What Caused Vijaya Diagnostic Centre’s Profit Decline in Q4?
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Synopsis
Vijaya Diagnostic Centre Limited experienced a decline in net profit for Q4 despite an increase in revenue. This article explores the financial results, including rising expenses and the company's expansive diagnostic network. Discover the insights around their performance and the implications for investors.
Key Takeaways
- Net profit fell by 1.41% in Q4.
- Expenses increased by 13.8% during the same period.
- Revenue grew by 11.6% in Q4.
- Company operates 125 diagnostic centres.
- Founded by Dr. S. Surendranath Reddy in 1981.
New Delhi, May 12 (NationPress) Vijaya Diagnostic Centre Limited announced a drop of nearly 1.41 percent in net profit for Q4 of the previous financial year, reaching Rs 34.8 crore, down from Rs 35.3 crore in the prior quarter (Q3 FY25).
The company reported a significant rise in total expenses for Q4, increasing by approximately 13.8 percent to Rs 130.4 crore, compared to Rs 114.6 crore in the same quarter last year, as per its filing with the stock exchange.
During Q4, the pathology lab's revenue rose by 11.6 percent to Rs 173.2 crore, up from Rs 155.2 crore in the corresponding period of FY24.
For the entire fiscal year, net profit saw a growth of 20.41 percent, totaling Rs 143.08 crore for the year ending March 2025, in contrast to Rs 118.83 crore from the previous year.
The company's shares closed nearly unchanged, with a decline of Rs 3.1 or 0.31 percent to Rs 990 on the National Stock Exchange (NSE) on Monday.
Over the past five days, Vijaya Diagnostic's share price has decreased by 2.04 percent, equivalent to Rs 20.60.
In the last month, the stock has experienced a drop of 1.03 percent, translating to Rs 10.30. Over a six-month period, the share price has decreased by 7.46 percent, or Rs 79.75. Year-to-date, the stock is down by 6.85 percent, reflecting a loss of Rs 72.75 on the NSE.
Vijaya Diagnostic boasts 125 advanced diagnostic centres spread across 20 cities, supported by an in-house team of over 2,200 professionals, including pathologists, radiologists, and microbiologists.
Founded in 1981 in Hyderabad, the Vijaya Diagnostic Centre was established by Dr. S. Surendranath Reddy.
In a related note, US President Donald Trump recently announced an executive order aimed at reducing the prices of prescription drugs in the US by 30 to 80 percent, addressing the long-standing issue of high medication costs faced by American consumers compared to other nations.
Point of View
Our commitment is to deliver impartial and comprehensive news. Vijaya Diagnostic Centre's recent financial results reveal both challenges and opportunities. The rise in revenue amidst increasing expenses underscores the dynamic nature of the healthcare sector, highlighting the need for strategic management as the company looks to navigate its growth trajectory.
NationPress
13/06/2025
Frequently Asked Questions
What was the net profit of Vijaya Diagnostic Centre in Q4?
The net profit for Q4 was Rs 34.8 crore, reflecting a decrease of 1.41 percent compared to the previous quarter.
How much did the company's expenses increase in Q4?
The total expenses in Q4 rose by approximately 13.8 percent, amounting to Rs 130.4 crore.
What was the revenue for Vijaya Diagnostic Centre in Q4?
The revenue for Q4 increased by 11.6 percent, reaching Rs 173.2 crore.
How many diagnostic centres does Vijaya Diagnostic operate?
Vijaya Diagnostic operates 125 advanced diagnostic centres across 20 cities.
When was Vijaya Diagnostic Centre founded?
Vijaya Diagnostic Centre was established in 1981 in Hyderabad.
