Jan 30 (Reuters) – Dr. Lal Path Labs reported a lower third-quarter profit on Friday after taking a one-time charge linked to India’s new labour code, despite strong demand for its bundled test packages.
Consolidated net profit fell to 905 million rupees ($9.85 million) in the quarter ended December 31, from 967 million rupees a year earlier.
The country’s largest diagnostics firm by revenue took up a one-time charge worth 301 million rupees linked to India’s new labour codes.
India’s new labour codes – the country’s biggest overhaul of workers’ laws in decades – have dragged profits of large corporates, including those of Godrej Consumer Products, Wipro and Infosys.
Excluding the charge, profit rose nearly 12% to 1.54 billion rupees.
Dr. Lal, which operates about 300 clinical labs across India, saw an 7.8% rise in sample volume in the reported quarter, taking its total revenue from operations nearly 11% higher to 65.98 billion rupees.
Rising focus on preventive healthcare, coupled with diagnostics chains such as Dr Lal PathLabs expanding into smaller cities, has boosted demand for medical tests, particularly in urban markets.
The company also gained from strong uptake of its bundled test packages, which group screenings for multiple conditions, including diabetes and thyroid disorders, into a single offering.
($1 = 91.8890 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee)
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