Shares of Pune-based diagnostics center Krsnaa Diagnostics zoomed over 4% today as investors reacted positively to the company’s results announcements, including a 23% YoY revenue growth.

For the quarter ended in March 2023, the company reported revenues of Rs 133.23 crores, 23% higher annually. Expenses saw a significant spike during the quarter as the material costs doubled while the employee costs surged 40% during the quarter. As a result, total expenses jumped 25% to Rs 115.57 crores. EBITDA improved by 26% while profits for the quarter grew 5% to Rs 18.92 crores.

For the full year, the company reported revenues of Rs 487.12 crores, up 7% YoY. The core business saw a robust growth of 15% during the year. Contribution of the radiology division improved to 56% as that of the Covid and Pathology departments declined sharply. The number of tests carried out during the year grew by 39% while the number of patients improved by 9% YoY.

The company had higher expenses during the year as material and employee costs, which account for 35% of total costs grew 23% and 38% respectively while miscellaneous expenses surged 33%. Such higher expenses offset the benefit of higher revenues as EBITDA declined by 7% while the EBITDA margin fell by almost 400 bps to 25.4%.

As a result, the company reported a profit of Rs 62.11 crores, down 9.2% from Rs 68.39 crores reported in FY22.

The company’s Board has recommended a final dividend of Rs 2.75 per share for FY23 which is pending shareholders' approval. The share of Krsnaa Diagnostics was trading around Rs 525.15 per share, up 4.2%.