Vijaya Diagnostic Centre Ltd

Leading with Purpose in the Evolving Diagnostic Industry

Dear Shareholders,

It is with great pride and optimism that I present to you the annual report for Vijaya Diagnostic Centre Limited for the financial year 2024. This year has been a testament to our strategic foresight, operational excellence, and unwavering commitment to delivering high-quality diagnostic services. As we navigate through an evolving healthcare landscape, our focus remains steadfast on expanding our reach, enhancing our capabilities, and creating lasting value for all our stakeholders.

Shaping Our Vision

The diagnostic industry in India is poised for significant growth, driven by increasing healthcare awareness, rising demand for preventive healthcare, and advancements in diagnostic technologies. At Vijaya Diagnostic Centre, we are uniquely positioned to capitalise on these opportunities. Our integrated business model, which combines pathology and radiology services under one roof, allows us to offer comprehensive diagnostic solutions to our patients. The Indian diagnostic market is expected to grow at a compound annual growth rate (CAGR) of 10-12% over the next five years. This growth is underpinned by several factors, including an ageing population, increasing prevalence of chronic diseases, and a growing middle class with higher disposable incomes. Additionally, the government's focus on healthcare infrastructure development and the rising adoption of digital health technologies are expected to further drive the demand for diagnostic services.

Our vision is to be the most trusted and preferred diagnostic service provider in India. We aim to achieve this by continuously investing in state-of-the-art technology, expanding our network of diagnostic centres, and enhancing our service offerings. Our commitment to quality, accuracy, and patient-centric care remains at the core of everything we do.

Our strategic positioning in the diagnostic industry is reinforced by our extensive network of 145 diagnostic centres and 21 reference laboratories across 23 cities. This year, we have made significant strides in expanding our geographical footprint and enhancing our service capabilities.

One of our key strategic initiatives has been the acquisition of PH Diagnostic Centre Private Limited, Pune's largest B2C-focused integrated diagnostic chain. This acquisition marks our entry into the Western India market and aligns with our vision to provide high-quality, affordable diagnostic services across the country. PH Diagnostics brings to Vijaya a network of 18 centres, including 3 hubs, 3 spokes, and 12 collection centres. This acquisition allows us to expand our presence in Pune, a region with significant growth potential.

In addition to the acquisition of PH Diagnostics, we have proposed the amalgamation of Medinova Diagnostic Services Limited. This merger aims to consolidate our market position and create synergies that will benefit both entities. These strategic initiatives are part of our broader strategy to create a dense network of integrated diagnostic centres across high-potential geographies. By leveraging our proven hub-and-spoke model, we aim to replicate our success in these new regions. This approach allows us to efficiently extend our services to new communities while maintaining the high standards of quality and care that define the Vijaya brand.

At Vijaya Diagnostic Centre, we believe that our people are our greatest asset. Investing in human resources is a key priority for us, as we strive to attract, retain, and develop the best talent in the industry. Our team of highly skilled professionals, including 250+ doctors (radiologists and pathologists), 1,400+ technical staff and over 1,100+ support staff, work tirelessly to ensure the highest standards of accuracy and care.

We are committed to fostering a culture of continuous learning and development. Our comprehensive training programmes are designed to equip our employees with the latest skills and knowledge, enabling them to deliver exceptional diagnostic services. Our Employee Stock Option Plan (ESOP) is a testament to our commitment to recognising and rewarding our employees' contributions. This initiative not only aligns our employees' interests with the company's long-term goals but also fosters a sense of ownership and commitment among our team members.

Sustainability is another cornerstone of our strategy. We are dedicated to minimising our environmental impact and promoting sustainable practices across our operations. Our diagnostic centres are designed to be energy-efficient, and we have implemented several initiatives to reduce waste and conserve resources. For instance, we have transitioned to using low-energy consuming lighting and electric vehicles, optimised paper usage, and shifted towards digitisation of information. These efforts are part of our broader commitment to contribute to a more sustainable environment.

Our Corporate Social Responsibility (CSR) initiatives reflect our commitment to giving back to the communities in which we operate. During the year ended March 31, 2024, we spent _244.33 lakhs on various CSR projects. These initiatives include promoting education, healthcare, and social welfare. For instance, we supported the construction of a kitchen and dining hall for students at a government school in Raghunathapuram Village, Yadadri District, and provided essential medical equipment to government hospitals. Our CSR activities are aligned with our vision to create sustained value for society and promote inclusive growth.

As we look ahead, we are excited about the future and the opportunities that lie ahead. Our strategic initiatives, combined with our commitment to operational excellence, position us well to capitalise on the growing demand for diagnostic services. We plan to add 10 new hub centres over the next two years, with a particular emphasis on Pune and Eastern India. Our expansion strategy is backed by a strong financial position, with plans to fund these initiatives through internal accruals and existing cash reserves.

We are also exploring new opportunities for growth, including potential inorganic acquisitions in high-potential markets. Our goal is to create a dense network of integrated diagnostic centres that can efficiently serve a broad customer base across India. By strategically expanding and directing our capabilities towards future opportunities, we are confident in our ability to consistently deliver lasting value to our stakeholders.

In conclusion, I would like to express my gratitude to our shareholders, customers, and employees for their continued support and trust in Vijaya Diagnostic Centre. Together, we will continue to build a stronger, more resilient organisation that is well-positioned for future growth and success.