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CitiusTech’s revenue crosses Rs 3,500 Cr in FY23; profit tanks 85%

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B2B health tech platform CitiusTech has grown steadily over the past few fiscal years. The company recently claimed that it clocked $500 million revenue during FY24 which seems plausible considering its FY23 numbers. CitiusTech’s revenue from operations grew 40% to Rs 3,499 crore in FY23 from Rs 2,499 in FY22, its consolidated financial statements filed with the Registrar of Companies (RoC) show. CitiusTech is a healthcare technology service and solutions provider which offers consulting, engineering, manufacturing and data oriented softwares to large hospitals and healthcare organizations. The sale of its software development, implementation, and support services comprised 97% of the company’s total revenue while the remaining income came from the sale and maintenance of software licenses. CitiusTech also made Rs 63 crore from non-operating activities which helped it post Rs 3,561 crore in total revenue during FY23. Similar to other technology-driven companies, its employee benefits formed 74% of the overall expenditure. This cost grew by 42.5% to Rs 2,137 crore in FY23 from Rs 1,500 crore in FY22. The firm’s burn on traveling, legal, training, consultancy, advertising, software cum licensing, and other overheads took its overall cost up by 38% to Rs 2,873 crore in FY23 from Rs 2,082 crore in FY22. See TheKredible for the detailed expenditure. Expenses Breakdown Total ₹ 2,082 Cr https://thekredible.com/company/citiustech/financials View Full Data To access complete data, visithttps://thekredible.com/company/citiustech/financials Total ₹ 2,873 Cr https://thekredible.com/company/citiustech/financials View Full Data To access complete data, visithttps://thekredible.com/company/citiustech/financials Employee benefit Employee benefit Travelling conveyance Travelling conveyance Legal professional Legal professional Training recruitment Training recruitment Consultancy charges Consultancy charges Sales and marketing Sales and marketing Software and license Software and license Others To check complete Expense Breakdown visit thekredible.com View full data The significant rise in its employee benefits and consultancy led profits decline by 84.7% to Rs 56 crore in FY23 from Rs 365 crore in FY22. Its ROCE and EBITDA margins stood at 6% and 6.5%, respectively. On a unit level, it spent Rs 0.82 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin 19% 6.5% Expense/₹ of Op Revenue ₹0.83 ₹0.82 ROCE 24% 6% The healthcare-focused firm ticks all the right boxes when it comes to operations, from a global outlook, to a legacy of experience(especially important in healthcare), marquee clients and a demonstrated ability to adapt. CitiusTech seems well placed for an IPO at some stage, in India or outside, and could well be a very enticing acquisition target as well.