Metropolis Healthcare Limited — PPTs, 09-12-2024: Investor Presentation

### Financial Highlights:

Metropolis Healthcare is set to acquire a 100% stake in Core Diagnostics for an equity value of ₹246.8 Cr (2.2x FY24 revenue). The deal will be financed through a combination of 45% equity swap and 55% cash. The acquisition is expected to be EPS accretive from FY26, while Return on Capital Employed (RoCE) and Return on Equity (RoE) will experience slight compression in FY26 but show strong recovery, tracking upwards from FY27, ultimately becoming accretive by FY28.

### Strategic Initiatives and Growth Drivers:

This acquisition positions Metropolis to leverage Core's established presence in the oncology testing market, particularly in North and East India. Core Diagnostics specializes in high-end oncology tests, contributing 85% of its revenue from specialized testing. The strategic focus will be on enhancing Metropolis' capabilities in advanced cancer diagnostics and expanding its geographical reach.

### Business Developments:

Core Diagnostics, founded in 2012, boasts a robust portfolio with over 1,300 tests and a notable 22% revenue CAGR from FY22 to FY24. Metropolis plans to integrate Core's operations, enhancing its testing capabilities and cross-selling opportunities across a comprehensive range of diagnostic services.

### Market Position and Competitive Advantage:

The acquisition solidifies Metropolis' leadership in the oncology diagnostics sector, allowing for improved connections with hospitals and oncologists. Core’s expanded testing menu and established client base will serve as a valuable asset for driving revenue synergies and optimizing operations.

### Investor Implications:

This strategic acquisition represents a strong growth opportunity for investors, providing access to a thriving oncology market projected to grow at a CAGR of 17.5% through 2028. Metropolis is positioned well to capture this growth while reinforcing its leadership in advanced diagnostics, indicating a positive outlook for future earnings.