Pharmacy major MedPlus Health Services plans to sustain its growth by expanding its number of stores, with most of the recent expansion taking place in tier-2 and 3 cities. The company believes tier-2 cities are particularly favourable for the company in terms of achieving faster breakeven levels.

Speaking to CNBC-TV18, Gangadi Madhukar Reddy, MD & CEO at MedPlus Health Services said, “The tier-2 actually, as far as profitability and breakeven is concerned is more favourable. The top line is slightly lesser by around 10 percent or so, but the overall EBITDA and overall, the path to profitability is actually faster.”

He added, “We also feel that tier-2 is again a place where the value proposition which we have resonates equally well.”

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According to Reddy, a significant portion of the company's recent growth can be attributed to the addition of new stores. The company plans to sustain this growth

He said, “We expect to grow our stores at the same level and we also expect the overall growth in the company to be roughly around the same.”

Finally, Reddy mentioned that the company has around 60,000 subscriptions in the pathology and radiology space, a testament to the company's commitment to providing comprehensive healthcare services to its customers.

He said, “Till the end of last quarter, I think we have had in excess of 60,000 memberships overall. So the membership model continues, people buy into the overall company's offerings through membership and once they are there, they become very sticky. So we are seeing that part of the thing play out for us.”

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MedPlus posted a good set of Q3 FY23 numbers, revenue was up 27 percent, and however, profit is lower due to a high base on a year-on-year basis.

(Edited by : Abhishek Jha)

First Published:Feb 6, 2023 2:38 PM IST