Shares of MedPlus Health Services Ltd, a leading Indian pharmacy retail chain, surged more than 18 percent in trade on Friday after the company’s earnings for the quarter ended March 2023 beat estimates.

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The company's revenue jumped by 30 percent year-on-year to Rs 1,253 crore during the March quarter. This was 25 percent more than Axis Capital’s revenue estimate of Rs 1,203 crore.

Operating income, or EBITDA (earnings before interest, tax, depreciation and amortisation), grew by 25 percent to Rs 81.63 crore during the quarter from Rs 65.32 crore a year ago. The figure was higher than the estimate of Rs 71.2 crore. EBITDA margin fell 50 basis points from last year to 6.5 percent, but turned out to be better than the 6 percent estimate.

Net profit for the period stood at Rs 26 crore, higher than the Axis Capital estimate of Rs 14.9 crore. On a year-on-year basis, the company's bottomline grew by 133 percent.

The company added 265 stores during the March quarter, of which 152 stores were beyond tier-1 cities. It further said that 65 percent of the stores that it opened in the first half of financial year 2023 (April-September) have achieved breakeven within six months of operations.

Revenue from mature stores, or stores that are operational for more than 12 months, increased by 15.3 percent year-on-year, while EBITDA margin stood at 10.3 percent.

MedPlus also said that its diagnostic pilot is progressing well and it aims to have three full service centres and over 100 collection centres of its own.

For the full year, MedPlus said revenue rose 21 percent to Rs 4,557.6 crore compared with Rs 3779.3 crore in FY22.

MedPlus Health Services shares are trading 18.3 percent higher at Rs 813.05. Today's surge has taken the stock past its IPO price of Rs 796.

Also Read: Medplus Health Services concentrating on Tier-2 and 3 cities to achieve faster breakeven

First Published:May 26, 2023 11:27 AM IST