Margin pressures to cap upside for Dr Lal Pathlabs as Covid dents volumes

The June quarter performance of Dr Lal Pathlabs was severely impacted by the pandemic denting volumes and revenues. After a 62 per cent fall in volumes in April, patient testing increased gradually with the fall restricted to 25 per cent in May.

The company posted an increase in June of 3 per cent. The gains towards the end of the quarter were led by opening up of more centres across its network, market share gains from the unorganised segment and a favourable base. The company highlighted that non-Covid tests in July were at 90 per cent of normal levels though complete recovery is …