Q4 20/21

May 21, 2021

Ladies and gentlemen, good day and welcome to Doctor. Lalpak Labs Q4 FY 'twenty one Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Anishit Selanggi of CDR India. Thank you, and over to you, sir. Thank you. Good evening, everyone, and welcome to Doctor. Lal FAP Labs' Q4 FY 'twenty one earnings conference call. Today, we are joined by senior members of the management team, including honorable pejorative Doctor. Arvind Lal, Executive Chairman Doctor. Om Prakash Manchanda, Managing Director Mr. Bharat, CEO Mr. Vip Prakash Kaur, CFO and Mr. Rajat Kalra, Company's Equity and Head of Investor Relations. Let me share our disclaimer here. Some of the statements made on today's call could be forward looking in nature and the actual results could vary from these forward looking statements. A more detailed statement in this regard is available in the results presentation, which has been circulated to you earlier and also available on the Stock Exchange website. I would now request Mr. Doctor. Wang to share his perspectives with you. Thank you and over to you, sir. Thank you very much. Good evening, ladies and gentlemen, and thanks for joining us today for the Bacalal Aircraft Q4 FY 'twenty one earnings conference call. Healthcare and Practicing COVID-nineteen reported behavior has gained the highest significance within our society in response to the persistent pandemic. Citizens are making immunity boosting habits with vaccination our priority. Simultaneously, awareness around wellness and preventive health checkups is also building. Corporate can likely more than ever to encourage our co op employees to do her health check packages to manage and take responsibility of their own health. This does help us with our aspiration of being the leading branded customer or consumer health care provider offering complete diagnostic testing services with wide accessibility. As you are all aware, at this time last year, we experienced the initial phase of the lockdown, whereas this year, we have had to contend with a very strongly resurgent setting rate. With cases on the rise at a higher rate than before, the need for quality testing that is both accessible and affordable has seen a commensurate increase. The strategic decision taken by the management at the onset of this pandemic to form a dedicated task force to basically address the requirements for COVID and non COVID symptoms, respectively, ensured that we were never found wanting in servicing our patients and clients at any time. With these 2 key orders being made, in the present scenario, we have redoubled our efforts to maintain high levels of service across the network, as demonstrated last year during the first phase of the epidemic. Established national teams are better equipped on account of their scale, experience and capability. From an accuracy reporting perspective, the BLC brand stands heads and shoulders above the rest. We have an interest investment in technology. We can monitor all our land for every single transaction on the quality front on a near real time basis and thereby travel to deliver and whenever the need arises. Such operational variance is unique within an industry that is largely unregulated and fragmented. Work on further extending our testing network, enhancing the capacity and capability of existing land has continued in the past year. As a reference to drive efficiencies and productivity across our operations, patient behavior too has evolved during the period with higher preference for online interaction coupled with sample collection at home. Our technology enabled infrastructure backbone has allowed us the flexibility to make these adjustments to our model smoothly. Using our extensive network of patient service centers, we have been able to scale up home collection services, crucially the management of the pandemic. With the right direction and execution, we are geared to extend our leadership beyond the core geographies. The teams experience brand engagement that is possible for leading teams like BLPL is difficult to replicate readily. We believe that we have the right approach to serve the healthcare requirements of the nation and are confident of guiding our best in class operating model through the prime time and refocusing on the long term agenda in the best world. With that, I would like to hand over the call to Om to share his thoughts. Thank you very much. Thank you, Doctor. Lal. Good evening, everybody, and thank you for joining us on today's call. I would like to take this opportunity to share my thoughts on the industry, our initiatives and the way forward. The past year actually is extremely challenging year for all the stakeholders. The talent still continues and has further gone up in the current financial year. In these trying times, we've seen our goal as that of a big purpose. To the best of our ability, we have tried to continue our operations around the clock wherever required, service our patients at their own steps, taken care of needs of their travelers, taken care of our employee welfare and worked with various authorities to comply with various requirements. Our leadership team has remained in constant touch with the phlebotomist, field executives and lab operations staff to keep their morale high. The current crisis also has shifted the ability of our operation model to take sudden spikes in demand and simultaneous shortage in supply. Our employees have shown a lot of resilience in these times. Given our established presence nationwide, we could play a role in scaling up the RT PCR testing bandwidth across the country. Our network was able to accommodate the sample flow during the lockdown phase, both across the COVID and non COVID segments. Moreover, with wider prevalence of RT PCR testing and our enhanced home collection offering, Doctor. Lalbhat's lab brand could attract a newer set of patients in the B2C segment. The key feature of our pandemic SOP was to optimally utilize optimally use our established network infrastructure by leveraging technology. Given how we have already embedded technology deeply into our operations, we could accommodate the transition in patient behavior from walking to home collections very smoothly. Booking of collections, receiving reports, etcetera, had been very crucial during the pandemic to provide our patients with quality diagnostics they desired in extremely seamless manner. When a small lab organizes home visits versus Doctor. Lal Pyepla has been doing it, there is a vast difference in the hygiene quality processes and convenience part is better, being better in our case. We have around 3,700 BSEs with us geo map and thereby we are able to prove all our service requests centrally and optimize usage across the network. Talking about our overall strategy at a macro level, we continue to grow rest of India business, especially west and east regions, thereby further moving towards geographical broad basing of revenue contribution. Contribution from rest of India ex Delhi NCR has increased and it now stands at 64.8%. Even though the contribution from VDNCR is getting now smaller, but we still continue to enjoy healthy margins on the back of better realized in the scale. Our plans to widen our footprint are on track, and very soon we will be commissioning new regional reference labs, 1 each at Mumbai and Bangalore. These labs will be supported by a number of satellite labs in the areas and an effective network of PFTs. Concurrently, our approach of acquiring smaller and portable pyramid chains, Green Fire, which is our subsidiary, has started now giving us meaningful business. Our efforts will continue in this direction, and this will further help us feed the clusters that we are trying to build in South industrial markets. With that, I conclude my opening remarks and will now request Bharat to take you through the operating performance of the company. Over to you, Bharat. Thanks, Son. Good evening, everyone, and welcome to our Q4 'twenty one earnings call. I hope all of you are feeling safe and well. Q4 'twenty one was an even full quarter with an encouraging trend month on month of non COVID business recovery with walk in and B2C channel recovery clearly visible, along with continued robust growth in our PUP business. This enabled us to register a Q3 a Q4 versus Q3 sequential growth in long COVID business as well. As the intensity of the first wave subsided, the COVID portfolio saw us decline sequentially with respect to Q3 'twenty. All this cumulatively resulted in us recording revenue of INR 4.31 crores with a growth of 42.9%. We served 5.9 lakh patients, a growth of 33.3%. We carried out 4.5 lakh RTD set tests in this quarter. It was heartening to see a Delhi LCR region returning back to growth and rest of India continuing its strong growth momentum. Our Swapsip program also saw an increase in contribution to 19% of non COVID revenues, up 300 basis points from last year same quarter. Our high end portfolio, including Genomics focused Genevolve division, continues its strong growth momentum led by focus on key therapy areas. Q4 'twenty one also saw us making progress on our previously stated objectives of South Invest expansion with satellite labs opening and also construction being progressed on our new reference labs. Our past few quarters' efforts in South Invest across both organic and inorganic are also leading increasing response. Stock index contribution in our business has moved up 3 40 basis points versus last year same quarter on total business and 1 40 basis points on non COVID. In Q4 2021, we also launched a new patient app. Our other technology cutting across digital as well as lab and medical side continues to make good progress. As we look back on FY 2021, it was indeed a challenging year operationally, but it also helped us get better served patients at large, leveraging our expanding geographic coverage, medical, digital and people capabilities to enable us to progress towards a vision of being the most trusted healthcare partner enabling healthier lives. Thank you. Dave, over to you. Thank you, Bharat. Good evening, everyone, and thanks for being on this call today. I'm now sharing some of the important financial highlights. Revenue for Q4 FY 'twenty one is at INR 4.31 crores as compared to INR 301.7 crores in last year same quarter, a growth of 42.9 percent. Revenue for the year FY 2021 is at INR15.8 1.3 crores as compared to INR13.4 crores in last year FY 2020, a growth of 18.9 percent. Revenue contribution from COVID RT PCR antibodies and Allied tests in Q4 and full year FY 2021 is at 11.2% and 18.3% respectively. Out of this, a live test that is IL-six and D dimers is about 12% of our total COVID portfolio revenue in Q4 FY21. Revenue realization per patient for Q4 FY21 is higher at INR 733 as against INR 684 for last year same period. The higher revenue realization is mainly due to COVID portfolio and higher sample per patient in our non COVID business. Normalized EBITDA after eliminating the impact of stock based compensation and CSR expense in Q4 FY21 stood at INR 129.5 crores as compared to INR 64.2 crores reported in Q4 FY 2020, a growth of 101.7 percent. Full year FY 2021 normalized OIBDA stood at INR 462.6 crores as against INR 365.6 crores last year. PBT for Q4 FY21 is at INR 110.8 crores as against INR 45.4 crores in Q4 FY 2020, a growth of 144 percent. PBT for the full year FY 2021 is at INR394.4 crores, against INR 310.5 crores in last year. Paired for Q4 FY 'twenty one is at INR 85.1 crores as against INR 32.6 crores in Q4 FY 'twenty, a growth of 161%. Paired for the full year, FY 'twenty one is at INR296.5 crores against INR 227.6 crores in last year, a growth of 30%. Basic EPS for Q4 FY 'twenty one is INR10.1 per share versus INR3.94 in the same quarter last year. EPS for the year FY 'twenty one is INR35.33 INR 35.33 versus INR 27.42 last year. Investments in FB and mutual funds, including cash and bank balances at the end of March 31, 2021, is at INR985.9 crores. We are pleased to share that the Board of Directors of the company has approved a final dividend of 80% that is INR8 per equity share. With this final dividend, total dividend for the year FY21 is 200% that is INR20 per equity share. In spite of extraordinary situation and COVID-nineteen pandemic, we have added 15 laps and close to 600 collection centers and 2,200 BOPs in FY 2021. This includes close to 70 collection centers and around 900 POPs headed through acquisition under our subsidiary PAC Labs Unifiers. Further, our efforts towards automation and digital initiatives are performing well, and we are able to optimize our margins and maintain our DSOs, inventories and whole supply chain under control. That brings me to the conclusion of my opening remarks, and I will now request the moderator to open the forum for Q and A. Thank you. Thank you very much. We will now begin the question and answer session. The first question is from the line of Chandra Molli from Goldman Sachs. Please go ahead. Hi, good evening. Thanks for taking my question. My first question is on the non COVID realization. I think the previous quarter, the non COVID realization for patients was about INR 7.45. And if I estimated right, this quarter, it seems to be around the mid sort of 710 to 715 range. So just trying to understand if there's any factors that have changed in your queue, if it's down to maybe different sort of mix in home collection business or the mix of test has changed. Just trying to understand if there's any anything structural there. Thank you. Ved, do you want to take this question? Yes. Hi, Chandel. This is Ved. Our realization for patient has gone up overall, which is in Q4, 733. But if we take out the COVID related patients, our artificial and allied cast, the realization per patient is INR715 per patient. However, as you know, this realization is increased due to two factors. 1 is of course COVID, but other than non COVID business also shown some increase due to test per patient has gone up. So overall, if you see the test per patient is seeing flat, but if we remove COVID RT PCR patients out of this, then our number of test per patient has gone up. So that is the main reason and there is some bit of test mix change also in this quarter. Got it. That's helpful. The second question is If I may broadly add to I think if I read the question carefully, I think you're trying to understand is the long term revenue potential going either downward or upward or is there any impact on that, right? That's right. So there are two factors that may be operating that are operating on this long COVID revenue potential either way, okay? What happens when there is a lockdown, we have noticed that normally the routine tests, which are like sugar panel and the low realization tests, they actually tend to go down because they are somewhat decreasing in nature, but high end tests continue to remain. Once there's contribution growth, we have a lot of background revenue per patient going up for that quarter. Sometimes now, as we've seen, the illnesses are very, very high and doctors tend to prescribe more and more tests as they prohibit rate tests for patients. So that time also we see revenue per patient going up. But the moment lockdown gets lifted up and we have more flow of non COVID patients coming in, we tend to come back to the normal revenue per patient. So my sense is in a stable scenario, non COVID revenue per patient will remain the same. But we have definitely seen a higher contribution of specialized tests in the last few quarters that actually is having a slightly better impact on revenue per patient. Got it. Got it. And just follow-up to that. So the higher specialized tests within the non COVID space for the last few quarters, do you think this is byproduct of the pandemic? Or is this something that you think is more structural, this is from where you're taking from between that you think? It's actually byproduct of you will notice that our volume growth is not that high. And most of the volumes that have dropped are of routine tests. So the moment routine tests go away, you tend to have a higher revenue for patients. It's a byproduct of multiple things, but if I were to pick up 2 or 3 factors: number 1, more volume growth, which that means the contribution from high end test is higher the second factor is number of tests per patient also have gone up that results into higher realization per patient And number 3 also is that, especially we will talk about this as we go along, you will see some of these COVID-nineteen related tests, which are benign or high risk, they also have a higher realization that tends to impact our overall realization. Got it. Got it. That's very helpful. My second question is on the 2nd COVID wave that we've seen over the past couple of months. I think in the 1st COVID wave in the June quarter last year, we saw a 35%, 36% decline in volumes on the non COVID side. So just in comparison to that period, what has been the experience in the 2nd wave in context of data gen Sorry, I was on mute there. Sorry. Maybe I'll start again. I think 2nd wave is quite different from the 1st wave. And most of the trials, by the way, through media and WhatsApp machines that are going around. But I'll still try and based on my understanding, the way I see the difference between 1st and second wave. In second wave, we saw a lot of patients actually going to hospitalization. And we also saw unfortunately very tragic, very sad, higher death rate as well. Now that actually had impact on COVID-nineteen alive test going up. If you recall, in earlier quarter, we started talking about COVID-nineteen alive test. And there are 4 or 5 such tests, which are actually infinitely matters, we saw a sudden spike in these tests in day 2, which actually was too much lesser explained in the day 1. That's a big difference I found. I think that if I were to pick 1, this is the big one. Got it, got it. And just last follow-up to this Otherwise, overall, the cases have so many, so the volume of testing has been much higher in Wave 2 than in Wave 1. Got it. Got it. And just a final follow-up to this. Just my understanding, in the June quarter last year, there was sort of a stigma for patients to go into patient service centers, give their blood samples. Is that something that's recurring now in the 2nd wave? Or do you think that Sigma is something that's much lower? No, there is no stigma per se now. I think earlier people were really hesitant to get tested now. I don't think that's behind us. But people are still hesitant to go to a center with, for example, they always prefer for home collection because they think we rightly thought that it's much safer. But we have actually tried to manage our patients through both ways because at some point in time, we found that home collection capacity is constrained as a result of a sudden spike in demand, we really couldn't catch up to the pace to catch up with the demand because many of our own employees also got impacted by COVID. So we did try especially in Delhi NCR to open up dedicated collection centers only for COVID. But there was no such hesitation on behalf of patients because once we told them that it's very difficult to do home collections, we did direct them to the nearest dedicated collection center for COVID. And Bharat, if you can add to this, I think we found a lot of people coming to our centralized collection center as well, right? Yes, indeed, Rohin. We saw good traffic in our PDC center as we call them. So that was a very large portion of what we collected for COVID RT PCR samples. Yes, the only large requests for home collection there from people who are really positive are from senior citizens. But otherwise, rest of them would come to CDC without any problem. Got it. That's very helpful. Thank you very much and all the best. Thank you. A request to all the participants. Please restrict to 2 questions per participant. If time permits, please come back in the question queue for a follow-up question. The next question is from the line of Preeti from JP Morgan. Please go ahead. Yes. Thank you for taking my question. My first question is on the non COVID recovery that was happening in the Q4. Given we didn't have a national lockdown during the 2nd wave, but is it fair to say that the entire recovery didn't really fizzle off off of the GCM similar impact like we saw last year on the non COVID business this time around it? You didn't say when the current lockdown, which is not a bad state of lockdown as we saw last year, right? That's the national lockdown now. This time we've been in. So I think it's a good question. I think the impact that we had last year on long COVID was very severe. But to say that in this lockdown, there is no impact on non COVID, that's not true. We have seen a depression in our non COVID flow as well. But to me, that's not really captured in Q4 because of I think Maharashtra saw it in early March, Delhi saw it end of March early April. So just short answer to your question is if there is a lockdown, is there any adverse impact on non COVID business? Answer is yes. Is it that severe as it was last year? Answer is no. Okay. So it will be more depending on which that number would change. So it's not I can't assume that that impact is similar to the last 2 months. Yes, because at least the patient moment that they are allowed for essential services will still go out. Last year, it was very, very difficult. Actually, people are just working. Out. So this time, people are cautious, but they are still coming out to forget the test chip. Understood. So during week to week basis, it's very difficult to comment as to how it is going to sign out. Yes, yes. Very much. My second question is on the entire home collection business. You did mention in your opening remarks that there was month on month recovery on the non COVID side, both in the boxing and the DTC. Therefore, if you could just give us a sense of some sense on how much did the home collection come off as seen went to some state of normal in the March quarter? And should that help us in terms of this, what would be normalized home collection on this? Right. Bharat, you want to take this question? Sure, Ram. So first of all, on the B2C side, we saw a recovery coming through Jan to Feb to March on the lab walk in and the PSC side of the business. Number 2, the home collection business, it depends actually on the COVID base. Then the steady state of business, which we have seen about 2x, 2.5x. We don't give out channel wide split of revenue at this stage. So I'll be constrained by that guidance. But yes, we saw a sharp increase, about 2x, 2.5x of what normally we would do in Home Collection. And that run rate continues to remain on a steady basis even now. What we have done, like Doctor. Ghoh mentioned in his opening speech, is that we have been able to leverage our collection center network to further augment this upside which we saw. So we take the leads, provide it to them and they do the home collections at a nearby point at the last mile being handled by them. And we monitor the service level centrally. Okay. So just to add to what Bharat is trying to say, if you look at Zena, can you hear me? Yes, sir. I can. Hello. So there are 4 main revenue streams. 1 is home collection, second is walk ins, third is through connection centers and 4th is our pickup point. Whenever there is a lockdown, the worst affected is walk ins because people hesitate to come to a large format where there is a bit of a crowd. And lots of that channel tends to shift to 2 main other channels. 1 is home collection, so people prefer home collections. But entire thing does not shift to home collection. Home collection may be value and clear as we do that, but start to the area, it actually tends to shift to collection better because collection center is a small format. It's about GBP 150 crores per day. There's not too much crowd out there. So the walk in is the worst affected, benefit flows into collection center and it flows into home collection. That's the way normally what happens when there's a lockdown. When the lockdown restrictions actually get lifted up, people are looking less anxious. We have seen walk ins coming back as well, and that is the impact we saw in Q4. And suddenly, this wave 2 happened, and then we are back to square Understood. And sorry if I missed this one. One last question. Based on the employee cost in this quarter, is this a normalized run rate that we should be assuming? Or is there any one off in this quarter's number? Yes. So, Neha, this is usual. We haven't taken any one off item. I think you may be referring to new age code, which is not yet factored in. Having said that, last year, as it was not usual here, as increments and all that stuff was not fully factored for the full year. So I mean this is truly not representative of what we usually we have on a personal cost basis. Understood. Thank you so much. Thank you. The next question is from the line of Sriram Rathi from ICICI Securities. Please go ahead. Yes, thanks for the opportunity. So firstly, just wanted to understand on the COVID revenue. So at current prices, which has already reduced significantly, is this like at the Erika margin level, is that business dilutive of the overall competitive margins So I think I'll take this question. It's a great question. And see what has actually happened, I have tried to analyze the whole period of last 12 months. There was a period when we had a sudden fall in our non COVID business. So in that time, we were looking at COVID business in its entirety, just to tell from loss revenue to EBITDA. But as COVID as non COVID revenue started coming back, we actually had a very good operating leverage in the system. Like lots of because if you study our P and L, we have close to 48%, 50% of our cost structure is very fixed in nature. So at a gross margin level, we are not worked off even at current prices. If we are able to leverage our current infrastructure with the space, people, logistics, we are able to manage it very well. I think and plus with the revenue going up and plus a couple of other factors like we saw in May 2, you do home collection, you go for 1 person. We found that number of samples collected per visit per person also was very high design. So that also helped us. Number of tests per patient also per visit also high. That also helped us. So we actually could use some of this leverage to manage the margins better. So if you take COVID business in isolation, and somebody can say, yes, it is dilutive. But if you take it along with the rest of the business that we have, so we are able to leverage it better. So we are able to manage everything well so far. Okay. Got it. Got it. That's very helpful, sir. The only thing will happen if the non COVID business does not go back, goes down, then there will be a challenge. But I think we have recovered quite a bit on non COVID. And you could go back a couple of quarters back and we used to say that we have not allowed any dilution of effort on noncore because we realized early in the year itself that if you don't put focus on noncore, it's going to become 70. So that has really paid us well during the year. Okay. Got it. Okay. And just secondly, on the non COVID business, you mentioned that there is some impact because of the lockdown. So is it fair to assume that, I mean, the business will be below normal level currently, like in the last 10 months on an offline? Actually, it's very difficult to say, Harini. I know you're trying to ask more about the recent weeks. But my general understanding is that in health care, because the demand lost today doesn't mean demand is completely lost. People are delaying it, but unfortunately in health care, you can't really avoid sometimes these things. So they said to come up, people are waiting and watching. And now I know fortunately, positive rate is coming down, cases are coming down. As these opens up, we do believe that it will come back. And I'm talking from the experience of the last 4 quarters because we also panicked a little bit in the Q1 when the long COVID fell as the first one will happen. But I did see a recovery happening. And it was not only completely new demand. It was actually old demand, which could not be serviced in the Q1, came back in Q2. I'm not sure if I see some depression in sales in these weeks, and I will say, this is not going to be same going forward. I think there's always some recovery of non COVID demand coming back later in the same. But as I mentioned that BPO is fluctuation is so high, it's very difficult to actually tell it pattern. But over a longer period, I think non COVID will come back. I don't think we'll lose this demand. Sure, sir. So just to follow-up to that, I mean, like in the last quarter, we had, I mean, more or less flattish kind of revenue because of the impact from the COVID-1st wave. And on that base, we have grown around 26% out this year in this quarter. And now if I look at FY 21, we have a holding decline of around 3% to 4% in the loan growth business. So as we need other things become normal sooner, I mean, can we expect like, I mean, the growth can actually be like very high time like we are doing quarter 4 for FY22. Just qualitatively, you can. Yes, relatively in terms of tailwind, yes, clearly there is a base advantage, right? So because Q1 is so low, we can definitely benefit into the growth. I think the recovery started in Q3 onwards. So definitely, to what extent, there will be an advantage to the non COVID business growth this year in FY 2022. But we also haven't seen how lockdown really happened because in fact when we're sitting in the month of March, early March, we never anticipated that there's going to be a day 2 and it's going to impact the whole thing. And as I mentioned, the moment we have a very strict lockdown, non COVID business does go down. And the moment the pieces are lifted up, it tends to come back. So I it's very difficult for me to actually project a trajectory of COVID for next few months. Non COVID business in terms of maintenance will all depend on how COVID project is doing. But overall, base advantage definitely is the biggest on what COVID. Got it. Got it. So lastly, just one question. In terms of your sample per second, which that has been consistently improved over the years. Now this quarter, it was close to 2.7 samples per session. So I mean, we have seen that in the last 3, 4 years, the proportion of bundled tests is more or less in the range of 13% to 16%, but this ratio continues to improve. So just wanted to understand, I mean, what can be optimum level? Is there anything which you are in mind that, I mean, we can reach to this kind of level in terms of the ratio? See, I think there are 2 big variables for this. One variable is what is the sort of a ticker price of a panel? As you rightly picked up as a contribution of services goes up or there are other panels tend to go up, It has a favorable impact on 2 people, large doctors tend to prescribe panel. Patients also don't mind because they say, okay, fine, with high test, I can get more tests. So I actually get to bring some value of additional information to additional tests as well. So as long as we have we are able to creatively price these panels around some number like 1500, you tend to see that prescription habits as well as patient desire tend to move from a single or 2 test or 3 test to a panel test. And panels obviously will have battery effect like 8 or 10 in some of these first fit panels value on 20 test also. So that's one big variable that is there for this number to move up. The second is as practice of medicine itself, because it's becoming more evidence based, awareness about sorry, health awareness is so much these days that, once we patients tend to ask a lot of questions to doctors saying that, okay, why are you doing this, why are you doing that? And they also want to use more tests to develop, which as the practice of medicine tends to become evidence based, this number also will go up. And if I were to benchmark with Western world, there of course, somebody else pays for the test because they're all insurance covered. It's not out of pocket market. There the number is as high as close to 10 per patient. So I'm not saying we can go to that number, but it gives you an idea as to where it can go. But definitely, this number will have a tendency to go up rather than go down. Sure, sir. That's really helpful. Thank you so much. Thank you. I request all the participants. Please proceed to 2 questions per participant. If time permits, please come back in the question queue for a follow-up question. The next question is from the line of Shagun Kumar from UBS Securities. Please go ahead. Yes. Thank you so much for the opportunity. Just want to know what's your current capacity of RT PCR? And second, when you're looking at COVID alight testing, is it that alight test is coming from a COVID positive patient? Or is it certain test you're qualifying as COVID alight test? So we are actually putting COVID Alight test, wait, correct me if I'm wrong, there are about 5 or 6 tests which are specific cluster. And majority of the revenue coming from these 2 tests, which is B dimer and IL-six and then there are 3rd test CRP as well. But CRP test is done in many other solutions. I think B dimer and IL-six are the 2 tests which are primarily suddenly have come up in our portfolio due to COVID. So that's where and we picked it up very early on. In fact, if you recall, we started showing these numbers much early. We knew that there is a tendency of V set to go up, and hence we wanted to take it out of our non COVID business. So today also we if you see our presentation, you will see a non COVID that there is a COVID Allied which consists of 5 or 6 rates, is there a 6 test or 5 test? So for this quarter, we are categorized only 2 tests, IL-six and DRAMR. Okay. Because we have many ones. Yes. Yes. Many. There are 2 tests, IL-six and V dimer. The reason why we have taken out is because it's easy to relate to COVID because other tests are still common with other conditions as well. So that's why we have not picked it up into a life. So IL-six and G dimer are 2 patients of very, very important patients, COVID situation. That's why we have identified this opportunity. Now your question second question was is that why it's going up and how we delivered COVID positive patients, something like this. What was the question? One question is, is it you're only capturing these tests, are you capturing that as coming from COVID positive patients? Sorry to interrupt you. We are losing your audio. I'm sorry. We are not If you haven't listened to the question, it is primarily coming on account of doctor prescription. And I think it is most of these tests would be from COVID positive because when one is diagnosed as positive, then you are actually consulting a doctor and doctors are advising these tests whether it's 4th or 6th day or later. So it gives you to doctor prescription these tests are coming. And the current capacity of RT PCR test, How the test are we? So RT PCR capacity to be seen in 2 ways. Number 1, it should be seen as a number of locations within this test. We when we started in April 2020, we had only one lab in one state, which is Delhi, and it was done in our main lab in Rohini. And we finished 31st March, I think the number has gone up to 14 labs, right, Bharat? Yes, indeed. Yes, 14 labs. And now we've added some more labs in April and May as well. So that's why this number is very dynamic. And today, if I recall, the number has gone up to about 17 odd labs in our system. So that is one way to look at capacity. And these 17 labs are spread across 13 states. And this number I'm telling you as of today is not really as of 31st March. That's one way to look at it. 2nd is D dimer and IL SIP. The good news is that it is much more spread out. I think close to 60 or 70 are all have the greenfield test. So BBIR and IL-six availability is much wider than just like RT PCR. Now next way to look at the capacity is number of tests that we can do. And I hand over this question to Bharat to talk about because capacity actually has 2 elements. 1 is the people capacity which So capacity wise, I there are a couple of things that So capacity wise, I, there are 2 angles to this. Like Doctor. Ram mentioned that there is a machining capacity, which is the number of tests with the artificial machine can do on a per 3 hour shift basis, 3, 3.5 hour shift basis. The second is around the people and the crew required to manage the entire lab operations, right from registration to getting the box open to putting the utilizing buffer and so on. The other capacity on the demand side is on collection capacity. Now that really depends on how you manage your mix. Is that driven by home collections? Is it driven by COVID dedicated centers? Are you doing large government contracts and so on? So what we effectively do is to run this like a network of labs. When we began last year, each state had considerations saying you cannot move sample out of my state. Today, the states have realized that they can allow samples to move across. It's just that the attack has to be maintained, the reporting accuracy has to be maintained. So leveraging technology, we run our entire operations like a network of labs, network of sites, and we are able to plant chips samples in case one location overflows with sample on that particular day. So this demand is also on an everyday basis. It is not what you would call, we establish a pattern and then able to manage capacities. From a machining or a people perspective, I think I don't think we have a real challenge on increasing capacity even further if we want to. Collection and we have a bit of reporting tends to be bottlenecks at points of time. But otherwise, we are very comfortable on capacity. But considering all the bottlenecks, how many tests can we do bare minimum on a daily basis? See, we can do about we have surplus capacity of about 30%, 40% more than what we currently have done at peak. But any number that what's the capacity, maybe capacity what we can do? Test wise? That's the reason why Indval is not also the Yes, I think the challenge that we have in sharing that with us is because it depends on what channel you took us. So if you like to take more to home collection, the capacity comes down because you are not and then we have another constraint that you have to report within 24 hours. And if you do home collection, data and sample hit the lab, it's only taken 3 terminals. So whole collection way of doing business, your capacity goes down. But if you pick up government samples, then we have a huge capacity. But if I were to since we are insisting on a number, we probably even have gone up to about 25 odd 1,000 samples also per day at a peak level. But as Bharat said that, I don't think we are still sitting we can still always stretch the system a little more. But since we have to keep this constraint of 24 hours reporting, we don't want to comply with that. We want to make sure that our B2C customers will service more because we have a certain time to be able to be able to be able to be. So keeping that in mind, we have even gone to that number as well. But now and these spikes actually happen only for 1 week, 10 days. They are not on a sustained basis every day. And if you look at the trend, it started slowly building up in April. It peaks around 3rd week of April. Now it's just went down. It just it falls flat in overnight as well. So that's why it's so fluctuating on a daily basis. Krishan has RD PCR test every day you will have that number. It just doesn't happen that way. Understood. Why should we share with you the quarterly number, you tend to feel, as I said, divided by 90, which is the 4 days. These things are very, very wide fluctuations. It's just peaks and falls also. There are very, very steep peaks which we see in these numbers The next question is from the line of Malhar Manik from Manik Investments. Please go ahead. Good evening, sir. Congratulations on a good set of numbers and thank you for this opportunity. I have just one question. I believe we are using data analytics based on customer to optimize the location, size, merchandise, etcetera of our collection centers and labs. So I was wondering if you can please elaborate on this, like how does it work, what is our optimization accuracy in terms of an approximate percentage and for how many years have we been collecting this data and ultimately how does this investment in technology culminate in quicker turnaround time for customers? Sure. Yes, I can take the tone. Thank you. So first of all, when you said at the retail location, it is a lot of science but a lot of art as well. And there are various considerations which go behind where you locate a lab or a collection center. Collection center is fairly simple. You locate in high streets or in high throughput locations or in medical hubs effectively. We use certain data techniques and platforms, which I, for competitive reasons, I can't share exact names, to identify locations which are high traffic and then map against where we currently have supply from. As far as lab locations goes in a multiple other considerations, which is real estate availability, plate size, logistics, accessibility, power conditions and so on. So the variables between lab and connection centers are very, very different. Connection centers fairly simple. The good news is that because of our, what do you call, let us say, as we gain more experience in leveraging technology and various style art, our new collection center success rate is very good. We don't drop off the network very soon. In fact, we have separate program to baby care some of the new collection centers. So we have a robust plan in terms of how do we identify locations, which is both evidence based as well as some bit of intuitive and jurisdiction knowledge. Okay. So if a franchisee proposes to set up a lab in a location which is determined as not optimal, then we reject that. Is that true? Indeed. Okay. Clarification is it's not a lab, it is a collection center. We don't typically franchise out our labs. So collection centers, yes, we reject a lot of applications which come from unviable areas. Okay. And approximately, is there any shortage like optimization accuracy which is right now? We don't have a sign perfectly, which I gave you the number at this stage, at least in today's call. But yes, we can go back, check and then maybe cascade it a little bit later. Okay, got it. Thank you so much. Thank you, sir. The next question is from the line of Prakash Kapadia from Anwidded Portfolio Managers. Please go ahead. Yes, thanks for taking my question. Congrats to the team on a good set of numbers in that tough time. So good results. Good sign. So congrats to the team. I have two questions. If I can the diagnostic PRs data, Doctor. Lal has relatively lower COVID contribution to overall revenue. So are we better placed in FY 2022 for predictability of growth assuming the second wave has peaked and do we think that preventive packages will be preferred by customers and that could see increased contribution going forward? And secondly, if I look at the reference labs coming up in South and West, so what are we doing to create awareness, especially in Bangalore and Mumbai? And what's the plan by Doctor. Lal, Because there is already a need which is fulfilled by organized care. So if you could share some insights on these 2 questions that we have. Okay. First question, contribution of COVID to our total business. I think it's a demand driven. We are looking to serve the demand as it comes. So we are not trying to promote it unless we push these rates. So it is a function of disease spread. Some states are affected less, some are affected more. In some states, waves are transformed and some states later. So I think it's clearly a function of that. And also since we are the largest company in India in terms of base, and I think we've done close to a INR250 crores, which is the highest RTTCR turnover in the country, That's my sense. I haven't bought yet all the numbers in place. That as a percentage of our total overall sales figures will definitely be lower because our pace is very large. But having said that, it is to my mind a function of which of the market we are strong. 2nd question related to Bangalore and Bombay, whatever we are doing and how we plan to grow these markets. I think this is this COVID thing, what it has done is that people are now preferring more home collections. And home collection business is not a very easy business to stay. I think in that, difficulty lies in opportunity for us because if we can execute this home collection service better than our competition, then I think we are home. And to me, home collection business actually has 2 broad components to service. One is that how tech savvy you are. And I know that our DNA is not from technology, but I think we are moving rapidly on this path. And also our phlebotomy services people, how courteous they are, how they deal with the patients, the entire customer service, to me, all these put together will act as a big differentiator. So to my mind, that is one big sort of opportunity we are seeing in both these markets in both Bangalore and Bombay because they are very discerning customer members. And market volume is very large. And we are seeing some traction in recent past, which is primarily driven by COVID testing also. And we are very hopeful that we should be able to practice this. And part of the first question, do we think we see increased contribution of bundled packages? Would customers prefer that given whatever the first wave segment we have happened because there is definitely value proposition is better and I think you mentioned customers don't mind of additional debt. Are we seeing that or Yes, I think I missed that question. So as Bharat mentioned in his opening comments that our contribution of Swarth Foote is steadily rising. It clearly shows that the pattern which is going to fall in place and I think about 19% Bharat is a percent? Yes, sir. So 19%, 20% contribution on a basis like us, which is close to 2,000,000 core business, is a fairly large sort of a number which is now coming from these packages. I think if I were to do a scenario analysis, all of us are including me and you are now much more health aware. We will take care of our health very well. So overall, diagnostics is the 1st place to start because most of us have realized that the health is something inside you, not outside. So people would want to get themselves tested. So my belief is that this is definitely a tailwind for health packages to go. Both directly self prescribed as well as also even medical fraternity also would want many of these tests to be done when they have seen a patient. So I think short answer is definitely it's a promising, it's a favorable factor in time to go. Sure, sure. That is helpful. And lastly on the Eastern market, how will we predict it? Was it be like in 3.5? We started our reference lab. Is growth better there? Has it met our expectations? And next year, should we touch INR 300 crores kind of revenue in the Eastern market? Bharat, one second. So I think we are very pleased with what we have achieved in East. It took us some time to ramp up operations in East of India, but I think revenue numbers are really robust and growth is really healthy. And in this COVID situation, KRN has established and carved out a name for itself in the markets it operates in. So we are very pleased with what has happened in the East. And that is something which the learning software is what we are also trying to leverage in as we move forward in South Invest as well. Fine. Thank you. All the best. Thank you very much. Thank you. The next question is from the line of Rahul Agrawal from INKREIT Capital. Please go ahead. Hi, good evening. And heartening to see non COVID volumes bouncing back as well as higher dividends. Two questions. One is on the PSC and PUP side. I noticed PSC per lab ratio is heading up as planned. Last year it was 14, now 16, where you have ended March 21. I wanted to know the lab expansion plan as well as the PSC PUT expansion plan for fiscal 2022. So obviously Mumbai, Bangalore are expected very soon, but if you throw some more light on the balance next 10 months, what kind of lab we're opening? Is there any thought there? And what kind of PSC and PUP network goes up in fiscal 'twenty two? That's my first question. Thank you. Bharat, thank you. Sure. Thank you. Yes. So as far as PG, yes, you're right in saying that CCE and pickup contribution per lab has moved up. And this has been a conscious way we have been operating for quite some time now is to bring in leverage into our lab operations as well as servicing the market. As we look forward and this we have announced it even in the lockdown period of last year, our lab expansion program continued without any challenge and so also our collection center expansion plan. We are leveraging technology on the collection center network, so there is a lot of stuff that happened on technology enablement And that is something that really helped us to have a far more accelerated connection center network opening program. Plan, I think our pipeline is robust. And like mentioned, apart from the reference lab, we'll also be putting up a network of satellite labs. In fact, some of them have gone operationalized in South and West, and we continue to build upon this. So I don't think you will see us withering on Global Lab expansion plan, including Safetite Labs and also Connection Center and Pickup Phone Network will continue. And the one thing which I want to state is while Grubhuban bed also is a key focus area. There are still markets in North and East and Restock North, which we can still expand to. We can go deeper into the population or we can as cities expand, we can continue to expand into the city itself. So those efforts of identifying micro clusters and establishing presence continue to unabated. Got it. So could I say 15 laps a year, 500 PSCs a year is there, like just in terms of addition going forward, like 20% on PSCs, 5% on lab network, Y o y? PSC network, I wouldn't like to commit a number to at this stage, 500 or 450 automotive. Last week, it is a good number. But yes, our efforts will continue to remain at a very robust level because the other point of opening collection centers is we also need to baby care them. There is no point opening collection centers and then shutting them off for a year or so. So there is lot of growth opportunity establishing when it takes a year, year and a half to get them to shape. There are investors who have put in money to open these collection centers in the moment to them also, which will be the full shot to succeed. So it's important to find out where are the gaps, what are the full servicing suite which we need to put in. It is just not opening collection centers. There's a lot of marketing effort which go into it. There's logistics. There is Doctor. Connect. So the whole suite of market activation which needs to be put in place. So effort will be to stabilize all of this and then be the next level, But effort continue and we waited is what I would like to assure you all. Perfect. Got it. Second question, well, more to do with Q1 April, May 2021, which we're going through right now. Earlier, my thought was we were picky in terms of where we want to do the RT PCR and COVID business based on state pricing because they were deviating in higher in some states, lower in some states. But right now my sense is it's pretty much regulated across. And as Doctor. Ohm said that even at current prices given non COVID support, we are profitable on COVID testing at current prices. So would that mean 1st quarter run rates actually are very, very large if I compare it quarter on quarter sequentially in terms of RT PCR testing? Like for example, if we did 450,000 tests this quarter, would it mean like we'll be doing 8, 9 lags per quarter because the situation is actually worse off this time around versus the first wave? No, no, no. I don't think we won't take any risk on this number because this is so volatile, so dynamic, the situation is very vague. I don't think I would burn that area of putting the fill in for the quarter. And we are trying to demand as it comes. Of course, we know that second wave has been very strong and peak has been very high. But accordingly, it is coming down as well in the last few days that is what we have seen. So I think it's we still have 1.5 months to go. I definitely won't want it for the 3rd for the quarter right now. Thank you. Sorry to interrupt you, Rahul. I request you to come back in the question queue. I request to all the participants, please restrict to one question per participant. If time permits, please come back in the question queue for a follow-up question. The next question is from the line of Sameet from Morgan Stanley. Please go ahead. Thank you and good evening everyone. I hope if I remember correctly, our earlier focus in the expansion of the distribution was more towards TSCs. But I'm a bit surprised to see that the pickup points have also gone up significantly, I would say, actually much faster than TSC, about 20%. So just any thought on that, what's really driving this? Yes. I think what has happened is that we have done 2 acquisitions through PACCARLabs minifiers. So they have a large pickup bond business and even a small pickup bond to get started. So that has also has contributed to this. And second area also has been that, unfortunately, last 1 year has been extremely stressful for many health care institutions. Due to lockdown, they have not been able to manage their load. So they actually always found some bit of outpacing to be done through our lab. We were also able to service them better. So that also has contributed to this large growth. So some picker points want to ask to give a sample of the premiums of entertaining them. And pick a point number per se is not a very sticky number, so it tends to fluctuate much more. From a physics perspective, I think somebody asked this question in terms of labs and PSCs. We definitely want to improve the ratio between lab to PSC. And when I said PSC, this means our own as we have franchising. And this is one unit of growth that we really want in Loncher because we believe that as the business moves towards very personalized service home collection, the entire center of action is going to be patient service center. And this patient service center is going to be franchised on. And we want to embrace this entire network through technology with us on a real time basis. I think fundamentally, that's the direction we want to go. The thicker point, I would say, we are getting at it because of the market process and the demand coming in. Bharat, if you want to add something to it, please do that. No, I think you sound like Thanks. Just one more, if I may. And that is, is there any role that the company is thinking of playing in the vaccination drive and your updated thoughts on the volumes that you are getting or you may get from e pharmacies? It's a good question, Sameer. Though I know that in the beginning, a lot of health care institutions or allied institutions like tennis shops or even pathology labs, it is easily seen that if we really want to widen the network of vaccination, some of us can also participate in this direction. I really don't know. We are actually definitely fast to do so. We will rise to that occasion. But there is a bit of a personal market at our end because there is a requirement of certain spaces to be done. You need to have a waiting area, then you have to have a vaccination area, then you need to have an observation area, and the person has to wait for half an hour there. And there is also a requirement for any adverse event that happens post vaccination. So the way I see it is that it actually if you are to really scale up in a big way, then it is like building a new infra. And our phlebotomist, I'm not very sure that they are from a regulatory perspective, off price to vaccinate the only blood they do collection. I think it will be more driven by the parties actually come back to us saying that we want to now widen the vaccination network. So we are given by the guidelines that we get from authority. But if asked to do so, we will not hold back. But from an operation perspective, I'm not very sure whether we are just there to do it naturally because we don't have too much of space. Connection centers are too small, 100, 150 square foot areas. I'm not very sure how we can manage all these 4 rooms that's required. Edwards, even we don't know. And even if we do a tie up with some hospitals, we need to have some kind of scale to even have some kind of unblended there. So I think operationally, it looks to me a bit challenging as of now, I will see. But if authorities want us to get involved, so we will definitely come forward and help to continue as a priority if required. Got it. For e pharmacies? That's why I can touch you on the first question. Sorry, what was the question on e pharmacy? Are you seeing enough volumes? Are they scaling up on a diagnostic side? And can they be a funnel into your labs? So for key pharmacies like 1mg and Pharmacy kind of guys, we can lead that one, you think? Yes. They have all started diagnostic services as well. So then there'll be Yes. I know I have seen with many of these guys on their own who have started diagnostics. Bharat, do you want to take the question? Yes. Completely, I can presume. So we have tie up with all the large e pharmacy chains like 1 MG and so on. So they sell our test packages and they give us the lease for us to service or they give us examples for us to give the reports back to them. So that is actually in place. Some of them are putting up their own labs. I think there are a couple of them who have labs in Bellamy, for example, Hellyants and 1MG. Hellyants is not a strict e commerce player, but yes, 1MG is. So they are putting up their own labs. But yes, and that is something which you truly watch and but we are also building our own e commerce channel for us to be able to offer services digitally. So some of these guys actually got advantage during COVID spikes because there's always a spillover of demand from larger set up because the demand during this period went up so sharply and it has come down as well. It's just staying there. It happened just for 2 weeks. The demand was so high. Most of us actually couldn't cater to it, whether it's benign or IL-six. And I was just doing a math. Actually, it just went up 15 times normal rate. So there's no lab or nobody actually can meet the demand. That's what happened on hospital side as well. But now it has come down as well, so there's excess capacity benefit. I think some of these labs got benefit of this lower demand. And since most of this demand was home collection and customers were using tech solutions, so they did benefit out of this. So having said that, I think some of these guys are not going to be taken lightly. So they are definitely a competitor emerging in this space. Thank you very much. Sameer, I'll request you to come back in the question queue for a follow-up question. The next question is from the line of Sujit Pal from Raghurathir Jagadish. Please go ahead. Hi. Given the kind of situation has been involved, kind of sectoral strategic shift could also happen. For the guys like Doctor. Lal, whose presence was not that great in South and West, do you think that the current pandemic for last 1 year, which could be going for next 1 year too, the presence of digital also help you to expand faster over here? Is that the norm then forward? Yes. If I were to sum up, I think there are more tailwinds for us to enter new markets than before quarter. We can model model. We can model model. And the tailwinds are coming more because tech solutions, agents are coming because of people wanting to actually get the test done from the PVID Labs. They've heard about it. And we always require good eye on equity amongst medical fraternity. We were not that big B2C here, but definitely we were a preferred player amongst medical fraternity. So your answer is definitely it is an advantage post COVID for playing like us to go into new markets like FalconX. So at least for us, how quickly is your So I know there was some person trying to ask for FY 2022 quarter 1 as well, and I'm really hesitant to comment on that because we still don't know what that contribution could be going forward. But historically, yes, wave, if I'm correct, quarter 4 is 11.2%. In RTC? And so I'm talking about total business, total COVID. COVID Align is very small last year. So and for the COVID-twenty 2, it's about 18%. Where are you there? I think where it has dropped off. So I think it's in that range, about 11% for the quarter and 18% for the year. Thank you. Sorry to interrupt you. I request that you to come back in the question queue for a follow-up question. The next question is from the line of Kunaal Vanderya from Middle East Financial Service. Please go ahead. Good evening. My first question is, I just want to understand a bit more on the spectrum of these COVID allied tests, especially the 3rd item. Because there are some this vaccination, one vaccine is associated with the last loss in there, so do you see longer tail to be dimer until the vaccination is done? It's a little technical question. I don't know if Doklal can answer this if he is on the call. Otherwise, I'll take a crack on this. Doklal is there? Hello? Yes, I can hear you. Can you answer this question slightly? I think the question which I thought was related to vaccination in Z Diamond. So can you repeat the question? Okay. So my question is, I'm just trying to understand the stickiness of allied test, COVID allied test with D dimer. So with one vaccine being associated with blood loss and all, so I'm just wondering whether you will see a very long tail with D dimer term? See, 1st of all, this is a myth that one vaccine will try to drug clot, etcetera. It is well within it is something like 6 cases in a 1,000,000 have been spotted or something like that. That can happen with anybody. And what we have to remember is, this is not vaccine related, but it is related to COVID. COVID itself goes and affects the blood vessels of the lung, and that is what causes these kind of problems. There is no to me, no vaccination related, you know, quagulopathy as we call it in India has been reported. But yes, they are on record, but they are insignificant. So the problem what you're asking is you could be COVID affected, not for the vaccine effect on a large scale? Sure. Okay. So if I were to understand, as COVID, the paper is done in India, some of these tests were also good on, policy and productivity. Yes, yes, yes. That's very clear. Yes. To me, I think it's a fairly clear thing. It is these RT PCR, IL-six, D dimers, they are all linked to the trajectory of COVID. If the COVID goes down, these sessions will go down. And that's why I'm really hesitant to actually fully remember because I still don't know what's going to happen in the future. That's absolutely great. It's like a sign curve. When the epidemic is on and the peak is on, now the peak second peak is now, the 7 will be coming down. So you will have a net testing of all these tests. And these are all follow-up tests in any case. The post inflammatory reaction to the virus. So they automatically come down. And the number of deaths in India unfortunately have not come down, but we will see them coming down, and we will see the effects everywhere. Perfect. That answers my question. Thank you. The next question is from the line of Abhut from Patekra Investment Private Limited. Over the last year, we've seen hospital walk in among patients have dropped. So in terms of the hospital beds coming down in favor of home collection, is there any texture you could mention what you're seeing from a data perspective? And as an extension of this, do we expect that once hospital walk ins go back to normal level, there will be a reversal of some kind from standalone labs to maybe hospital based labs? I think it's the 2 things that you have mentioned. Hospital walk ins have come down, that's correct. A lot of OPDs have gone online, which is also correct, right? Walking coming down does not mean that consults are not happening. Consults are not happening online. If I I have talked to a few colleagues of mine who run hospital teams, they did mention to me, in fact most of us used to think that this is permanent shift and people will not come back. But when the COVID went down, a lot of people actually started coming back as well. Because there is a patient interface with the doctor face to face also has a full derivative aspect, right. There is a tendency for patients to come back. So right now, since we are in the middle of this crisis in May 2, a lot of it has actually gone back online. I think your second question was, will hospital labs a big role. I think phone hospital labs have already started home collections, but their reach is only within 1 to 2 kilometer area. So it's not something they try to build a retail pathology network. They only service their own current patient base. So to that extent, they are doing some kind of home connections, hospital access. Yes. And if I may add, Om, to what you have said, when the COVID epidemic or pandemic is fully on, the people who suffer who are actually old patients of what we call these non communicable diseases, what we call comorbidities, people like diabetics with problems, hypertension problems, cardiac patient problems, cancer patient problems, renal transplant patient problems and other kind of problems, strokes, etcetera. Those people, they stop crying or they nobody even actually entertain them that time because they are full of COVID patients. So it works both ways. The moment COVID decreases, these patients start coming back because they are on treatment. Imagine there is a patient of cancer who is on chemotherapy, therefore, that chemotherapy has been stopped. So he has to go back. So it is it was the proposal. That's all. Understand. Thank you very much. Yes. The next question is from the line of Himanshu, an individual investor. Please go ahead. Himanshu Manushavi may request you to unmute your line from your side and go ahead with your question. Yes. Hi, sir. Good evening. Congratulations on great test of numbers. I'm super satisfied on how my parents were scheduled by Doctor. Nath during this pandemic. However, I would want to say one thing. You should focus catering cash to collection centers rather than labs. At the end, we are serviced by more than telephoto mesh and support all the time you were denied. So, Himanshu, you said we should service our patients through collection sensors? Yes, because I will share the one incident. At one point of time, I called for a company center for my mom's RT PCR test, but I got waiting here for more than 3, 4 hours. But once I came to know that there's a collection center around my home, so I called the collection center and the service was, No, no. Thank you for the input. I think that's our stated sort of way forward because the purpose of franchisee is to scale because otherwise if we start doing it on our own, we can't scale the business. That's the reason why we have a franchisee. And then we want to actually embrace the entire franchisee network through technology so that we are also able to see the entire customer experience at franchisee level. While you have had a great experience at franchisee, sometimes we also have cases other than that as well. But we want to keep the visibility of the entire experience customers going through our franchisee. But you're absolutely right, to stay in this business, we have to go through consultancy. That's where we'll be able to go every look and go over the country. Thank you very much. Ladies and gentlemen, due to time constraint, that will be the last question for today. I will now hand the conference over to the management for closing comments. Dave, do you want to give the floor? Yes. Thank you. Thank you everyone for being with us on this call today and look forward to connect you again on our next call. Until then, I wish all of you and your family to be safe and humble. I would now like to turn the call. Thank you. Thank you very much. On behalf of Doctor. Lal Path Labs, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.