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After Rs 215 Cr profit in FY22, Molbio reports Rs 3 Cr loss in FY23

EntrackrEntrackr · 1y ago
After Rs 215 Cr profit in FY22, Molbio reports Rs 3 Cr loss in FY23
Medial

Healthcare diagnostics firm Molbio achieved unicorn status after a $85 million funding round led by Temasek in September 2022, but its success was short-lived, lasting only through the pandemic. Molbio’s revenue plummeted 74%, from Rs 1,272 crore in FY21 to Rs 332 crore in FY23. Significantly, the company slipped into losses in FY23 and posted a loss of Rs 3.4 crore in the same period as compared to Rs 215 cr profit in FY22. On a year-on-year basis, the firm, also the first ever Unicorn from Goa saw a 57% decline in its revenue to Rs 332 crore in FY23 from Rs 776 crore in FY22, its annual financial statement sourced from the RoC shows. Truenat, the flagship product of Molbio Diagnostics, provides a real-time IoT-enabled testing kit for over 30 diseases. The sale of Truenat, Micro PCR workstations, reagent kits, and cartridges were some major avenues for the company’s collections. Truenat is mostly relevant for the diagnosis of Tuberculosis. The Goa-based firm also made Rs 5 crore from interest and gain on financial assets tallying its overall revenue to Rs 337 crore in FY23. For the diagnostic firm, the cost procurement of raw materials and medical components accounted for 44% of the overall expenditure. In the line with the scale, this cost decreased by 47.4% to Rs 143 crore in FY23. Molbio’s spending on employee benefits, traveling, legal, advertising cum promotional, freight, and other overheads took the overall cost to Rs 328 crore in FY23 from Rs 486 crore in FY22. The 57% decline in scale and the pressure of fixed costs pushed Molbio into the red and it reported a loss of Rs 3.4 crore in FY23. This is a significant downturn compared to the Rs 215 crore profit posted by the firm in FY22. Its ROCE and EBITDA margin worsened to 2% and 14.5%, respectively. On a unit level, it spent Rs 0.99 to earn a rupee in FY23. The Goa-based company has raised Rs 970 crore to date. According to the startup data intelligence platform TheKredible, its promoters through Exxora Trading LLP are the largest stakeholders with 41.7% shares followed by Motilal Oswal which commands 12.96%. Molbio claims that it closed FY24 with Rs 850 crore in revenue and has plans to strengthen its global presence this fiscal, along with launching new products in the Indian market. With these initiatives, it targets a revenue of Rs 1,200 crore and plans to raise around Rs 2,200 crore to Rs 2,400 crore via public listing in the ongoing fiscal year (FY25). FY23-FY24 FY23 FY24 EBITDA Margin 48% 14.5% Expense/₹ of Op Revenue ₹0.63 ₹0.99 ROCE 44% 2% Large fundraising plans along with growth ambitions are par for the course for a firm that has taken the kind of hits Molbio has. It might not find it as simple to convince investors it can execute, especially in a market where both regulations and perceptions towards portable testing kits are changing, even as Truenat itself remains relevant thanks to the wide prevalence of tuberculosis and its variations even today. Cost pressures from other, more low cost options is just one side of the market, even as its own plans to expand to other disease diagnostics need to show real progress fast.

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Molbio Diagnostics posts Rs 1,020 Cr revenue, Rs 138 Cr PAT in FY25

EntrackrEntrackr · 1m ago
Molbio Diagnostics posts Rs 1,020 Cr revenue, Rs 138 Cr PAT in FY25
Medial

Goa-based molecular diagnostics firm Molbio closed FY25 with Rs 1,020 crore in revenue and Rs 138.5 crore profit, marking a sharp recovery from its post-COVID slump. The Temasek-backed unicorn, which had shot into the limelight during the pandemic, saw its revenue peak at Rs 1,272 crore in FY21 before crashing to Rs 332 crore in FY23. According to its draft red herring prospectus (DRHP) filed with SEBI, Molbio’s scale grew 22% from Rs 836 crore in FY24 while its profits surged 66% during FY25, underlining the company’s turnaround ahead of its proposed public listing. The growth was largely powered by its flagship Truenat platform, a portable, battery-operated molecular testing system used for tuberculosis and over 30 other infectious diseases. As per the DRHP, the company claims to have sold 2,180 devices with 12.24 million test kits in FY25. Molbio’s total expenses grew 25% to Rs 820 crore in FY25. Raw material consumption accounted for more than half of the cost base at Rs 413 crore, while employee benefits rose 61% to Rs 103 crore. Advertising and marketing spend nearly doubled to Rs 22 crore. At the same time, the company’s EBITDA margin stood at 26.17% while return on capital employed (ROCE) was at 22.06% in FY25. On a unit level, it spent Rs 0.80 to earn a rupee of revenue, compared to Rs 0.82 in FY24. The company currently operates five manufacturing units across Goa, Bengaluru, and Visakhapatnam, with an installed capacity of 3,600 Truenat devices and 3.9 crore test kits annually. Backed by Temasek and Motilal Oswal Private Equity, Molbio has raised about Rs 970 crore to date. Through its IPO, Molbio plans to raise Rs 200 crore via a fresh issue, while existing shareholders will offload 1.25 crore shares through an offer for sale. The proceeds will be used for a new R&D facility, expansion of manufacturing units, and general corporate purposes. As per the DRHP, Exxora Trading LLP is the largest shareholder in Molbio with a 41.23% stake, followed by India Business Excellence Fund at 12.66%. Temasek owns 8.93%, while Gopalkrishna Mangalore Kini and Dr. Chandrasekhar Bhaskaran Nair hold 6.73% and 5.42%, respectively. Molbio has bounced back from its pandemic boom and later slump to steady growth and profits, making it one of the few healthcare startups ready to go public. Its IPO will be watched closely to gauge investor interest in diagnostics companies after COVID-19.

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