The company will be opening collection centres across Maharashtra, Himachal Pradesh, Punjab, West Bengal and Rajasthan, where it is already offering pathology and radiology services to the respective state governments under public private partnership (PPP) model.
Krsnaa is banking on the B2C (business-to-customer) model, besides bidding for more PPP contracts to double revenue growth and triple profits by end of FY24. Krsnaa has revenues of Rs 470 crore in FY22 with net profit of Rs 68 crore. Yash Mutha, executive director of Krsnaa Diagnostics in an interview to ET, said the company will be leveraging the network of labs that were operational under public private partnership (PPP) mode for the B2C expansion.
“We have done 20 odd Krsnaa Business Associate (KBAs) on pilot basis to test the waters. We had success. Now the uptick will be like a hockey stick, as it’s just a copy paste, we don’t have to do any investment, as labs are already there,” Mutha said.
Mutha added that the prices of the tests will be 20% cheaper than the market prices, and we will be offering an attractive commission to KBA.
Despite aggressive pricing, Mutha said the B2C business will still manage 40% EBITDA margins.
Mutha said he expects the B2C segment to contribute by about 50% going forward.
Krsnaa Diagnostics services much of its revenue through public private partnership (PPP) where it participates in tenders floated by state governments and municipal corporations to set up and operate onsite, in-hospital diagnostic centres at existing healthcare facilities. The medical facility typically provides rent-free real estate and access to its utilities and other infrastructure.
Krsnaa offers its services at very competitive rates; radiology tests priced at 45%-60% lower and pathology tests at 40%-80% lower than market rates.
Krsnaa is a leading PPP diagnostic player with 120 radiology centres, 1,489 tele reporting centers, 72 processing labs and 677 pathology collection centres. Most of Krsnaa labs and radiology centres are in tier-2 and tier-3 locations.