ended 311st Decemberr 2020.

I will brieefly update you about the Key Hiighlights of Q3 Financiial

Performancce. First, I w
will start withh revenue froom operationss. Our revenuue
from operaations for the current quartter on standaalone basis haas increased by
b
about 35% YoY. Our consolidated
c q
quarterly reveenue for the current quartter
has increassed by about 31% YoY. Our
O Q3 Pathoology revenuee of Rs.132.117
crores connsists of Rs.27.32 crores of COVID
D RT-PCR revenue. Ouur
Pathology revenue exclluding COVIID RT-PCR for the curreent quarter has
grown by about
a 7%-oddd in Q3. This despite of thhe lean periodd on account of
o
festivities which
w we geenerally evideence in everyy year. We have
h seen verry
healthy revvival in preveentive care business
b too in the currennt quarter. Ouur
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

business in Pathology seegment as well as Radiologgy segment also has reviveed

well in thee current quarrter as compaared to Q2. Our
O Q3 Radiology segment
revenue is at Rs.6.16 crrores, again, as I said, we have revivedd very good in
the current quarter. Ourr Radiology reevenue has reevived to the extent to 78%
when I'm comparing Q
Q3 numbers of the last financial yeear. As far as
a
EBITDA margin
m is conncerned, our standalone
s EB
BITDA marggin on adjusteed
basis norm
malized for the non-opeerating expennses stands at 37%. Ouur
consolidateed EBITDA m
margin stands at 36%, adjuusted and norm
malized for thhe
non-operatiing expenses.. Our standalone EBITDA
A margin of Rs.49.16
R crorees
has grown by
b about 15%
% YoY. Simillarly, consoliddated EBITDA margin havve
grown by about
a 13% YooY.

mployees’ benefits expen

We have seen increasse in the em nses, and I'm
comparing with a percenntage to the top
t line, it haas increased by
b about 2% to
the top linee in a sequenntial quarterss. This is on account of additional
a field
marketing resources whhich we havee deployed iin the currennt quarter. Ouur
T-PCR revenuue has actuallly contractedd by about 400%, though thhe
COVID RT
volume haas increased by 6%, maiinly on accoount of the stringent
s pricce
controls whhich have beeen implementted by most oof the state goovernments. In
I
terms of voolumes, we haave processedd in the curreent quarter about 4.7 millioon
samples. Same quarter last year wee have processsed about 4..5 million. We
W
have perforrmed 4,691 sscans under our
o Radiologyy division, thhat is Nueclear
Healthcare Limited, sam
me period last year we have
h processeed about 5,7772
scans. We have done abbout 2,92,321 COVID RT-PCR tests inn Q3 alone annd
we have doone about 1.611 lakhs COVIID antibody ttests in the currrent quarter.

With these brief highligghts, I'll pass it on to our CEO, Mr. Arindam
A Halddar
for Businesss Updates to the Investorss. Thank you.

Arindam
m Haldar: Thank you,, Sachin and good evening
g to everyonee on the call, and thank yoou
for joining us today. W
We are past yeear 2020, andd with the earrly signals thhat
are comingg in, I do hoppe this New Year
Y brings iin happier neews, health annd
prosperity for
f all of youu. We are thannkful that Inddia did not seee another peaak
after the festive
f seasonn as was widely
w proclaiimed. And maybe
m it's ouur
inherent im
mmunity or maaybe it's the low
l mean agee of the counttry, case counnts
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

are at an alll-time low, rrecovery ratee is now highher than the new
n case couunt
every day and
a mortalityy rate hasn't even
e crossed 1.5%, far low
wer than manny
other diseasses prevailingg in the counttry. In betweeen, Thyrocare has completeed
another succcessful quarrter, sustaininng and above par revenue growth whicch
you heard of, of 35%
% for standaalone patholoogy businesss and 31% at
consolidateed level, and oour standalonne EBITDA sttands at 37% for Path and at
consolidateed at 36%.

You may reecollect that our

o Path businness grew byy 38% year-on
n-year in Q2 of
o
FY'21. Annd while thee growth perrcentage has dipped sligghtly by threee
percentage points, I'm happy to an
nnounce that our non-CO
OVID businesss,
without all COVID andd COVID-relaated tests havve come backk to last yearr's
level, whichh was in last quarter arounnd 80% againnst the same quarter.
q In facct,
our COVID
D and COVIID related tessts consolidaated revenue has dipped by
b
47% in seqquential quarrter, which iss Q3 by Q2, whereas ou
ur non-COVIID
business haas demonstraated a signifi
ficant and robbust 17% grrowth over thhe
trailing quaarter. This auggurs well for all future perriods. Our CO
OVID RT-PC
CR
revenues have
h come doown significantly. So despite our RT
T-PCR volum
me
going up by
b 6%, our rrevenue realiized fell by 43% in sequuential quarteer,
thanks to the
t drastic pprice controlss that we all know aboutt. This had an
a
adverse efffect on our coost of materiaals consumed as a percentaage of revenuue,
which furthher impacted our EBITDA
A, and our staandalone EBIITDA grew by
b
15% and ou
ur consolidateed EBITDA grew
g by 13% against the saame period laast
year.

Let me noow give youu some moree color on ssome significcant “Business
Updates.” First,
F let me ttalk about thee “Preventivee Care Busineess.”Aarogyaam
is the leadiing brand of preventive caare packages and profile in the countrry.
And this was
w severely impacted duuring peak pandemic.
p We have seen a
significant revival and iin Q3Aarogy
yam has contrributed to 466% of our nonn-
COVID buusiness. In poost-COVID normal,
n we beelieve that peeople's attitudde
towards asssessing self-im
mmunity and doing frequeent preventivee checkups wiill
increase an
nd we are veryy well poised
d as a companny to cater to that need at an
a
affordable cost.
c
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Talking about “Processiing Labs,” ass a company, we used to have

h one largge
centralized processing laab at Navi Mumbai.
M Our sstrategy, as sp
pelt out by ouur
chairman inn last quarterr, was to havve three Zonaal Processing Labs in nortth,
south and east
e of India. I'm happy to announce thaat our Zonal Processing
P Laab
at Delhi NC
CR has comm
menced operaation. Our Souuth Zonal Laab at Bangalore
is expectedd to commissioon in Q4 and Kolkata Zonnal Processingg Lab in East in
Q1 of next fiscal.

m the zonal laabs, we are also

Apart from a increasinng Regional Processing
P Laab
span. We are
a ready to coommence opeeration at Luccknow and Koochi in Q4. We
W
are also in
n the process of identifyin
ng few otherr cities, whicch has volum
me
potentials for
f setting up more regionaal processing laboratories.

Now, talkinng about “Saales and Mark

keting Structuure.” In the laast quarter, w
we
initiated pu
utting in plaace field salees executivess and managgers across thhe
country. Thhis was againn a first for Thyrocare ass we never had
h field-baseed
marketing executives. W
We have withh us today m
more than 1200 member teaam
who have already
a startedd visiting clieents and we aare constantlyy adding to thhat
strength. We
W have madee some early progress overr the last 40-ddays where w
we
could add more
m than 50 Thyrocare seervice providers, that's thee name we givve
to our francchisee collecttion centers, which is 10%
% of our basee, and we havve
an aggressiive plan to doouble our preesence in this segment oveer this calenddar
year. As you
y know, tyypically, colllection centers takes abo
out nine to 12
1
months to stabilize, so I believe this aggression in improving
g our presencce
through colllection centeer will bear uss results by ennd of 2021 annd in early paart
of calendarr 2022.

On the “Raadiology Bussiness” after lockdown,

l m
most of our PE
ET CT centeers
have becom
me fully funcctional and seeeing walk-ins. Revenues have increaseed
by 30% in sequential quuarter, while we
w are yet to go back to laast year's leveel;
however, we
w are seeing strong recovvery and hopeeful of improoving further in
current quaarter.

In summaryy, as we look forward, I beelieve that with enhanced focus

f on health
and health infrastructuree in the counntry, as was very
v well elab
borated by ouur
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Hon'ble Fiinance Minisster, private healthcare, aand specificaally diagnosttic

industry will
w see positiive uptrend going
g forwardd. The saliennce of COVIID
tests to totaal may come down, but no
ot go away. A
And the rest of
o the businesss,
especially preventive
p seegment, will see significannt growth. Thank you verry
much.

Moderatoor: Thank you very much. We will now

w begin the quuestion-and-aanswer sessioon.
The first question
q is from the line of Sriram Raathi from IC
CICI Securitiees.
Please go ahead.
a

Sriram Rathi:
R Firstly, onee thing is thaat if I just loook at the reveenue excludin
ng COVID annd
antibody teests, so that has
h grown arround 1%, buut there has been
b a volum
me
drop of aro
ound 5% and realization growth
g of aroound 7%. So this realizatioon
growth of Rs.232
R per saample, seems to be very high in the seveeral quarters in
the past. Is this sustainabble or anythinng in particulaar has led to this?
t

Arindam
m Haldar: old you, our preventive business
So, as I to b has been going ahead and ouur
realization in our preveentive packagges is higherr than standalone test. I do
d
believe thaat there will be
b uptrend to
owards people in India takking more annd
more preveentive packagges, and we are
a quite connfident about sustaining thhis
kind of reveenue in futuree.

Sriram Rathi:
R We have no
ot taken any pprice increasee as such, righht?

Arindam
m Haldar: No, we havve not taken any
a price increease.

Sriram Rathi:
R Just on thee second whhich you alluuded in the oopening remaarks about thhe
collection centers
c that yyou've started and more peeople you havve taken, if yoou
can throw more
m light onn that what kinnd of collectiions centers, will
w it be in thhe
Thyrocare'ss name only oor it will be like
l outsourceed to some thhird-party, hoow
this will takke off?

Arindam
m Haldar: So, these are
a what we ccall “Thyrocaare Service Prroviders”, theese are brandeed
collection centers, thesse are franchhisee operateed, and thesee are brandeed
exclusive centers
c for Thhyrocare, will be doing coollections alo
one, which wiill
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

go to the nearest
n processsing lab andd for higher end
e tests it wiill come to thhe
zonal or thee centralized pprocessing laabs.

Sriram Rathi:
R Is it fair to assume that this
t could be a move towarrds becomingg going towardds
B2C also inn addition to w
what we havee been doing??

Arindam
m Haldar: Not necessaarily. We do hhave about cllose to 500 coollection centers which havve
been operatting and that'ss where I talkked about the 10% increasee, about havinng
50 new of course cominng in. Here, our
o main foccus is still wo
orking with thhe
franchisee partner.
p So, itt is the franchhisee partners who are still the face to ouur
customer. We
W still remaain in the kitcchen. So ourr front end is the franchiseee
partners. Our accessibiliity in the mark
ket will increase via the fraanchise.

Sriram Rathi:
R One questiion to Sachinn. This perso
onnel costs which
w has inccreased in thhis
quarter, is this
t the run raate that we should take going forward?

Sachin Sa
alvi: No, as sir has
h said in hiss opening rem
marks, we alreeady have about 150 peopple
working on
n the field andd the team is set
s up. Now, this will not increase
i in thhat
proportion unless we reqquire new peoople to hire.

Sriram Rathi:
R This quarteer expense, that is somethinng that is a noormal rate now
w?

Sachin Sa
alvi: Yes, that would
w be someething normall thing.

Moderatoor: Thank you. The next quuestion is fro

om the line of
o Rushabh Sharedalal from
Pravin Ratiilal Share andd Stock Brokeers Limited. P
Please go aheaad.

Rushabh Sharedalal: I just wantted to know that the currrent RT-PCR

R revenue iss Rs.27 crorees,
which rougghly accounts for 20% of thhe total revennue. So what kind
k of produuct
mix do youu see going foorward let's say two or thrree quarters down
d the line,, I
mean, could
d it still accouunt for at leasst 5% to 10% of our top linne?

m Haldar:
Arindam Well, I can
n talk about the past beccause I wish there is som
meone who caan
exactly preedict which direction
d it wiill go. Last quarter,
q all ouur COVID annd
COVID rellated tests putt together wh
hich is your anntigen antibody, COVID, D
Dimer, IL--6, all put toogether had 44%
4 saliencee. This quarteer, it has 24%
salience, ou
ut of which 20%,
2 as you rightly
r said, iis RT-PCR. Now,
N frankly,, I
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

don't think it will becom

me zero. How
wever, whethher it will be 5% or 10% or
o
15%, frankkly, it will be eextremely diffficult for us tto comment on
o the same. So
S
won't be abble to give youu exact numb
ber.

Rushabh Sharedalal: Just wanted to understaand that our COVID revvenue does not
n include thhe
antibody teests, right, thhe antibody tests are incluuded in our actual revenuue
only, is myy understandinng correct?

m Haldar:
Arindam Yes, so Rss.27 crores iff you're talkin
ng about, thaat is only CO
OVID RT-PCR
R,
antibody will
w be anotherr Rs.4-odd croores.

Rushabh Sharedalal: Antibody will

w keep com
ming even after COVID hass subsided…??

m Haldar:
Arindam It can evenn go up as well, because affter you take the second doose of vaccinne,
the only waay to know w
whether you haave developedd antibody is to do antiboddy
test, so direectionally, thee antibody tesst can go up as well post vaaccination.

Moderatoor: Chandramouli Muthiah from

Thank you. The next quuestion from the line of C
Goldman Sachs.
S Please go ahead.

Chandramouli Muthiiah: Firrst question iis back to thhe point thatt was made earlier arounnd
preventive testing and Aarogyam,
A m
maybe there's going to be a shift to thhat
post-COVID. So I thinkk there has been similar coommentary cooming out from
some of yoour peers as well.
w So just trying to undderstand Aaroogyam, I thinnk,
historicallyy has been cloose to 50% off company revvenues. So, is there a plan to
maybe grow
w that faster nnow that therre could be thhis sort of shifft towards succh
packages?

m Haldar:
Arindam See, Aaroggyam is clearlyy a focus areaa, Chandramoouli, and evenn in the current
month, therre is a specifiic focus that we
w have in onne of the Aarrogyam profille,
and going forward,
f we'lll be keeping that
t focus on. So definitelyy, there will be
b
a broader market
m trend ttowards preveentive and beiing the markeet leader in thhis
space, we will
w play from
m that strengthh as well.
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Chandramouli Muthiiah: A follow up to that. There was an earliier question as

a well arounnd
wth. So historrically, I thin
value grow nk the industtry we've seeen most of thhe
growth beinng driven by volumes. I do
on't know how
w long this peeriod would be,
b
but there might
m be somee value growtth coming thrrough potentiaally because of
this shift. So
S just trying to understand
d what is yourr thinking aroound the pieces
that drive growth
g going forward betw
ween sort of value and voluume?

m Haldar:
Arindam Historicallyy, our strengtth has always been througgh volume growth,
g and w
we
always havve believed in that if we can grow volum
mes that givess you sufficient
leverage foor getting bettter financialss, better profiit and hence lower cost. So
S
overall, whhile there is no specific dirrection to do any price fallls, so we'll stiill
go by voluumes. Howeveer, the mix will
w give us bbetter value, more
m and more
preventive tests that we do, it will giive better valuue. If you loook at our client
mix, our coollection centeers give higheer revenue peer day than th
he other clientts,
the small labs, which does
d sample collections.
c S
So with our more
m and more
franchisee center cominng in, if I can double m
my franchiseee business, my
m
average reaalization theree also will goo up. I'm alsoo going to som
me of the higgh
value cliennts with the field
f team com
ming in; I'm also targetinng some of thhe
hospitals annd high end medical cliennts. With thaat coming in there
t will be a
further filliip in some off the better and
a higher priice test as weell. So overall,
yes, there will
w be a grow
wth, which wiill be a mix bbetween focuss on preventivve
tests, higheer thyrocare service
s providders and somee high value clients cominng
in.

Chandramouli Muthiiah: Seccond questionn is on the CO

OVID testingg specifically RT-PCR. Soo I
think if wee back the nuumbers out, maybe last qquarter, the realization
r was
closer to Rs.1,700
R perr RT-PCR, thhis quarter iit seems sligghtly less thaan
Rs.1,000. So
S where are we tracking it now? Andd maybe just related to thaat,
how much do we draw a line in the sand saying thhat below a ceertain price, itt's
not viable for
f us to do thhe RT-PCR teest anymore?

m Haldar:
Arindam It's like thiss. Between thhe Q3 and Q22, the price crrashed even faster
f probably
than the cost came in. But
B we have been able to raationalize ourr cost further to
offer the reealization of RT-PCR is going
g down m
much more on a day-to-daay
basis, and that
t is a trennd that is goinng to be there. We are co
onscious of ouur
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

margin stanndards. Obvioously, we willl not take anny foolish deccisions, but w
we
are very clear that if wee can get suff
fficient volum
mes, we'll be able to price it
much betterr than any of our competittors.

Chandramouli Muthiiah: Annd a final folllow up to thaat. In the moonth of Septem

mber, the nonn-
COVID buusiness was baack to about 93%
9 of normaalized levels. So maybe juust
in the monnth of Decemb
mber, just firstt to get an unnderstanding of the exit ruun
rate, is therre a similar nuumber that we're
w able to provide,
p may be whether itt's
like 106% of
o previous years or sometthing like thatt?

Sachin Sa
alvi: About 105%
%. So we alreeady revived. In fact, we arre seeing som
me growth.

Moderatoor: Thank youu. The next qquestion is from line of R

Rahul Agarwaal from Increed
Research. Please
P go ahead.

Rahul Aggarwal: Firstly, on the

t non-COV
VID side, wheen I'm lookingg at the volum
me number, annd
I'm excludding the RT-PCR and anntibody here, my sense is
i it's still not
n
recovered 100%,right,it'
1 's about 92% YoY. Broaddly wanted to understand, is
the air andd road travel restrictions, still impactiing the B2B volumes, annd
when do yo
ou really go bback to your fiscal
f '20 sam
mple volumes of 19.2 millioon
is what you
u did in Marchh '20 year, woould you go bback to that leevel in '22, hoow
do you thiink about thee non-COVID
D recovery aand I'm excluuding antiboddy
here?

Arindam
m Haldar: If you excclude the antibody RT-PC
CR, all of thhat, our volum
me in the laast
quarter hadd almost comee down, comee back to the last year's levvel, and in facct,
revenue cro
ossed last yeaar's level. Deecember has bbeen better thhan the overaall
quarter and
d Jan has beeen better than December. S
So by that loggic, I don't seee
any reason why by exitt of this year,, the volume shouldn't com
me back to thhe
last year's level
l and reveenue.

Rahul Aggarwal: Secondly, one

o participannt asked on thhe pricing forr COVID and
d obviously, itt's
gone down
n and drop is even sharperr. But broadlyy speaking, are
a you makinng
single-digitt EBITDA onn the COVID on current prrices or do yoou think you're
operating at
a breakeven level? You mentioned
m inn your presenntation, I thinnk
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

that the priice drop has been significcant, but youu've managed to handle thhat
through striingent controols on negotiatting reagent ccosts and stufff like that.

Arindam
m Haldar: Yes, we arre making m
margin in RT--PCR tests annd we have negotiated ouur
costs downn further, and we still makee a comfortable margin in RT-PCR.
R

Rahul Aggarwal: One small question

q for S
Sachin was what
w is the CA n nine months?
APEX done in

Sachin Sa
alvi: The CAPEX
X figure is arround some 12
2 to 15 croress.

Rahul Aggarwal: And the fuull year targett? I'm askingg this purely because we'rre spending on
o
zonal and regional
r labs.

Sachin Sa
alvi: he CAPEX foor the full year is considerred it would be in the sam
As far as th me
level becau
use as I saiid most of the capital expenditure for Bangalore
processing laboratory ass well as for Kochi as welll as for the other
o Lucknoow
laboratoriess already incuurred and debbited to the cappital work-in progress.

Moderatoor: Thank you

u. The next question
q is frrom the line of (Sayantann Majhi) from
Credit Suissse. Please go ahead.

Anubhavv: This is An
nubhav here. One is clarrity on the collection
c centers that yoou
mentioned. When you mentioned
m aboout starting w
with 50 franchiisee centers for
fo
the collection center sidee, which city are you talkinng about?

Arindam
m Haldar: So this is not
n a single city. So typicaally, all our reegional proceessing labs thhat
we have, ouur current foccus is having collection ceenters more arround the sam
me
so that we can give a quuick turnarouund time of teest over theree. So this is thhe
mix betweeen all the reggions, but in each of the rregions it is more closer to
where our regional
r proceessing centerss are, which aare the larger cities.

Anubhavv: I was askiing about thee preventive test. When we look at fiscal
f '20 tottal
volume, if you were too just bucket into two parrts, someone who's cominng
from a corpporate contacct versus som
meone who is booking a teest on his ow
wn,
what wouldd this test likke, 80% indiividuals, 20%
% comes throough corporatte,
what does this
t look like??
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Sachin Sa
alvi: As far as preventive
p carre profiles aree concerned, mostly we arre getting these
orders from
m the individduals and mostly we are ddoing home collections.
c S
So
corporate customers
c if you are askiing it will be very less, tentatively thhe
number willl be somewhhere in the rannge of 2% to 55%, not more than that.

Anubhavv: Last clarityy on this. When

W you loo
ok at the proofile of the customer youur
business ov
ver the last two,
t three yeears and whenn you see the traction off a
preventive test, which aage group you
u see the moost traction, iss it like peopple
more than 50-years oldd or enrolling for more prreventive tests or is it more
younger geenerations roolling for it which
w age ggroup are youu seeing more
traction?

Sachin Sa
alvi: om tier-1 citiies that are number one. Of
So, mostly the traction is coming fro O
late, tier-2 cities
c also wee are seeing soome good vollume. As far as age group is
concerned, mostly it iss from the middle
m age grroup, not from
m the old agge
group, 35 too 55 years off age you can say.

Moderatoor: Thank you. The next quuestion is froom the line off Saurav Shro
off from QRC
C.
Please go ahead.
a

Saurav Shroff: Going back

k to this 50 frranchisee collection centerrs that we aree adding, I juust
wanted to understand,
u ddoes this meaan we are addding a furtherr layer betweeen
us and our franchisee?

m Haldar:
Arindam No, these are
a franchiseee collection centers,
c and tthere is no addditional layeer,
we alreadyy have 500 off them, it is the same, thee franchisees are our direect
contact, andd patients com
me to the frannchisee, so, thhere is no otheer layer.

Saurav Shroff: So, this add

dition of 50 iss sort of moree of the same, is that right?

m Haldar:
Arindam Yes, that iss where I said it has gone up
u by 10% adddition in the last
l 40-days.

Saurav Shroff: The reasonn to do this is you think thaat you can provide better local
l service in
terms of turrnaround timees, etc.?
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Arindam
m Haldar: It is to furtther the overaall hub-and-sspoke model. Because if you
y give bettter
accessibilitty to the patieent through a branded cennter, so the paatient can waalk
into the neaarest center annd get access to the overalll Thyrocare menu.
m We havve
logistics sett up, very robbust, which go
oes through eevery nook annd corner of thhe
country, whhich picks upp the sample and brings itt to the proceessing lab. Annd
since all ou
ur centers are connected onnline, the repoorts are availaable as soon as
a
enough sam
mples are proocessed in thhe lab. So thiis gives betteer accessibilitty.
And it also
o helps sweaat my machinnes better at the lab, beccause all those
samples draain into our pprocessing lab
bs.

Saurav Shroff: So basicallyy, between thhe client and the

t company, there is just this
t one sort of
o
franchisee or agent whoo's doing the collection, and
a then mayybe the logisttic
part of it, thhat's fair?

m Haldar:
Arindam Yes, so we have our loggistics system
m, which just ppicked up andd the collectioon
centers is where
w our patiients go, and they give theiir sample therre.

Saurav Shroff: The second

d question waas on Nuecleear a little bitt longer term,, once let's saay
COVID is over
o another 3, 6, 9 month
hs, where do you
y see that business
b sort of
o
stabilizing and coming to breakeven
n and then beetter, what's thhe sort of plaan
for the nextt 12, 18 montths?

alvi:
Sachin Sa As far as Nueclear
N bussiness is conccerned, as wee have said in
i the openinng
commentarry, almost 78% of our bussiness has alrready revivedd. Some of thhe
centers likee Delhi, Mum
mbai and Hyd
derabad are allready seeing surge of up to
30%, 35% in terms of the number of scans whhich we reporrt. In terms of
o
breakeven, at least in tthis current quarter
q we hhave not incuurred any cassh
losses, thatt is what we hhave also discclosed in our presentation. So breakeveen
level alreaddy attained. And
A we think this
t will contiinue in the neear future too..

Saurav Shroff: So this is suustainable, annd if anything

g grows from here?

alvi:
Sachin Sa Pre-COVID
D period, if yyou see, almosst for about eight
e quarters, we have seeen
positive cassh flows. Justt because of the
t COVID, it
i went into cash losses, annd
the momen
nt business reevived, againn, we are seeiing cash positive. And thhis
despite threee of our centters not functtional, and onne of our macchinery alreaddy
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

shifted from
m a particularr location to a new locatioon. So, four of our machinees
are not active and runninng as of now and still this iis the progresss.

Moderatoor: Thank youu. We have thhe next question from thee line of Varrun Goel from
Nippon. Pleease go aheadd.

Varun Go
oel: My operation questions are being ansswered. Just tthree things; on
o our imaginng
business, have we reconnsidered whatt we were trying to do a yeear back tryinng
to sell it too our promooter Dr. Veluumani or get it off Thyroocare, have w
we
rethought on
o that side?

Sachin Sa
alvi: So you're talking abouut Nueclear Healthcare
H L
Limited, rightt? As on 31sst,
March 2020, we have done an impaiirment assessm
ment. That iss what we havve
reported inn our numberrs as on 31stt March 20200. Thereafterr, we have not
n
w be doing that again as on 31st Marcch
assessed acctually the proogress. We will
2021.

Varun Go
oel: But more strategically, what are yoour thoughts as to havingg that business
within highher or otherwiise?

Sachin Sa
alvi: So, as I saaid in the earrlier answer, we are seeinng a good rev
vival as far as
a
Nueclear business
b is cooncerned. So,, the call as tto what is too be done with
Nueclear bu
usiness will be
b decided in our board meeting
m for thee quarter endeed
31st, March
h 2021.

Varun Go
oel: ur leggie inittiative, whichh was to maake the priciing transparent
Second, ou
between uss and the custtomer and thee franchise in the middle, any
a thought on
o
that, how iss it or have w
we taken anothher route or hoow's that worrking now?

Arindam
m Haldar: So, the legggie network is growing. Soo, that verticaal has a focuss with a grow
wth
leader leadding that vertiical. So, thatt vertical is ggrowing on itts own and w
we
believe thatt that will also sustain as separate
s significant revenuue stream as thhe
franchisee. So, as far ass the franchissee collectionn center is cooncerned, there
our focus will
w be more on
o direct patient walk-in rreferred by dooctor and hom
me
collection and
a the smalller labs we will
w be serviciing more throough the legggie
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

network, annd we have inndividual grou

up leaders annd they are focusing on eacch
of the revennue streams.

Varun Go
oel: Any data as to what percentage
p o our smalleer labs or soomething havve
of
adopted it or…?
o

Arindam
m Haldar: We don't haave segment w
wise revenue of leggie turnnover separattely.

Varun Go
oel: A final dataa point. Whatt percentage of
o our sample is transported via air?

Sachin Sa
alvi: Most of th
he samples which
w are proocessed at CP
PL and comin
ng from statees
other than Maharashtra are coming through
t air. E
Exact percentages, it is verry
difficult forr me as of now
w to give you
u.

Moderatoor: Thank youu. The next question is from the linne of Bharat from Equiruus
Securities. Please go aheead.

Bharat: R part, since w

Sir, on MR we are now employing
e fieeld force. So just wanted to
understand what will bee the exact KRAs,
K whetheer they will be
b approachinng
the doctorss or their rolee will be to enroll
e more ssmaller laboraatories and get
g
them associated with Thhyrocare?

Arindam
m Haldar: So if I hearrd you correcctly, you are asking aboutt what will be the KRAs of
o
the field sttaff, is that ccorrect? So thhe objective of the field staff
s as they're
going arounnd is to get more
m of our branded collecction centers and high valuue
clients. So, that's where the primary focus
f will be.

Bharat: When we refer

r to prem
mium clients, what
w we are referring to, is it like more
collection centers
c or whaat is this?

Arindam
m Haldar: Their focus will be onn two; one iss the brandedd collection centers or thhe
Thyrocare service prooviders, which are excllusive brandded space ffor
Thyrocare as well as high value clieents, could bee in high end medical client
hospital off that kind. S
So, either a high value cclient or Thy
yrocare servicce
provider, thhose will be bbest procuredd by the field staff, we willl also have thhe
office-based business deevelopment team,
t which is
i currently continuing,
c annd
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

they still continue

c to puursue and geet us more off the leggy and
a the smaller
clients.

Bharat: So, whatevver we have employed so far, around 120 MRs, soo will there be
b
further incrrease in headdcount or whhatever we have
h now em
mployed, that is
only going to be the num
mber?

Arindam
m Haldar: It will be inn line with thhe revenue thaat they generaate. India bein
ng such a largge
country, it'ss very difficuult to say that 120 is all thaat one needs. But, of coursse,
we will go as revenue comes in, techhnically, if the revenue keeeps growing as
per our visiion, yes, the number can also
a grow, buut it will depeend on how thhe
revenue com
mes in. But overall,
o yes, if
i I have to goo to every sinngle city of thhe
country, off course, 120 MRs
M will not be enough.

Bharat: What woulld be the vaalue current contribution of 500 colleection centerrs,
which we already
a have?

Sachin Sa
alvi: Somewheree in the rangee of 30% to 355%

Bharat: Whatever value

v we are ggenerating fro
om online or website as well
w as from ouur
own BD teaam what will be that contribution to ourr revenue?

Sachin Sa
alvi: Our B2C coomponent is only
o 15%.

Bharat: Why I'm assking is becaause we said that

t m franchisees is
our contrribution from
around 35%
%. So franchissees, don't yoou consider ass B2C?

Sachin Sa
alvi: Franchiseess are countedd under B2B
B revenue onlly. You've assked about thhe
B2C contribbution. B2C ccontribution is
i 15%.

Arindam
m Haldar: Just to givee you a little more clarity, if I just breeak it down, the
t direct salees
associate reevenue todayy is about 10%, and the direct
d we're booking
b is less
than 5%.

Bharat: hat's what I was

Actually, th w trying to understand. N
Now what haappens is wheen
we look att the peers, tthey actually add these frranchisee revvenues as B22C
revenue, it is not alwayss considered as
a B2B revenuue…
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Sachin Sa
alvi: We put it as
a B2B revennue, we don't put franchiseee as B2C reevenue, and w
we
only countt the revenuue that we realize
r from the franchisee, not whhat
franchiseess realizing froom the patientt, we considerr that as B2B revenue.

Bharat: One on thee preventive side, who alll market this Aarogyam --
- so is it eveen
marketed by
b the smallerr third-party laboratories also, or it is only marketeed
through ourr own digital interface as well
w as througgh our own ceenters?

Arindam
m Haldar: As I told yoou, Aarogyam
m is almost 50% of my noon-COVID bu
usiness and my
m
direct accesss to my conssumer is less than
t 5%, so oobviously, wh
hich means thhat
Aarogyam is through alll my channelss, my franchissee partners sell
s it, my othher
business paartners and cclients sell itt, and of couurse, a lot off direct cliennts
enquiry com
mes in to webbsite, which is limited to thhe percentagee that I said. So
S
we get Aaro
ogyam sales tto all our reveenue streams..

Moderatoor: Thank you.. The next question is from

m the Saurav S
Shroff from QRC.
Q Please go
g
ahead.

Saurav Shroff: d to understaand from you, what is the latest franchhisee count annd
Just wanted
what is the plan on increeasing that?

Arindam
m Haldar: bout 500 colleection centerss, we have got about 50 additional
We had ab a core
which I spooke about andd we have an aggressive pllan to take th
his forward, ouur
vision of doubling
d this,, won't be abble to give yyou exact tim
me plan for thhe
same, but that's the viision with which
w the fieeld team is progressing
p o
of
doubling my
m account whhich we had seen
s about thrree months baack.

Saurav Shroff: Are these thhe end franchhisee, the 25,0000, 30,000 nnumber?

m Haldar:
Arindam No, we aree talking abouut the branded collection ccenters whichh are exclusivve
collection points
p who hhave Thyrocarre brands andd there is a dedicated
d spacce
and they on
nly take sampples for Thyro
ocare. We havve multiple co
ollection poinnts
across the country whicch runs multiiple tests, andd they have various
v colorrs;
they could be smaller laabs, who we call leggie, thhere could bee other ends as
n I say Thyroocare service provider, wee only mean the
well. When t ones whicch
are exclusivve branded coollection poinnts of Thyrocaare.
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Saurav Shroff: The plan iss grow the exclusive Thyro

ocare collectiion centers annd not so mucch
the others, that's how wee are sort of thinking
t abouut building thee brand and thhe
g forward?
reach going

Dr. A. Veelumani: Some of thhe questions w

were asked, I have noted ddown and I wanted
w to givee a
brief responnse to all of them. The first question w
was, “Whether PSR, that is
Per Specim
men Revenuee increase iss temporary or sustainab
ble?” Yes, thhe
thyroid sam
mples which aare having thhe lowest reveenue per sam
mple have com
me
down becauuse of the CO
OVID pressuures, logistics pressures. So we have loost
low value specimen, annd that is onee of the reasoons why you see a high per
specimen revenue, thoough, as ourr people expplained that Aarogyam is
g for the movvement of hiigher side forr the revenue per specimeen.
contributing
Second queestion asked w
was “Where COVID
C will ggo?”No one knows
k where it
will go, beccause two moonths back, thhree months bback, it was a huge pressurre,
it was all inncreasing, annd then volum
me started deccreasing. Tod
day, we have a
situation where
w rates arre also low, volumes are also low. Thhat is why w
we
sound veryy pathetic. I'm
m very happy that COVID PCR is collaapsing because
saying thatt the country is having a better
b health tthan what wee expected. We
W
don't know whether PCR
R will continu
ue with this volume or because the fear is
over peoplee will test moore or no, I doon't know, earrlier testing was
w not done ffor
the disease, earlier tests were not don
ne because thhere was too much
m of stigm
ma
of getting positive
p and ggetting harassed by the adm
ministration. A question was
asked “Is that
t logistics a problem?””Yes, logisticcs is a big prroblem. Abovve
Delhi, we were totally dependent upon
u train, ttrain movemeent completely
come downn, and even tooday, we are unable
u to resuume our train--based solutioon
across the country
c becauuse trains aree not runningg like what it used to be. So
S
the logisticc is the main reason why our non-COV
VID businesss has not com
me
back. Thenn the questionn was asked, “On Nueclear, what is thhe dream, whhy
Dr. Velumani he did noot buy it, will he buy it?” Let me hon
nestly admit,, I
wanted to buy
b it and ruun. But if I haad bought it, I would havee been runninng
that only because that's a very toughh thing to runn. That's the reason
r why thhe
board of directors
d saidd, “Let Velum
mani not buyy it.” But let me tell yoou,
Nueclear iss not a busineess compared to what we hhave as a pathhology business
with 40% EBITDA,
E low
w CAPEX, wonderful
w busiiness. So Nueeclear business
is least likeely to give yoou big profitss. I have a reeason to belieeve it will givve
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

you some returns

r equivvalent to a baank deposit reeturn in the long run. Donn't
count too much
m from it. We have scaaled it down because
b threee of the centeers
went for littigation, remaaining centerss in COVID, they are too new, let us not
n
run and we have closeed it. So we now finally are trimmin
ng down to 10
1
centers andd we will opeerate these 100 centers to m
make sure that there are no
n
cash lossess and there iis at least a fixed deposiit kind of a return for thhe
investment done. The next question asked, “Whaat percentage of air business
is coming??” Let me telll you, earlierr before 20155, it was 100% air business
and then we
w started puutting up labo
oratories in different
d metrros. Today, w
we
have 15 labboratories in 115 metros. So
o we don't gett 80% of the business
b whicch
was there inn air, they aree locally processed, so 20%
% of the businness only travvel
from metroos to Mumbaai, so air conntribution is only
o 20%.Annd the questioon
asked, “Yo
ou have addedd 50. Is it new
w kind, is it ssomething siggnificant?” Let
L
me tell yoou, traditionaally a franch
hisee as a concept was introduced by
b
Thyrocare as early as 1996. We are the strongestt franchisee-bbased player in
the countryy. But over a period of tim
me, the loyaltty aspect of the
t franchisees
has come down,
d they feelt for some of the tests, some local laaboratories are
a
giving a better
b rate, annd they startted trading different,
d diffferent kinds of
o
laboratoriess under them.. So now, frannchisee conceept if we analy
yze it, the onees
who are committed to us as of today are 500,the oones who are not committeed
to us are allmost 5,000. So what we are thinking of adding more
m committeed
franchiseess, and branded franchisees and help these comm
mitted brandeed
franchiseess to grow the business in a different moode than the business
b whicch
casual frannchisees are giving.
g I havee noted down a few pointss because there
was some technical
t snagg and my outggoing calls were in mute mode.
m And noow
I am not having a challlenge. So, if there are som
me questions,, I will explaain
them and answer
a them. Thank you, Nomura
N for rresolving the technical snaag
and bringinng me in the conference
c caall.

Moderatoor: Thank you. The next quuestion is froom the line off Vikas Kastuuri from Focuus
Capital. Pleease go aheadd.

Vikas Kaasturi: My first qu

uestion is, wouuld you be exxpanding the ttest menu?
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Dr. A. Veelumani: A very intteresting quesstion. But lasst 25 years ttest menu exxpansion is not
n
happening in the pathology. Very litttle tests havee been added. All those neew
tests added, they don't have volume. And
A let me teell you what COVID
C madee a
OVID is the only test whhich in the firrst month itseelf became thhe
wonder. CO
most profiitable, most volume tesst because of
o the COV
VID disruptioon
Subsequenttly, the COV
VID also has slowly gone down in thee chart. Todaay,
COVID tesst is not as muuch as Aaroggyam test is. Coming
C speciifically to youur
question, we
w are not inttroducing any
y new tests, we
w are trying
g to make neew
kind of pacckages, we haave introducedd LC-MS andd we have addded for 10 LC
C-
MS machiines. We aree interested in adding costly
c tests, making them
affordable and making into package and havingg better valuue. To be verry
honest, theere are not m
many tests available
a for us to even experiment to
increase thee menu.

Vikas Kaasturi: Sir, my neext question was in todaay's scenarioo, what is thhe competitivve
intensity likke?

Dr. A. Veelumani: It is no leess. I think ffor the last 25-years

2 I'm seeing the competition is
growing much
m faster thaan the industtry. In spite oof that, the larrge players are
a
sustaining some good trraction. So, iff you ask mee post-COVID
D, the intensity
of new laboratories com
ming in, new people gettinng in, all theese things havve
increased. In
I fact, there are plenty of
o medium-sizzed laboratoriies who got an
a
opportunityy to do PCR tests
t have maade three timees more turno
over in quarteer-
over-quarteer basis, wheereas all the organized pllayers are suuffering arounnd
30% growtth. So, if yoou look at it, there are huge
h pains in
n the industrry.
Equally, thhere are somee opportunitiees in the inddustry. What worked before
COVID wiill not work the same waay. All have to reorient. Patient
P walk-in
culture to the center iis stopping, patient dem
manding for home
h services
increasing, and a lot of changes happ
pening. So it''s very difficuult to comment
as of todayy, whether ccompetition intensity
i is 10%
1 more, 20%
2 more, but
certainly it is more.

Vikas Kaasturi: ward, where w

Going forw would your invvestments be??
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Dr. A. Veelumani: Well, theree is very littlle investmennt made, that''s why we are periodically
declaring a dividend, buusiness is low,, you understaand from all listed
l companny
balance sheeet. So, theree is a likeliho
ood we will invest on som
me higher ennd
technologiees, but the higgher end tech
hnologies alsoo could be att the maximuum
Rs.20 crores per annum
m, and for Rs.500
R croress turnover co
ompany Rs.220
crores per annum
a is nott at all anythin
ng to be trulyy worried aboout or planninng
about. I seee high end maachine in preventive care, in Mass Speectroscopy, thhat
is either IC
CTMS or it is
i LTMS or it
i Gas Chrom
matography, GCMS,
G all thhe
three are most
m likely to find a betterr place in thee balances in a competitionn-
driven marrket, because routine testss doing, you are not diffeerentiating, yoou
have to diffferentiate by doing those teests for whichh there is no readymade
r kiits
available.

Moderatoor: Thank you. The next quuestion is fro o Ravi Nareddi from Naredi
om the line of
Investmentts. Please go ahead.
a

Ravi Narredi: Sir, how muuch growth pplan are we asssuming for next three yearrs’ timeline?

Dr. A. Veelumani: If god com

mes and asks, I can tell him
m 100% but iff an investor comes
c and askks
I cannot telll him. Havinng said that inndustry is likeely to have arround 20% iff it
was only 100%, 12% grow
wth for the laast 10-years, nnext 10-yearss it will be 20%
growth. “D
Dilwale Dulhhaniya Le Jaayenge” the ccompany whho has a goood
aggression,, the companny which keepps less price perhaps thatt company will
have grow
wth. So it's vvery difficult for me mottivate you in
n investor caall
because if I don't do it, yyou will feel that
t Velumanni says a lot buut did nothingg.

Ravi Narredi: No, no, I'm

m not just com
mplaining or anything.
a In laast AGM, youu have ensureed
that there will
w be a 15%
% to 20% grow
wth for next five-years.
f So
o just asking in
terms, how
w is the situatioon now since six months hhas been passed? That's whhy
I'm asking you.
y

Dr. A. Veelumani: So if I havee said nine moonths back orr seven monthhs back, be asssured this year
we will end
d at least 20%
%-plus growthh. How the nnext year will go we have to
see that.
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Ravi Narredi: How much CAPEX plann we are plann

ning for finanncial year '22??

Dr. A. Veelumani: Yes, Sachhin said, poost-COVID because

b of PCR busineess, we havve
aggressivelly invested arround Rs.15 crores
c in this fiscal. I thinnk it should not
n
exceed more than that, because once the good ggrowth is therre, we need to
invest in reegional proceessing laborattories. So, I w
would say at the maximuum
Rs.12 crorees to Rs.15 crores for next year.

Moderatoor: Thank you. The next quuestion is from the line off Varun Goell from Nippoon.
Please go ahead.
a

Varun Go
oel: I had a cou
uple of questioons. First around turnarounnd time. From
m the custom
mer
collection of
o sample to a lab to the report,
r is therre any impro
ovement in thhat
turnaround time or whatt is it currentlly or how are we benchmaarking that with
our peers, any
a data or anny insight therre will be useeful?

Arindam
m Haldar: Varun, if you
y see the pprofile of ourr test, half off the test is preventive.
p So,
there the deesperation onn turnaround time
t is relativvely less. So, overall, in thhe
cities wherre we have rregional processing labs, technically, the
t turnarounnd
time will be
b better becaause sample will
w take lesss time at leasst for the bassic
tests to be done
d over theere. So, to thaat extent, for the samples nearby
n the neew
regional prrocessing labs, those turnaaround time will be slighhtly better thaan
earlier. So, if you look at a quarterlyy level, we arre seeing oveer the last threee
quarters if I look at thee overall datta and pre-annalytical turnaaround time is
reducing.

Varun Go
oel: nd the high-leevel point, buut do we tracck it in termss of number of
I understan o
hours or nuumber of dayss?

Arindam
m Haldar: So, I'll just give some daata points to things.
t So, wee track it at alll India level, if
I talk abouut a quarterlyy progression,, the pre-anaalytical turnarround time has
gone down by about 3 hours
h and we track
t it at eveery pin level.

Varun Go
oel: By 3hours, what is the base?
b

Arindam
m Haldar: From 26 to 23-
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Dr. A. Veelumani: We consideer turnaroundd time as pre-aanalytical turn

rnaround timee and analyticcal
turnaround time, that means testing turnaround
t tim
me, another is the specimeen
reaching too the companny. 90% of the
t specimenn, the analytical turnarounnd
time is threee hours. So, once the sppecimen has come inside the laboratorry
within three hours 90% released, witthin four houurs 99% released. So, that is
irrespectivee of whetherr the specim
men comes fr
from which city.
c The prre-
analytical if
i you look aat this businesss always sam
mple is colleccted in fastinng.
So, samplee collection time
t is 6 a.m
m. to 10 a.m.. Always couurier moves in
6p.m. not before
b that beecause courierr is supposed to be travelinng in the nighht.
So, if you analyze
a it, aroound 50% of the samples are
a collected within
w the citty,
which is cooming to the laboratory att the same daay and reportted within fouur
hours. But the other citiees will come only next dayy morning. Soo, it is 24 houurs
plus four hours.
h And this we are con
nstantly tryingg to see how to decrease it,
but I thinkk we have arrrived at the best.
b But pleease note, wee are not at all
a
copying wiith our peers, because theey have veryy different buusiness modells,
they have hundreds oof laboratoriees which arre running in
i the nearbby
proximity, we are onlyy operating with
w 15 laboraatories and one
o centralizeed
laboratory. So, we are not
n into competition in term
ms of higher fast track. Annd
let me givee you a punchhline, “I am not
n focusing oon fast track. I am focusinng
on better qu
uality.”

Varun Go
oel: Just two more
m questionss. One, we haave a very ricch history, alm
most operatinng
for 20-yearrs now. So whhat are we do
oing in terms of technologgy initiatives to
improve ou
ur repeat custoomer rate, proovide better analytics
a to thhe customer, or
o
how are we
w using our history of tests,
t is theree any investm
ments there or
o
initiatives there?
t

Dr. A. Veelumani: Actually, your

y question is right if we were operating in a conveentional modeel.
80% of ourr business com
mes through our franchiseee. So he is thhe face for ouur
company. So he keepss the databasse, he persuaades them annd he gets thhe
business. Only
O 20% of the patients who
w come diirectly to us. We do have a
loyalty program, we do persuade them, they are coming
c back to
t us, there are
a
some peoplle who do thee test four tim
mes in a year and
a some enttire family fouur
times in a year.
y So therre is a persuasion but to be very honest with you, w
we
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

are not likee other players who are totaally onB2C and
a they are fully
fu committeed
to persuadinng. For us, 800% persuadedd by franchiseees.

Varun Go
oel: Just a contiinuation of thhis, we are perrceived as priice leaders. So are we doinng
any brandinng investmennts or digital marketing
m of promotions which
w are nonn-
price relateed?

Dr. A. Veelumani: In that waay if you loook at it, the way in whiich we got so
s many times
subscribed in our IPOs is our brand is a very pow
werful brand
d in the eyes of
o
the commoon man. Withh Aarogyam as a brand w
where a com
mmon man caan
relate witho
out going to the
t doctor, hee can come annd avail the service.
s We are
a
very strongg there and w
we have also spent
s substanttially even in
n this lockdow
wn
period in so
ome digital marketing.
m Soo we are workking on it, at the same tim
me
we are not direct B2C pplayer. So alll is going thrrough our fraanchisees now
w.
We are quitte happy at thhat volume.

Moderatoor: Thank you. The next quuestion is from

m the line off Sujit Paul frrom Prabhudaas
Lilladher. Please
P go ahead.

Sujit Pau
ul: Where do Thyrocare
T staand currently in
i pre-natal annd anti-TB buusiness?

Dr. A. Veelumani: They are tw n pre-natal buusiness, we weere planning to

wo different bbusinesses; in
do NIPT which
w is attacched to a pree-natal late ppregnancy, eaarly pregnanccy
testing. Buut the businesss before it to
ook off, COV
VID disrupteed and COVIID
wanted more space, andd we did not find
f justifyingg to keep the NIPT because
now when it will
we don't kn w assume, when
w the CO
OVID had colllapsed, no ideea
what is this COVID is going to do. To see the end
e of the yeear itself was a
very big drream. Now thhat COVID haas gone mild,, we may rev
view and restaart
NIPT.As of
o today NIP
PT has been
n closed dow
wn. TB businness has beeen
constantly growing.
g We are in to TB business for the three yeaars. And I muust
tell you wee have grownn in these lasst three yearss from zero to
t a substantiial
Rs.20 crorres per annum
m. And in my
m opinion this will gro
ow 15%, 20%
minimum year-over-yea
y ar because go
overnment hass a very ambbitious prograam
of end TB,, and we are growing andd I'm happy that I have started,
s and itt's
going to heelp to add to thhe bottom linne as well as thhe top line.
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

Sujit Pau
ul: Are we mak
king profit at operating lev
vel?

Dr. A. Veelumani: Yes, entire pathology buusiness, there is no loss at all in any parrt of it, because
X in that buusiness was only Rs.3 crores, now the
the CAPEX t revenue is
substantial with 50% EBITDA,
E so there
t is absollutely no worrry, it is doinng
well.

Sujit Pau
ul: Another thhing is that when Thyro
ocare is gettiing into bran
nded premiuum
segment off collection ceenters, is it a harbinger off going forwarrd, any kind of
o
specializedd acquisition oor similar kindds of things?

Dr. A. Veelumani: 27-years, I haven't gonee for any inorrganic acquissition. Least likely
l I will be
b
going for one. If all oof you give me 30 multiiple, 40 mulltiple. Unlisteed
company also is demandding more thaan that. So it is not wisdom
m for investinng
too bigger money for aan inorganic growth. We believe orgaanic growth is
much affordable than inoorganic grow
wth.

Moderatoor: Thank you very much. A

As there are no
n further queestions, I wouuld now like to
onference oveer to Dr. Veluumani for clossing commentts.
hand the co

Dr. A. Veelumani: Thank you very much, N

Nomura, and
d thank you alll who have participated
p ffor
the last 65, 70 minutes. I think countrry is safe, Inddian per se CO
OVID is over. I
very confiddently tell beecause in Sepptember, we were 1,200 per day deatth,
today we are
a less than 1100 deaths peer day. And this
t is not pro
obably because
of COVID what we are currently cou
unting. When the western world
w is havinng
ve, third wavee, it is very-veery pleasing tto see that wee have gone out
second wav
of it. Of course,
c had iit been there for longer, I might havve made bettter
Balance Shheet, but I donn't think that any wisdom. And econom
my has reviveed,
the stock markets
m have bbeen boomingg. So with alll said and don
ne, the Hon'bble
Finance Minister,
M Nirm
mala Sitharam
man, has claiimed that theey have giveen
130% or 1440% more to the
t healthcaree, not directlyy into healthcare, some forrm
of healthcaare, a lot of money
m is invested into vaaccinations, which
w I believve
now probabbly is not dessperate need for the counttry, but that is my personnal
view. Having said that, more money is certainly ccoming into healthcare
h from
the governnment, more money is gooing to comee from the in
nvestors, more
money willl come from the
t common man's
m pocket because now he has fear fo
for
 Thhyrocare Technnologies Limiteed
Feebruary 04, 20221

life, so thaat means therre will be more

m into heaalthcare busin
ness, more joob
opportunities, more grow
wth opportun
nities, I am off that opinionn. The financiial
year 21-22 will have muuch better gro
owth than whhat we had in the year 20221.
And 2021, it looks like it is booming. But it lookks like as I saaid that we are
a
likely to deeclare when tthe year endss roughly aroound 20% groowth. So thannk
you very much
m and hoppe to see you in the last week
w of April when the yeear
ends and we
w have a call.. Have a greatt day.

Moderatoor: Thank you very much. O

On behalf of Nomura Finaancial Advisoory &Securitiees
India Limitted, we concluude this confeerence. Thankk you for joinning us and yoou
may now disconnect
d youur lines.

***End off Transcript****