Redcliffe Labs, an online diagnostic platform backed by Leapfrog Investments, reported the milestone for the fiscal year ending March 2024, at ₹348.38 crore. This marks a growth of 11% compared to ₹313.86 crore in FY23. As part of this revenue growth, the company has been able to reduce its losses by 28%, showing its strategic focus on cost management and operational efficiency.
PC: The Economic Times
The consolidated financial statements of the company, as filed with the Registrar of Companies (RoC), show that nearly 98% of its operational revenue stood at ₹341.02 crore, earned through the company’s network of laboratories providing pathological testing in different branches of biochemistry and radiology. Such strong performance in diagnostics has positioned Redcliffe as a major player in the healthcare sector, especially in the expanding market for online diagnostic testing.
Besides the main income from diagnostic services, Redcliffe reported product sales of ₹2.16 crore and other operating income of ₹5.20 crore. The company’s total income stood at more than ₹353 crore, supported by non-operating income of ₹5.3 crore, which included interest income and reversals of excess provisions.
A significant factor behind the decline in losses was a significant reduction in advertising and material costs. Redcliffe was able to decrease its advertisement expense by 45% which brought down the same to ₹65.38 crore. The material cost also dipped by 15% amounting to ₹106.31 crore for FY24. However, it had laboratory test charges that have risen by 62.2%, and depreciation has increased threefold during the period. Total expenses of the company were down by 14% to ₹556.16 crore from ₹647.30 crore in the last fiscal.
Redcliffe Labs’ overall financial health has been better. It had a loss of ₹250 crore in FY24, which is compared with ₹345 crore in FY23. The ROCE and EBITDA margin for the company are -544.68% and -57.55%, respectively. On a unit basis, Redcliffe spent ₹1.6 to generate every rupee of operating revenue during the last fiscal year.
As of FY24, Redcliffe Labs had cash and bank balances amounting to ₹15.87 crore, while current assets amounted to ₹89.64 crore. This means a stable liquidity position that can support ongoing operations and potential future expansions.
Regarding funding, Redcliffe Labs has managed to raise $113 million in total to date. The company has recently closed a Series C funding round that raised $42 million. The company has also done some strategic acquisitions. For instance, it recently acquired Celara Diagnostics for around $7 million in Bengaluru, which is likely to increase its diagnostic strength and reach in the market.
The key competitor to Redcliffe Labs in this competitive landscape of online diagnostics is PharmEasy-owned Thyrocare, Healthians, and Tata 1mg. Interestingly, Tata 1mg had reported revenues to ₹1,968 crore in FY24, and Healthians reported to have achieved EBITDA profitability with revenues of ₹243 crore.
As Redcliffe Labs moves into the changing healthcare market, its focus on revenue growth, cost efficiency, and strategic acquisitions will be a huge success in the future. Improvement in financial performance while extending service offerings will be crucial in maintaining its competitive edge in diagnostics. With the healthcare industry poised for ongoing growth, Redcliffe Labs is well positioned to capitalize on emerging opportunities in the market.
