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Digital healthcare platform, Practo, experienced a slight decline in its growth momentum in FY23, in contrast to the substantial revenue surge observed in FY22. Despite this, the company effectively reduced its losses by 58%.
According to consolidated financial statements filed by Practo Private Limited in Singapore, the platform’s revenue from operations dipped by 3.2% from ₹211.2 crore in FY22 to ₹204.4 crore in FY23.
Diagnostic and consulting services contributed 50% to the total operating revenue, witnessing a growth of 9.7% to ₹102 crore in FY23. The remaining income is derived from subscription services, software sales, maintenance services for doctors and clinics, and other operational activities. Practo operates through 12 subsidiaries located in India
It is important to note that finance income has not been included in the revenue calculation for Practo. Similar to many tech startups
Various expenditures, including consulting, surgery, professional services, advertisement cum promotion, procurement of materials, and other overheads, amounted to ₹345.6 crore in FY23, down from ₹452.6 crore in FY22.
Practo’s strategic cost-cutting measures, particularly in advertisement and consultation costs, led to an impressive 58% reduction in losses, bringing them down to ₹99.4 crore in FY23 from ₹236.5 crore in FY22. The company’s ROCE and Ebitda margins improved to -37% and -39%, respectively. On a unit level, the company spent ₹1.69 to earn a rupee in FY23.
Established in 2008, Practo serves as a tech-enabled bridge between doctors and patients, offering ancillary services like telemedicine, pathology, and medicines. Despite being an early mover in the sector, increased competition in the digital realm may pose challenges for Practo going forward.
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