Government tenders will increase our revenue: Pallavi Jain, MD, Krsnna Diagnostics

Pallavi Jain, Managing Director (MD), Krsnna Diagnostics Ltd., speaks about her journey at the helm of the company, scenario of health screenings of the women, Q3FY22 numbers, patients & Tests Volumes, government tenders, strategy to maintain margins and growth drivers among others during a candid chat with Neha Anand, Zee Business. Edited Excerpts:

Q: You are about to complete a decade at Krsnaa Diagnostics. How has been the journey and what were the challenges you faced in the journey?

A: To be very honest, my journey at Krsnaa has been a very satisfying and honouring journey. It gives you internal satisfaction. I always say that when the work provides an internal satisfaction to you, it will reflect in your work. When you give your 100%, which is combined by such a team that encourages you, provide decision making powers to you due to which you are able to implement your plans and ideas, then only you can reach so far. And, I am really thankful and grateful that not only did I get an amazing team but my management team is also equally very very important as it always provided me with an opportunity to implement my ideas without any obligations. So, the journey has been fruitful, amazing and of course the most important that the journey has been wonderful.

Q: In these many years of your experience as a diagnostic services provider have you seen an increase in health screenings of women? Do you see more women are now understanding the importance of health and are taking Tests Every year just the health Screenings?

A: First of all, in an Indian traditional family, I have always felt sad about it and almost whenever I go to events where I am invited I have always emphasised the fact that why women do not give importance to their health. It has always been so that our family, family members where it is our children, elderly people or someone else in the family have been at the top priority of the women, which is not a bad thing but at the same time, we have to take care of our health that is neglected. Unfortunately to say that even in the 21st century, there is a handful of families or a certain percentage, like the upper middle class or the higher class families, where we see that women are taking care of their health. As we say that the women should make quarterly or yearly screening and we see them in a selected category. But as far as Krsnaa's presence is concerned, we are present in rural India, locations which are untouched and these are the areas where women do not keep their health on priority and there is a need to awaken them. We have several government schemes where we take special packages for women but bringing them out for testing is really a challenge. Through your channel, I would like to inform every woman that it is important to know that when you are healthy you will be able to take care of your family in a better way as we are in a habit to neglect our health, which should actually be at the priority because we are not only into business but we are also homemakers. And the role of the homemaker is extremely important, so, we must take care of our health and there should be an awareness programme for the same. We are seeing it in the cities but it is hugely needed in rural India.

Q: Krsnaa Diagnostics' latest quarterly numbers have been quite good in terms of revenue and margins. Tell us through the highlights of the quarter and what led to these strong numbers?

A: First of all, I would like to inform you that our focus has always been towards our working models and if you will also have a look even at the previous numbers and past history then our growth strategies and planning has always been in place. We have never ever have diverted ourselves as well as our focus. I am very happy to say that the teamwork in sense of team-wise targets, i.e., the region-wise breakdown we have our entire team is working and this is a reason that you are being able to see these numbers. The second important thing is that a lot of numbers are visible and I am happy to tell you that despite the COVID outbreak or after a decline in COVID has never affected our numbers because the focus has always been clear that we have a model of providing the best quality of services at affordable prices and we haven't deviated from it. The plus point has been that after the IPO and the work we did during the COVID period, Krsnaa's name has reached every house. There is trust-building, the B2B clients and walking has increased. And, if we have a collative look at it then definitely the number is what you see and going forward also I am sure that we are on a right track and we are going to perform because we have a sense of responsibility that lakhs have trusted Krsnaa and have invested in it, so, it is our responsibility to perform and stand by their trust.

Q: Can you please update about the patient and test volumes amid the resurgence of the third wave of COVID in form of Omicron which increased screenings? 

A: We saw it in screening but unfortunately the saddest part is that people took the third wave lightly because it was such that we are prepared for it. Also, one positive part about it is that not have a great outbreak because till then a lot of people were vaccinated which led to a huge decline in the fatality rate. People have shown some responsible behaviour and focused on screening. Numbers were as usual as we are expecting and Krsnaa has never seen COVID as a business but as a pandemic and as an additional portfolio as there is a pandemic and we have to handle it, cater it, we are responsible towards the society that is why we have a facility available to do the testing and help the citizens of the country. But it is not a business for us. This is a reason that the number of COVID have never played a very large role in Krsnaa's business model.

Q: You recently won Tenders from many state governments like Punjab, Maharashtra, Himachal Pradesh and Karnataka. How much incremental volume do you expect from this?

A: We have won Punjab's radiology and pathology tenders, we won it during our IPO process was going on, and its implementation has started. We are going to install 23 CT scans, six MRIs, set up 30 big labs and 100 collection centres. So, it is a very big project with the Government of Punjab and is being done on a PPP mode and the services have also started at a few places. At the same time, Himachal Pradesh has been a very lucky state for Krsnaa because we started our PPP journey with Himachal Pradesh 10 years back and now, along with Radiology, we have also won a Pathology tender in the state. Formalities like agreement execution among others will be completed within a week with the government. So, we will be having almost 100 collection centres in Himachal Pradesh where now we will be having CT scan services, teleradiology services as well as pathology services in the state. In Karnataka, we are present predominantly in CT scans and MRIs at 14 district hospitals and giving services to the citizens of Karnataka. In Maharashtra, due to teleradiology, we are about the reach almost 800 places. Overall, these projects I have talked about are in their implementation stage and has started at some places but the entire project completion is expected by December 2022. So, you will definitely, see an increase in revenue. I have already talked about our future and we are on track, we know what we are doing, what we are going to implement, what is going to come on the table but giving any future comment right now is not appropriate. But the future growth will be similar to what you have seen in the past.

Q: What are going to be the growth drivers for the company in the future and what is the company's strategy?

A: After the IPO, we are a debt-free and cash-rich company, plus the new projects, which are in the implementation stage. And, if we sum up all these factors then definitely, we see good growth. The kind of announcements we have made and the quarterly results that we are announcing and at the start of the talk you said that our numbers are speaking and these are the numbers at which we are focused and what we are planning to deliver. So, we are seeing a very very positive future and would also like to say that our investors, who have faith in the company will not be disappointed.