Krsnaa Diagnostics Ltd (NSE: KRSNAA) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Yash Mutha — Managing Director
Pallavi Jain — Executive Director
Mitesh Dave — Group Chief Executive Officer
Pawan Daga — Chief Financial Officer
Dhwanil Desai — Analyst
Analysts:
Raghav Vedanarayanan — Analyst
Bala Murali Krishna — Analyst
Raman Kevi — Analyst
Kashish Thakur — Analyst
Surya Narayan Patra — Analyst
Nancy Yadav — Analyst
Meghna Agarwal — Analyst
Ranvir Singh — Analyst
Deepali — Analyst
Neha Kharodia — Analyst
Aditya C — Analyst
Pranay Khandelwal — Analyst
Shivam Dave — Analyst
Amruta Deherkar Sane — Analyst
Bharat — Analyst
Ruchika Kadge — Analyst
Presentation:
Operator
, a very warm welcome to the Q3 FY ’25 Results Conference Call of Krishna Diagnostics Limited. Before we begin, I would like to remind all participants that today’s call may contain forward-looking statements that are forward-looking statements, including but without limitation, statements relating to implementation of strategic initiatives and other statements relating to Krishna Diagnostics, future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Raghav from GM Financial. Thank you, and over to you, sir.
Raghav Vedanarayanan — Analyst
Thank you. Thank you, Sagar. Good afternoon, everyone, and welcome to the Q3 FY ’25 Results Conference Call of Krishna Diagnostics Limited. Joining us today on the call are Mr Rajendra Mutha, Chairman and Whole-Time Director; Mr Yash Mitha, Joint Managing Director; Ms Pallavi Jain, Executive Director; Mr Mitesh Dave, Group CEO; Mr Pavan Daga, Chief Financial Officer; and Mr Vivek Jain, Head of Investor Relations. I would now like to hand over the call to Mr Yash Mutha for his opening remarks. Thank you, and over to you, sir.
Yash Mutha — Managing Director
Thank you. Thank you, Raghav. Good afternoon, everyone. I am pleased to welcome you all to Krishna Diagnostic Limited’s Q3 FY ’25 earnings conference call. Before I take you through our performance, I’d like to extend my gratitude to the Board and our Chairman, Mr Rajendra Mutha, for their trust in recommending me for the post of the Managing Director. Moving on to business, the union budget of has reinforced healthcare as a national priority with a 13% rise in allocation for the Ministry of Health and significant investments in PPP models, cancer care and digital health infrastructure. The budget 2025 ’26 marks a transformative leap for India’s healthcare sector introducing key reforms aimed at enhancing accessibility, affordability and equity. In this budget, healthcare has received enhanced funding. The Ministry of Health and family welfare has been allocated INR90,958 crores For the fiscal year 2024-’25, marking a 12.96 increase from the previous year’s revised estimate of INR80,517 crores. The National health missions budget has been increased from INR31,550 crores in to INR36,000 crores in ’24 ’25, aiming to bolster the healthcare services across the nation. The Padan Man 3 or PMJY has risen from INR6,800 crores to INR7,300 crores, enhancing financial protection for health services to the economically vulnerable populations. There has been also movement in the cancer day care centers where the government plans to set-up daycare cancer centers in all the district hospitals over the next three years with 200 centers to be established in the fiscal year 2025-’26. This initiative is expected to add over 4,500 cancer daycare beds across the district hospitals to bring cancer treatment closer to the patients’ homes and reduce the burden on tertiary care centers. Also, the budget extends health insurance under the to-1 crore gig workers providing financial protection against major health expenses. With a strong emphasis on public-private partnerships and the ease of doing business, the budget highlights the pivotal role of private sector collaboration in shaping healthcare as a cornerstore of developed India. At Krishna Diagnostics, we are uniquely positioned to capitalize on these reforms, given our strength in the nationwide reach where we have presence in over 18-plus states with more than 3,000 plus centers, making us one of the largest diagnostic service providers in India. We are a leader in the PPP-driven diagnostic services ensuring affordable high-quality diagnostics across urban, semi-urban and rural India. We offer a full suit of radiology, pathology and tele radiology services across our network. Our hub-and-spoke model allows us to maintain operational efficiency while expanding our footprint and we also invest in AI-enabled diagnostics and digital health solutions which are improving service efficiency and diagnostics accuracy. These initiatives reflect a comprehensive approach to improving healthcare accessibility, affordability and quality across India. However, in the first-nine months of FY 2025, Krishna has achieved an impressive 17% year-on-year revenue growth, reaching INR5,311 million. Increased awareness of our high-quality service offerings combined with competitive pricing has significantly boosted patient volumes and test counts. On the financial front, the EBITDA surged 39% year-on-year to INR1,416 million with margins improving to 27%. I’m delighted to share that your company has achieved a remarkable profit of INR569 million in the nine months ending FY ’24, equaling the full-year profit of the previous year, demonstrating our continued focus on operational efficiency through strategic initiatives. We are confident in maintaining this positive trajectory in the coming quarters. However, in this quarter, our revenue was impacted by a combination of seasonal variations and temporary operation factors. The earlier conclusion of the Mumbai BMC project, along with a delayed ramp-up of for Maharashtra CT and Madhya Pradesh installations due to site handover delays led to this temporary dip in the revenue. Additionally, there were certain operational challenges in select states, including Karnataka, Assam, which have also contributed to short-term volume moderations. These factors have affected the quarter’s performance. However, with our ongoing site activations underway and operational efficiencies being reinforced, we remain positive in continuing our momentum in the upcoming quarters. I would like to now hand over the call to Ms Pallavi to walk you through the developments in our TPP domain. Over to you, Palavi.
Pallavi Jain — Executive Director
Thank you, Mr Yash. Good afternoon, everyone. At, we firmly believe that our employees are the backbone of our success and we are committed to fostering a work environment that prioritize their well-being, growth and professional development. As part of this commitment, we have launched several initiatives aimed at enhancing employee engagement, upskilling and overall job satisfaction. We have introduced comprehensive training programs designed to equip our workforce with the latest advancements in diagnostic technology, ensuring they remain at the forefront of the industry standards.
I am delighted to announce that Diagnostics has been honored with the leading Human Resource Transformation Award by the esteemed India HR Summit and award. Let me just brief you about the recent developments in. We are proud to announce that 12 of our laboratories have been accredited by NAVL this quarter, bringing our total to 49 laboratories, one of the highest NABL chains in the industry. In the state of Jaharkand, we have successfully executed an agreement with the authorities. The implementation of two centers is expected to be completed by the first-quarter of FY ’26. In Maharashtra, we have successfully commissioned 40 CT scan machines. The remaining 50 CT scans and 17 MRI machines will be operational soon with the revenue projections expected to materialize from the first-quarter of fiscal year 2026. Over the last three months, we have expanded to further 284 collection centers nationwide. Now to take you ahead on our retail expansion plans and strategy, I would like to hand over the call to Mr Mitesh.
Thank you, everyone. Over to you, Mr Mitesh.
Mitesh Dave — Group Chief Executive Officer
Thanks, Mr Pallavi. A very good afternoon to everyone. At Diagnostics, we are entering a very exciting and transformational phase with a strong emphasis on expanding our retail footprints and positioning ourselves as the household name in the diagnostic healthcare. While our PPP business continues to be the cornerstone of our success, our retail expansion is unlocking new avenues for the sustained growth. The momentum in our retail segment is truly exciting. We have successfully launched retail operations in four of our states, Maharashtra, Punjab, Assam and under the brand RPL by leveraging our existing PPP infrastructure.
The response has been encouraging with the strong demand towards wellness packages and steadily expanding network that is driving brand recognition. With the best-in-class quality, affordable pricing and 24×7 accessibility, RPL is set to redefine convenience and the trust in diagnostics. Our asset-light model ensures rapid scalability, allowing us to expand aggressively without heavy capital investments.
Retail. In our vision, which is very clear to becoming a go-to-brand for the diagnostic in India, the diagnostic industry is witnessing a paradigm shift with consumer prioritizing preventive healthcare and digital-first solutions, where we are well-positioned to capitalize this trend by strengthening our B2C presence, expanding our retail footprints in metro cities and high-growth tiers, Tier-1 and 2, along with Tier-3 markets where there is a huge vacuum as well. Technology and AI-enabled diagnostics, enhancing service efficiency and AI-powered digital pathology, automation and seamless online bookings.
Wellness and preventive healthcare offerings, customized health screenings, packages to cater to rising demands for the early disease detection and proactive healthcare management. Certain strategic collaborations and partnerships helping to expand our tie-ups with the hospitals, corporate wellness programs and the many digital health — health platforms. With our expanding retail network, digital transformation and unwavering commitment to quality, Krishna is poised to become a leaders in India’s high-growth diagnostic retail market.
At, we are focused on expanding our home collection services to provide convenient, high-quality diagnostic at patients doorstep. We are strengthening our network of trained across urban and rural areas to ensure wider accessibility. Our digital platforms, including the websites and mobile app, enable seamless appointment bookings and real-time tracking. By optimizing logistics and lab processing, we ensures faster sample collections and quicker report deliveries. We are also collaborating with the corporate insurance providers to integrate home collection into the wellness programs. Additionally, we are efficient education and awareness campaigns to To promote proactive health-care. With a strong commitment to quality, hygiene and reliability, our home collection services bring accurate and affordable diagnostics directly to the people’s homes, ensuring better health outcomes for all. Moreover, Krishna Diagnostics is proud to be trusted partner for more than 50,000 plus doctors across 18 states working tirelessly to ensure world-class diagnostic services reach even the most remotive and the underserved region in India. Through our cutting-edge technology and state-of-art laboratory and the commitment to excellence, we empower healthcare professionals with the accurate, timely and reliable diagnostics insights. By bridging the between the advanced medical diagnostics and accessibility, we contribute to improving patients outcome and strengthening the nation’s healthcare ecosystem. We are energized by the potential ahead and look-forward to delivering strong sustainable growth in this space. At Krishna, under RPL, our aim is to be doctor’s preferred partner for anytime, anywhere affordable and assured diagnostic service provider. With that, we’ll take you through our financials and the operational highlights. And I’m handing over further to Mr Pawan to take a deeper insight into the quarter three performance. Over to Mr Pawan. Thank you.
Pawan Daga — Chief Financial Officer
Thank you, Mr Mitesh. Good afternoon, everyone. Let me just brief you about the Q3 and nine months financial performance. Revenue for Q3 FY ’25 stood at INR1,745 million, a 10% year-on-year increase, driven by high volumes in both radiology and pathology segments. Other income for the quarter primarily comprises interest income from fixed deposits, along with gain from strategic capital reallocations and structured financial initiatives. EBITDA for Q3 FY ’25 stood at INR466 million with a margin of 27%, reflecting a strong operational efficiency.
Net profit stood at INR194 million, registering a 50% growth year-on-year. In nine months, we have achieved revenue for first-nine months stood at INR5,311 million, a 17% year-on-year increase. EBITDA stood at INR1,416 million, registering a 39% year-on-year increase. Net profit stood at INR569 million, registering a 49% year-on-year growth. Our diluted EPS stood at INR17.26, registering a 47% growth year-on-year.
Our company continued to maintain a net debt-free status, a significant achievement. Our receivable for nine months FY ’25 are on a higher side, primarily due to a delay payment from Himachal Pradesh and Karnataka. Currently, our receivable — receivable days average around 60 to 65 days except for a project in Karnataka where they extend to 120 days. As a result, management — management has decided to moderate operations in these regions. However, we are confident that by the year end, our receivable days in HP Karnataka will reduce to 90 days. And by next year, our overall receivables for the company will normalize to 65 to 70 days.
With this, we conclude our opening remarks and we would now like to open the floor for question-and-answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star N2 two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Bala Murali Krishna from Oman Investment Advisors. Please go-ahead.
Bala Murali Krishna
Hi, good morning, sir. So regarding the execution, so this quarter, I think you had told that there is reason are for not executing any cities can at Mahara. So what about the Q4 also how we can see the Q4 panning out in the execution side in pathology and radiology?
Yash Mutha
Yeah. So in terms of implementation of our PPP projects where there were certain delays due to site handovers, which is typical of our PPP, but on the PPP business. We have now identified certain areas and the team is working on it. So we expect the rollouts to happen in Q4 and therefore the business coming back-in Q4.
Pawan Daga
So Pawan beside, just adding to the Yash points, six centers are already targeted to be operational in Q4 and certain sites and the work completion will as the progress, we accordingly give updates on more centers to be operationalized by end of March or maybe the first month of the next financial year.
Bala Murali Krishna
Okay, that’s fair. And from the B2C segment, so what is the reduction was there in this quarter on the top-line side and over the last question from the B2C segment.
Yash Mutha
Sorry, Mr, we can’t hear you very clearly, if you can repeat the question please.
Bala Murali Krishna
Yeah, in the retail segment. So what is the contribution in this current quarter and what is the expectation from the next year FY ’26 from the B2C retail segment?
Mitesh Dave
Yeah. So the B2C, if you — you see, we have started the B2C what Foray recently. So the contribution is not very significant. But in the four states that we’ve seen, the results are very encouraging and we expect going-forward as the business scales up, the contribution will be significant towards the next financial year.
Bala Murali Krishna
Okay. And could you just throw some light on the pipeline? I think we are discussing about some two, 3/4, but we don’t know whether that was already awarded or we have not reviewed that tender or it is still — we are waiting for the results or any pipeline tenders, any states could some light on that.
Yash Mutha
Yeah. So for example, we had participated in tender, which we won in two centers. Some of the tenders are in the pipeline where work is going on as and when they’ll happen, we’ll announce it.
Bala Murali Krishna
Yeah okay, that’s all from my side. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please restrict yourself to two-question each. If you have any follow-up questions, you may rejoin the queue. The next question comes from Raman Kevi from Sequent Investments. Please go-ahead.
Raman Kevi
Hi, sir. Congratulations on a good set of numbers. Sir, I just wanted to understand what are the revenue from radiology and pathology and what are the margins?
Pawan Daga
Yeah. So our — for the Q3 radiology contribution was 49% and pathology contribution was 51%. So this is the first-quarter where we have surpassed or the ratio which we previously mentioned, we want to be a 50-50 modality where we want to achieve the revenue 50-50, so which we have already achieved it. Okay. On the margins side, radiology always get a higher-margin or EBITDA at a center level somewhere around close to 40% and pathologies are close to 25% to 30% margin at a center level or project-level?
Raman Kevi
Okay. And sir, sir, from the PPT, you said in the PPT mentioned that existing centers had 36% margin and new centers had 17% margin. So how long new center will it take for a new center to contribute that 36% margin?
Yash Mutha
So typically, from a PPV project perspective, depending on whether it is a radiology or pathology, the maturity level stages varies, but normally it takes for pathology around one to two years to become mature and sorry, pathology would be around one year and could be about a year and a half where they can come to the mature level of revenues.
Raman Kevi
One year and radiology is 1.5.
Yash Mutha
So radiology, for example, it ranges between one to three years in achieving the mature level of revenues and pathology comes in around one year.
Raman Kevi
Okay. Okay, sir. Sir, one last question. I just want to understand your retail expansion, like the business model Of RBL, what are we doing there? How are we planning to expand our radiology and pathology business through this retail business.
Mitesh Dave
Okay. So having said that the overall retail, we would like to position ourselves as one of the most affordable, accurate and the 24×7 service provider as a holistic service provider or integrated service provider considering radiology and pathology both. Radiology adds a cutting-edge to me positioning in total as in retail space across India. And in that, we will be taking traditional as well as the new edge route both. It’s kind of a hybrid wherein there will be the collection centers followed with the new edge digital and AI platforms for the patient convenience. So it’s going to be a completely different positioning what is there today with any of the existing players?
Raman Kevi
Sir, basically it’s like instead of a pharma retail outlet, you’re opening a radiology and pathology center, right?.
Yash Mutha
So yeah. Basically, if you see, we already have a network of our PPP centers and our labs. And as we mentioned earlier, we are trying to leverage the existing infrastructure to foray into the PPP where we would be utilizing these labs to process the samples that we’ll be collection — collecting through the home collection services as well as trying to get patients to come and avail the imaging services that we have, which are already serving the PPP customers. And like said, since our business is operational 24×7, that makes us a differentiator from the market perspective. And looking at all these different attributes or variables is how we are looking to for into the B2C segment.
Raman Kevi
Okay, okay. Thank you, sir. Sir, also one last question. You mentioned in the previous quarter,
Operator
Sorry to interrupt. May we request you return to the question queue for follow-up questions, please. There are several participants waiting for their turn. Thank you. The next question comes from the line of Dwanil Desai from Turtle Capital. Please go-ahead.
Dhwanil Desai
Hi, good afternoon, everyone. So my first question is, Yash, you mentioned various reasons for kind of slightly lower revenue growth this quarter. But from your earlier answers, the Maharashtra rollout also will probably start contributing only from Q1, plus you know, it was mentioned that you know the states where our receivables are high, we are kind of doing moderation in terms of operations. So at least next quarter, the growth should pick-up from Q1 of next year. Is that how we should look at it?
Yash Mutha
Yeah. So we are expecting Q4 also to demonstrate some growth. As we said, there were certain decisions we had taken because of these states as well as certain operational challenges. But now both from a — if I talk about from the Maharashtra projects, we are gearing up to ensure faster implementation of our centers, like what Pravin also mentioned. So in the Q4, we are also expecting to see some of these benefits to come through and the larger benefit will also come from Q1 of the next financial year.
Pawan Daga
And Pawan last one year, we already deployed 40 cities can center in Maharashtra and other locations. So these centers are also started maturing, the Q3 where the seasonality impact and other festivity and other parameters. So Q4, there’s 40 centers which see a significant spike in the revenue, this also going to contribute in Q4. And the new centers which going to be in Q4 and plus in the Q1 of next year, which slightly in next financial year, but the centers which already deployed in last one year will start contributing or already started contributing revenue, we’ll see a spike in the revenue this quarter.
Dhwanil Desai
Got it. And this receivable issue from a couple of states, I think from HP. It’s been quite some time even before election, it has persisted. So anything to read into that you know where are — where-is this why the receivable is still not getting normalized? Any color on that could be helpful.
Pawan Daga
So we already received a decide. We already received INR30 crores of a collection in this month from January to till the date. Certain receivable already had a discuss with an authority, which already at a final stage to getting release by end-of-the February or maybe the first week of — or mid of the March.
Dhwanil Desai
Okay. Got it. And sorry. Continue. So on the — on the — on the B2C side, can you help us understand the unit economics both for Coco and FOFO and what are the typical revenue levels, breakeven points, you know, since now we have four-state operational with some proof-of-concept centers also operating and how do we see scale-up next year in terms of numbers? That would be helpful.
Mitesh Dave
Yeah, hi, Mitsh, this side. So like as we said, we started our operations starting in the quarter three and we are just into the beginning of the quarter-four. So it’s too early to give out any heads-up on to the unit economics around Coco or. But however, as a company, as a strategy, we have looked upon or we will be branching on mainly onto the asset-light modeling. But what it would be differentiator considering the market, we will be not just competitive, we rather will be pretty affordable as compared to any of our peers.
Dhwanil Desai
Got it. And next year scale-up plans, can you indicate?
Mitesh Dave
Yeah. So next year, we are looking to have at least 500 touch points in the states where we have launched our operations for now. And further to that, there are multiple business models that we will be rolling it out to adding up to not just the network, but even to the revenues.
Dhwanil Desai
Got it. Got it. Thank you. Wish you all the best. Got it. Thank you.
Yash Mutha
Thank you.
Operator
Thank you. Next question comes from the line of Kashish Takur from Elara Capital. Please go-ahead
Kashish Thakur
Thank you for the opportunity. So just wanted to know like what is your outlook for diagnostics sector as a whole for FY ’26 going ahead? Post-COVID, the things have been quite diagnostic — like changed around, right? So just wanted to know that first thing.
Yash Mutha
Yeah. So if you see considering the budget announcements as well, the way has been growing, we are certainly positive about the outlook from the overall diagnostics perspective. Also with the retail and the earlier results that we’ve seen, which are very encouraging. So we do look at a positive outlook in the next financial year as well.
Kashish Thakur
Okay. Understood. Second question will be on like can you just quantify the test performed and the patient footfall for the quarter?
Yash Mutha
Yeah. Yeah. The details be provided you offline, if you can reach-out to our CFO or Viv will reach-out to you.
Kashish Thakur
Understood. And one last bookkeeping question. So during the quarter, we have elevated other income. So any specific reason for the same?
Yash Mutha
No, sir, as we mentioned, there were certain capital reallocations as well as the regulatory interest income. So it’s part of our routine operations, nothing out-of-the.
Kashish Thakur
So like what can be a range what we can expect for FY ’25?
Yash Mutha
Sorry, if you could repeat the question, question please.
Kashish Thakur
What can be a brief range of what we can expect for FY ’26?
Yash Mutha
You know it’s around INR5 crores what we are looking for quarterly.
Kashish Thakur
Understood. Thank you.
Operator
Thank you. The next question comes from the line of Surya Nara and Patra from PhillipCapital. Please go-ahead.
Surya Narayan Patra
Yeah. Thanks for the opportunity, sir. First question is on the budget initiatives or budget provisions what it has been announced. So in the district level, the cancer treating centers. So what does this really mean for us, whether it is indicating about a possible expansion of centers across India or it is the test volume or scan volume that is giving a positive indication.
Yash Mutha
Well, if you see, it’s a recent budget announcement. So the way we understand or we are given to understand, this is an ambitious plan of the government to set-up daycare centers in cancer where they might provide certain chemotherapies or radiotherapies. But what it means for us is this will result into patients requiring certain diagnostic tests, whether it is pathology or imaging test. And given our presence in district hospitals, we expect these patients to come to our centers and therefore, we believe this will certainly be a welcome move for Krishna Diagnostics.
Surya Narayan Patra
So basically, this is a facilitation of our centers at the district level for radiology as well as.
Yash Mutha
It will be one of the avenues For customers to come through and I will Krishna services.
Surya Narayan Patra
Sure, sir. Second point is on the radiology growth that you have indicated means the radiology revenue-share what you have mentioned. So based on that, it looks like radiology has seen a kind of 2% decline Y-o-Y. So why should one — or why should we see a kind of a decline in the radiology revenues?
Yash Mutha
No. So the decline is basically because if you see the pathology projects that we had entered into last year, and some of them which got implemented. So the contribution of pathology revenue has increased. Going forward, like we have Maharashtra, CT scan, MRI tenders, and as they get implemented, again, there will be a higher contribution from the radiology projects as well. So we’re trying to see overall it should come at a healthy mix of 50% to 50%. In some quarters, it might be 51% 49% or 55% 45%, but we are trying to see that both of them have a decent amount of contribution to the overall pie of the revenues.
Surya Narayan Patra
Okay. But whether we have any control over this revenue mix because it is up to the kind of a tender and whether it will come in the radiology or it is in the pathology. So ideally, it seems that we have no control, but why should we target about 50-50 only.
Yash Mutha
No, if you look at it from an overall perspective, like the previous years, Krishna had a lot of radiology business, then there were pathology projects which came in because government also realized there were not enough pathology labs or pathology services and therefore the pathology business came in. So that shift contribution and again from a diversification perspective, it is also good to have a healthy mix of radiology and pathology and as a holistic service offering for us, equally, if you see both have a different capital outlays. So considering these different attributes, we believe it’s good to have a well-diversified mix of things technology and pathology business. Now depending on how these tenders come up, the revenue contribution or the revenue mix might change. But from a direction perspective both have been growing strong over the last many years.
Surya Narayan Patra
Just an extended point on it, sir. So it was earlier indicated that Maharashtra implementation is likely to happen by let’s say this year or in the early part of next year. But so given the kind of no single center addition this year, this quarter. So the 40 or the balance 33, whatever that is there to be implemented in what time frame that can be implemented practically now that you think.
Pawan Daga
So. Yeah. Pawan, this site, certain sites, as Yash already mentioned, we have a challenge to receive the clear side power connection and the other other applications which we have to do related to the licenses and these things. So we already had an plan for Q4 where 6 center has to be added and balance will be next couple of quarters. All again depend on subject to site availability and other things.
So this is the roadmap to implement the Maharashtra radiologic projects.
Surya Narayan Patra
Sure, sir. Yeah. Thank you. Thank you. The next question comes from the line of Nancy Yadav from Allegro Capital Advisors. Please go ahead.
Nancy Yadav
Hi. Thank you for the opportunity to ask the question. And Congratulations on a great set of numbers. I just wanted to confirm the net debt or net cash number for this quarter.
Yash Mutha
I think Nancy, we can provide this number to you offline. Vivek will reach out to you on this. Okay, thank you. Thank you. Next question comes from the line of Meghna Agrawal from Mount Intra. Please go ahead.
Meghna Agarwal
Hello.
Thank you for the opportunity. So I have a couple of questions. First is that what are the new projects for pipeline for the company? Like what are the tenders that is going to be operationalized soon. So Meghna, in terms of new tender, these tenders in the pipeline. But you know, just to ensure that it leads to unnecessary increased competitiveness we would respond to this question offline. Okay. And the second question would be like any update on the Sagistan tender?
Yash Mutha
Yeah. So on the Rajast tender, you know in the previous government we had won the cases multiple times whenever the government had appealed. So we have won this and the High Court orders came in our favor.
Now with the new government discussions are going on. There have been given dates for the next hearing. So as and when we get the updates we will be keeping posted.
As of now we are and as we mentioned in the past as well, we are confident of the approach that we’ve taken so far. Having said that we continue on this growth without Rajasthan as we’ve been mentioning in the past as well. Thank you.
Operator
Thank you. Next question comes from the line of Ranveer Singh from Nuama Wealth. Please go ahead.
Ranvir Singh
Thank you for taking my question. Just two questions. One, how much revenue you feel has been deferred due to delay in projects in Q3 which may come in Q4 or part two, maybe in Q1, FY25, FY26.
Yash Mutha
So just to give you a rough estimate, while I don’t have the details it could be in the range of about 15 to 20 crores that has been impacted in this quarter which you might come in the subsequent quarters because of these moderations or delays or whatever.
Ranvir Singh
Okay, so why I’m asking because 25% revenue growth guidance earlier we had given 17% we have achieved in nine months. So seems that even if that was not deferred still we were sort of that guidance.
Yash Mutha
Sorry if I couldn’t hear the last part of the question please.
Ranvir Singh
So in nine months we have achieved 17% growth. Even if that 20 crore would have come in Q3 still I think that growth, the 25% we may not have achieved.
What I can see based on nine month number. Right. Earlier we had given 25%.
Yash Mutha
Yeah. Had these aberrations not happened or the delays would happen, we would have been on the track to maintain the guidance that we’ve given. And we believe, you know, with certain actions, strategic initiatives we’ve taken, we are hopeful to achieve this by Q4 as well.
Ranvir Singh
Okay, understood. And now the number of test you said that maybe offline you can get. But can you give some trend that for the realization for test is whether this isn’t positively moving, it is uptrending or down trending there in regular design?
Yash Mutha
Yeah.
So if you see our prices are hard coded as for the contracts and the realization really isn’t depending on market forces. It is based on what prices we have submitted some of the recent tenders. If you have to give your reference, they are at slightly better prices in the past.
So yes, from a realization they are increasing. But again, because we are in the PPP business, some of these details will prefer to give it offline. Okay. Okay, thanks. Other questions has already been answered. Thank you. That’s it. Thank you.
Operator
Thank you.
Next question comes from the line of Deepali from Ventura Enterprises. Please go ahead.
Deepali
Good afternoon everyone.
My first question is regarding Apulki hospitals. We were expecting the first hospital to be operational by January or February. What’s the update date? And we were to conduct.
We were to operate 30 image centers from where we were procuring the machines from United Imaging. What’s the update there? How many machines have been procured?
Yash Mutha
Yeah, so with regards to Apulki’s, the hospital getting operationalized. There were certain site delays.
But we are expecting the hospital to get operationalized from April onwards. The construction is almost done. And you know, therefore April is where we believe we can start beginning the operations.
In terms of the equipment purchases from United Imaging. I think Pawan will just give you the side.
Pawan Daga
We have the first order of our within United has already placed out of that two machine has already arrived.
And five years in process will be by end of February or first week of March will be arrived. So total seven equipments which we already placed in order. And out of that two has received.
Deepali
Okay. Have the BMC operational issues been sorted? Like regarding. There were a lot of news which were coming up.
Is it still going on the
Yash Mutha
BMC? All the issues were sorted, you know. However, the BMC project because of reconcurring, you know the budget got over as remote centers have which were added up. So currently the BMC project is on hold.
As and when it comes for rebidding, we will update you.
Deepali
Could you also please make Me understand what’s the structure behind the path and radio centers. Because when we talk about total radiology centers, we have 90 centers, but we have MRI and CT combined 178 machines.
And the tele reporting centers are different. Similarly, for pathology, we have somewhere around 3,400 collection centers. But when we talk about the operational centers of PAAs in the PPT, it’s only 1368.
I’m not able to understand how this is how. How to correlate this data. I cannot understand the whole structure.
Yash Mutha
Yeah, basically we have, you know this. On the radiology side we have CT scan MRI and then we have a combination of CT scan MRI centers. We also have teleradology centers which are basically X ray centers with certain digitizers.
On the pathology side, we have labs and the collection centers which follow the hub and spoke model. So each state, depending on the project tender or the dynamics, there will be certain labs which are connected to collection centers. So that’s basically how the entire structure is.
Deepali
So the reduction in operational path labs from quarter two to quarter three, that is from 1737 to 1368, what does it signify?
Yash Mutha
Could you repeat the question please?
Deepali
So there has been a reduction in the operational path labs in the PPT from 1737 to 1368. There’s almost a 400 center drop in the path operational centers in the PPT. What is this? I’m not able to understand this reduction in the operational patterns.
Pawan Daga
You are talking about the slide number nine. So this is our slide of tender which is under implementation, which are the tenders which already implemented, which has been removed from this slide. If you go on the first slide where the snapshot has been given.
So we have total 178 radiology center, which is up and running tele reporting center, which Yash has mentioned, which is an X ray tele reporting which is in total 1434 and total 121 pathology lab and 3423 collection center of a pathology which are operational. Slide number nine gives the status the project which are under implementation. The project which are already operational and implemented has been removed from from that slide. So it’s a basically tracker to demonstrate that certain projects are under implementation. So if I had an example, X number of labs are under implemented. As they get implemented, they move to the previous slide and you’ll see a dip in these numbers. So it is not the labs going down, they’re actually which were under implementation are now implemented and then they move to the previous slide. I hope this answers Your question?
Deepali
Yes, just 1 last 1368 the operational.
Operator
May we request you to turn to the question queue for the follow up question please. Thank you. The next question comes from the line of Neha Kharodia from Abacus. Please go ahead.
Neha Kharodia
Yeah hi, good afternoon everyone and thanks for the opportunity. So my question was regarding the guidance on the sales growth. So we have earlier alluded to the sales growth of about 25% for the year and so far in nine months we have been at a run rate of 17%.
So just wanted to understand how to look at it going forward for the year.
Yash Mutha
Yeah. So Neha as we said in terms of our guidance earlier as well though we had certain let’s say volume moderation or operational setbacks in Q3.
We are aspirational and you know positive about achieving this by the end. There are a lot of strategic initiatives we are in place including faster ramp up of our business as well as you know including the increase of volumes. So we are positive to achieve the guidance that we quoted for the by end of Q4.
Neha Kharodia
Understood. So that would mean a very high sequential as well as year on year growth, 40% such kind of growth.
Yash Mutha
So that.
And we are as I said we are working ferociously to achieve it. There are certain initiatives we’re trying to roll out which would hopefully allow us to achieve these guidance that we’ve quoted for.
Neha Kharodia
Understood.
Great. And also regarding the receivables that were pending from Himachal Pradesh and Karnataka. So that was that number was in range of 120 cr.
So just wanted to understand how much of that is spending currently.
Pawan Daga
Crore of Himachal Pradesh has already received as I mentioned already on the call and certain another payments from Himachal which is already approved at a large stage where we are expecting by end of February or first week of March and certainly this is not restricting us to collect the balance amount which we are again going forward. First the second branch of their payment will release to us and about Karnataka the the payments are already has been approved which are at the final stage to be get released to us maybe in a couple of weeks maybe we are expecting the payment to be received.
Neha Kharodia
Understood.
Is this understanding correct that maybe by Q4 and or by end of FY25 the balance receivables will be recovered both from Karnataka and HP.
Yash Mutha
Yes. So we are you know like we mentioned earlier as well whilst in HP we’ve seen traction.
We’ve received our money in almost 30 crores plus on the Karnataka front also there have been approvals and we are Awaiting to get the payments. Hopefully by end of this financial year The Karnataka and HP put together should come somewhere between 90 to 100 days. Is what we are, you know aspiring to or targeting to.
We of course our efforts are to ensure that we collect as much as we can.
Neha Kharodia
Understood. Thank you.
Operator
Thank you. Next question comes from the line of Aditya C from Incred Asset Management.
Please go ahead.
Aditya C
Hi. So if I read the slide 9 correctly the projects under implementation in MRICT I.e.
Radiology is 90 on a base of almost 180. Does that imply 50% expansion in capacity And a similar growth in the collection center where we see 1850 getting added on 3400. So is the inference correct that we see a 50% capacity expansion on today’s base?
Pawan Daga
So radiology slightly correct.
And the pathology collection center if you see see 1368 which is already a part of 3000 plus collection center. So which is already there added in the kitty. So only now 489 pathology collection center has to be added.
So this 1300 collection center has not added just in one quarter. This has been operational over a period of last nine months or a three quarters.
Aditya C
Got it.
And what is the number for pathology labs that are yet to get that are supposed to be added on Today’s base of 121?
Pawan Daga
So maybe the project in hand. Currently the Jharkhand Lab which is under implementation.
So by Q4 end or maybe in the first quarter of next financial year the Jharkhand Lab will be implemented maybe the first month of quarter one of next financial year.
Aditya C
Got it sir. Thank you.
Operator
Thank you. Next question comes from Pranay Khandelwal from Tirthan Capital. Please go ahead.
Pranay Khandelwal
Yeah, hi. Thanks for the opportunity. Just wanted to ask get some clarity on the receivables front only can you give the absolute amount per receivables as of nine months end.
Yash Mutha
Yeah, we provide these numbers to your offline.
Pranay Khandelwal
All right. And also also wanted to know about Apulki.
So Baner is almost done. I believe there was another that was finalized which was the Kalyan Center. What’s the update on that?
Yash Mutha
So the Kalyan Doom Beverly again.
You know the agreements have been executed and now they will initiate the process of constructing the hospital. So that is also currently progressing well. And we should see the site also getting implemented within the next year and a half.
Pranay Khandelwal
All right. All right. And can you also provide me the radio pathology breakup for last quarter?
Pawan Daga
So last quarter our radiology stands for 51% and pathologies at a 49%.
Pranay Khandelwal
Okay. All right, all right. That’ll be all from my side.
Thank you.
Operator
Thank you. Next question comes from the line of Shivan Dawe from Prodigy Investment.
Please go ahead.
Shivam Dave
Yes, I am audible. Hello.
Operator
Yes sir, please go ahead.
Shivam Dave
Yeah, yeah, hi. I wanted to understand what is the total investment that we’d have to make in the B2C segment, say in the next one or two years.
Mitesh Dave
Well, hi, Mitesh. This side. So for retail space as such, we are hopping mainly on our existing infrastructure wherein we are going to leverage our existing labs and the radio centers, which calls for pretty less investment as compared to anywhere else.
Secondly, we are expanding our network through the asset light model. Again, that adds up to the very less investment, whatever may be the investment that we look out for. That would be mainly towards the creating awareness and doctors and the patients outreach program.
And that won’t make it up much significant investment outlook.
Shivam Dave
Okay, is there any way you can quantify that?
Mitesh Dave
Well, we are in a process of expanding. We have initiated the operations and all how the market behaves, how the dynamics changes and what are the really requirement comes across that will decide the overall course of investment.
Because that won’t be that significant. So even we haven’t quantified for now what exactly we look out for.
Yash Mutha
Yeah.
So just to add Shivam, the way we mentioned earlier, our investments in the lab setup and the diagnostic center has already been done. The investment in terms of franchisees or the KBS is not on our account. It will mostly be done by the franchisees.
The investment that we will be doing is mostly on the resources side that labor terminals and maybe certain marketing spends and which of course, you know, as we are seeing the encouraging results, you know, we can provide you with a more finite answer hopefully by the end of this quarter or you know, beginning of the next financial year.
Shivam Dave
Okay, okay, that’s helpful. And going forward, like let’s say three years out, do we expect like 10, 15% contribution from B2C on our overall business or something more than that? Let’s say three years out.
Yash Mutha
Yeah. In fact, we are aspirational to have a higher contribution of the overall B2C revenue to the total revenue piece. We believe it will slightly go and then increase in the subsequent years.
Shivam Dave
Okay, okay. And just my second question was on our overall roce, right. Today we are doing around, I think, if I’m not wrong, 10 or 12%, you know, how do you think this should materially change going forward given that, you know, we are entering B2C and we have certain Investments that can materialize.
Where do you think this ROC number can go going forward?
Yash Mutha
Yes. So if you see the ROC is a fraction of the investment that we do and the revenue that is generated and consequent the returns out of it. Given our model, where historically we’ve seen there’s been significant investments in the last couple of years, but the revenue has not been commensurate to the investments we do.
So the RSV does look subdued. We have tried different initiatives to also further improve the roc, including the asset light model that we are trying, the B2C space where we’re flooring with asset light, you know, the lesser investment. So these, you know, combination of these various initiatives that we have implemented, we see the ROC certainly to improve in the years to come.
Even if you see from a trajectory perspective, the ROC has been improving quarter on quarter and we expect with this various initiative the ROC to continue improving in the subsequent quarters. Right. Okay. Okay, that’s helpful. Thank you.
Operator
Thank you. Next question comes from the line of Amruta Tehakar Sani from Wealth Managers India Private Limited. Please go ahead.
Amruta Deherkar Sane
Thank you for this opportunity.
So my question is, apart from Rajasthan, where you know, the tender stuck right now, are there any other tenders where we received but which are not under implementation?
Yash Mutha
No, except for Rajasthan, all of the tenders that we won are implemented or under implementation.
Amruta Deherkar Sane
And about the retail segment, the B2C, as in on slide number 8, where you have the statewide breakup of the centers. So the retail centers are included in the.
Or they are not included there?
Yash Mutha
No, they are not included.
Amruta Deherkar Sane
So in which case do we have these 80 KBAs?
Yash Mutha
These 80 KB’s are spread between Maharashtra, some of them in Punjab and some of them in Assam.
Amruta Deherkar Sane
Thank you. Thank you.
Operator
Thank you. Next question comes from the line of Bharat from. Please go ahead.
Bharat
Hi, thanks for the opportunity. So just wanted to get a sense on exactly what is happening in Karnataka, why receivables have gone up.
Can you elaborate what exactly has happened there?
Yash Mutha
Karnataka, see, it’s a project that we’ve been doing for many years now, you know, with change of officers, change of government. They would like to look at the process differently. They have introduced some new process of, you know, automations which has caused certain delays and therefore also delays in the receivable.
But we’re in, you know, conversations with the authorities and hopefully by March and this should be normalized,
Bharat
But the government would have changed almost a year, been like one and a half year old. So why we are seeing this issue is popping up now
Yash Mutha
So basically what happens is, you know, as the bureaucrats come in and you know with the changing government, everyone would like to bring in some new systems. So they thought of bringing more automations, insurance led processes and therefore when these processes are getting introduced, the system gets revamped and therefore there are the challenges that we are currently facing. But again as I said from our experience we see this happening whilst Karnataka we didn’t expect it to take so long. But with the conversations we’re having, we are hopeful that this will get resolved very soon.
Bharat
Right.
And can you talk a bit about BMC issues which which you are facing first? What is the issue and how we are looking forward to it?
Yash Mutha
Bmc, there’s no issue. I think we have delivered what was in terms of the volumes and the budget that was there. Now the authorities are looking to retender it given with a wider scope.
So those conversations are going on as and when the tender gets published we will be participating in. Given our experience per se, there is no issue with BMC anymore.
Bharat
Has that tender been over? Because I thought that tender was received almost a year or two years ago.
Yash Mutha
So what had happened is the tender was for two years but then the authorities added more centers and therefore, you know, with more centers adding up, the volumes increased and because the volume increased, the budget that was allocated got exhausted and and now if they have to increase the budget, they have gone through the new tender process where they are also trying to increase the scope of services. As we are given to understand
Bharat
And does the existing vendor lessons we have been serving that pathway. Do we have an upper hand in that tender then?
Yash Mutha
Sorry, could you repeat the question?
Bharat
So since it will be reintroduced, the standard will come to the market. So we’ll be better placed to standard as compared to the completion.
Yash Mutha
Considering our strike rate and our past experience plus we’ve been doing this project, we are in our opinion better placed to win this tender. Of course in as and when the tender comes, we will be able to evaluate and then take a decision on this.
Bharat
Okay. And is there any update on the Rajasthan tender?
Yash Mutha
As we’ve discussed, you know, with whatever the court hearings which have come in our favor with the previous government, with the new government, there are discussions going on and hopefully more updates, you know, as and when these decisions come through. But we are positive and confident that Rajasthan hopefully should be in our favor based on whatever, you know, the process we followed so far
Operator
May we request to return to the question queue for further questions please. Thank you. The next question comes from the line of Ruchita Kartike from Iwealth Fund. Please go ahead.
Ruchika Kadge
Hello sir. A very good afternoon. So my question was predominantly on a pathology collection center. So if I see from last December we’ve almost doubled down our pathology collection center. But if I kind of remove the realization on it, it’s kind of on a declining trend which was around, let’s say what I have removed is 5000 per day. So that has declined to around 2500. So is this a right way to look at it and what is causing this decline? If you could, you know, help me understand.
Yash Mutha
Yeah. So Ruchika, that’s not the way to look at our business. As I mentioned earlier as well, our business or the pathology side, even if you look at it is a combination of the hub and spoke model. Basically the number of labs and the number of collection centers, the test menu and the prices. So if I have taken an Assam project, the test menu is different. The price of those tests are different. If I take the Odisha project, the test menu, the prices are different. So it is, you know, it will be a wrong comparison to just take the total revenue and divide by the total number of patients because the test menu differs from state to state, project to project. Having said that, when we look at from a business perspective, what we have done is for example in the previous, based on the previous tender that we would have submitted, our ambition is to continue to see how we can increase the prices going forward. You know, considering the investment that we have to make. And accordingly the business has to be seen.
Ruchika Kadge
So we should see it on the number of tests that are being conducted and what is the revenue per test?
Yash Mutha
Okay, so see in certain states, the projects there are X number of tests. You know, it could be say 30 test or 130 test. And then there are prices that are hard coded as part of the tender that is being awarded to us. And these determine what is the project revenue and how it will be. In certain, like for example Rajasthan, they were initially a specialized test and then there the tender came for, you know, normal test. So it will vary tender to tender.
Ruchika Kadge
Okay. For further understanding, I’ll take it offline, sir. Yeah. And sir, if you could give a number like these pathology collection centers that we are seeing that you know, we’ll be adding another 400, 500 centers. So this would come. What is the implementation timeline for the same.
Yash Mutha
We are, as I said from a timeline perspective, we are set up an aggressive timeline to ensure that these collection centers come up and running. Hopefully by end of Q4 there might be certain slippages and they might extend to Q1. But we are targeting to ensure that, you know, they get up and running as quick as possible.
Ruchika Kadge
Same with the radiology, sir?
Yash Mutha
No, Radiology will probably take longer time, you know, because the site has to get ready. You know, the government has to give sides and there are certain infrastructure work that has to happen. Then the equipments are ordered and radiology has a slightly longer duration compared to pathology collection centers.
Ruchika Kadge
Okay, Understood. Understood. Thank you so much. Thank you.
Operator
Thank you. Ladies and gentlemen, due to time constraint, we’ll take that as our last question for today. I now hand the conference over to Mr. Yash Muta for closing comments.
Yash Mutha
Thank you. Thank you everyone for joining our Q3 FY25 earnings call. Hopefully we were able to address to the all the queries. If any questions remain unanswered or if any analysts were not able to come in the queue, please feel free to reach out to our Investor Relationships team headed by Mr. Vivek Jain. Looking forward to interact with you in the future quarters. Thank you.
Operator
Thank you. On behalf of GM Financial. That concludes this conference. Thank you for joining us. You may now disconnect your.