Metropolis Healthcare Limited (METROPOLIS) Earnings Call Transcript & Summary

[Audio Gap] as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. We have with us today Ms. Ameera Shah, Managing Director; and Mr. Vijender Singh, CEO. I now hand the conference over to Ms. Ameera Shah, Managing Director of Metropolis Healthcare Limited. Thank you, and over to you, ma'am.

Thank you, and welcome, everyone, to our investor call. Just wanted to give you a quick briefing. Normally, as you know, we took quarterly calls, but since we are in unprecedented times and there's been a lot of volatility globally, we thought it may be a good time to just quickly address investors and sort of share how things are going and what we are thinking. I'll just start with how the quarter has sort of developed. We've actually seen Jan, Feb and March, all till the last week of March, being as on track. We saw a healthy volume, we saw healthy realizations, and the business growing and progressing in the direction as we had expected in the beginning of the year. There were no surprises there at all. And I think we were quite happy with even the receivables and many of the other parameters that we have been focusing on as per our last quarterly calls. Of course, now with COVID-19, there have been some disruptions in the business in the last week of March more specifically, in the last maybe few days onwards. We have seen disruptions on few areas. One, obviously, has been customer walk-in. As there's a lockdown in 75 districts all across the country, people are not able to leave their homes. And therefore, obviously, customer walk-in has been are disrupted. There is a volume dip across the network and specifically in B2C and B2B. Again, in B2B, hospitals have canceled OPDs, which means patients are not allowed to come there for anything, which is not emergency. We are only dealing with emergency surgeries and all elective surgeries have been canceled. All labs, B2B labs are shut. And therefore, the B2B business is also affected. Naturally, because everything is closed, there is a delay in payment on the side of B2B network and institutional contracts because everything is shut now until March 31. Otherwise, we were expecting a pretty good drop in DSO days. The availability of raw material and chemicals, so far, has not been interrupted. But usually, we keep a stock of about 40 to 50 days. So therefore, we haven't set the pinches yet. We, of course, will have to see how things are going forward as trading lines get disrupted. Availability of manpower and shortage of staff, so far, again, our employees have been real charms, and they've been showing up to work and making sure they do everything that's needed to be done. With the lockdown in place, of course, this is becoming more challenging for people to travel. So we have really gone out of our way as an organization to put safety of our employees as a first priority. Not only did we, about 2 weeks ago, not only did we organize all the usual things in terms of masks and sanitizers and travel, et cetera, but we've had to go one step further being in the line of health care, where potentially, our staff is exposed to patients. We want to make sure that we are taking the right protection to give them that comfort that the company has their back. So that has been on the sign of the corona-19 disruptions. Now the opportunity, of course, on the other side is that we are one of the very few labs in the country, which has been approved for COVID-19 testing. This came through only on Saturday night. It took about 2 weeks of work before that when I was working personally, very closely with NACO, the Ministry of Health, the P.M. Office to create a policy for how India is going to tackle this health care crisis not only on the diagnostics side, but also on the provider and the financing side of it. We were fortunately, after 2 weeks of work, able to somehow manage to explain to them that private lab testing is very much required, and they expanded it from the government to private. We were able to negotiate a price with the government that we could charge the patients. And we were able to expand the kits on the chemicals required to be able to use for testing, as we know, which are in serious short supply globally and be able to get at least some resources for India because we know that these numbers from here may expand. So I think with the work that we've all done, I think the policy has come in place. We started our testing today -- or well, yesterday, on 23rd March. The testing cost to be borne by the patient is INR 4,500 per test. Metropolis has been offering these things -- these tests at this point. A lot of people have asked me whether the unit economics of INR 4,500 are profitable or loss-making. We know for sure that we are not loss-making. It's very difficult to comment at this point of time as to whether there will be any profitability on this or not because the prices are constantly changing, the input cost, the ingredients are changing. And honestly, it's difficult to have a handle on this because it's only been a couple of days at best. But we believe that with the disruptions caused by COVID-19 on the rest of the business, on the non-COVID-19 business where most companies are now going to have to function like start-up where you have no revenue and a large amount of cost. But of course, in the pathology and the healthcare space, we are not as bad off with other industries, which are discretionary spending, in our case, is very need-based. And therefore, while we have seen our revenue dip, we have not seen a dip that become zero, like, of course, other organizations have seen in other industries. But of course, we will -- we are reasonably cash positive and therefore, can continue paying whatever fixed cost we need for the next couple of months until we tie over this crisis, and which is where the COVID-19 testing will actually come very much in handy because even if we don't land up make more significant profit on it, at least will help us cover our fixed costs, which otherwise would have been there anyway. But through this, we will be able to cover some of our fixed costs in terms of manpower, administration, et cetera. The test will be made available across our network across India. While we are going to be doing the testing in Bombay to start with, we may expand this to a second lab in the weeks to come. As of now, we want to keep more of a centralized testing because that keeps it more economically effective for us and simpler to manage. The capacity of testing at this point of time is quite significant. We don't see a challenge in terms of our own infrastructure to scale up. What basically is required is number of instruments, the availability of kits and availability of manpower. If this goes on and gets the ramps up the way that we are expecting to in terms of numbers, we are reasonably prepared after the next 3 to 4 weeks to be able to ramp up capacity with the projections that we have. In the meantime, we are placing orders to be able to get more machines, more capacity in terms of more spots, the more supply of kits. And hopefully, the manpower will continue to stay strong in terms of their commitment and efforts towards this call. The infrastructure cost in terms of setup is not significant. We already have majority of the things that are needed for running the corona COVID-19 tests. The infrastructure, the BSL to units, the biosafety cabinets, these are also some of the medical things needed. But what we may need more of are some instruments. Fortunately, these instruments are not too expensive. We've already ordered 10 more instruments, which should cost us maybe INR 70 lakh to INR 80 lakh. It's not very significant at this point of time. And as we ramp up, we may need to buy some more machines, so there will be some CapEx requirement there. But otherwise, we pretty much have everything in play. As discussed, the testing of the rules and regulations currently for COVID-19 means there are only a few labs in India that have been appointed. We actually have been the first in India to start testing today. Nobody else actually has really started in the number of home business. We started accepting bookings yesterday. And we have lined up almost a few hundred today itself. And obviously, we expect this to ramp up quite significantly. I'm just going to stop there and open it up for some questions and answers. I'm very sure that the business consistency continues to be a very substantial and a very strong, sustainable business. And I'm really hopeful that while we face this global crisis altogether and we've come over this in the next few months, we will have the ability from a management leadership perspective, from a cash perspective, from a balance sheet perspective today at our disposal. And obviously, healthcare and specific diagnostics and specifically Metropolis, with our thought leadership and with our first-mover advantage, should be in a place to be able to overcome this as well as possibly can with all the unknowns in place. I'm just going to open it up for any Q&A that you may have at this point.

[Operator Instructions] The first question is from the line of Chandramouli from Goldman Sachs.

My question is related to it something you mentioned earlier on in your prepared remarks on the volume impact that you're beginning to see over the past 2 to 3 days on the illness and wellness side of the business. So if you could just give us some perspective on what sort of magnitude you have seen in the short space of time in terms of what the volume impact has been on wellness and illness specifically.

So I don't have any specific numbers for you as it's been only very, very short. As you know, till about Friday last week, we were not seeing a significant dip in volumes. It was maybe changing 5%, 10%. And then, of course, on Saturday, the P.M. asked us to do curfew on Sunday. So obviously, Sunday was -- we still had revenues, but it was not obviously as significant as more Sundays. And then the lockdown and the curfew seems to have continued, so we've had very limited time to really assess only, really a day, which was yesterday. It's very difficult to answer that question. I think we will probably be in a position better maybe after a week to give you a more specific answer because each day of the week also has different levels of realization and volume during the week as well. But off the cuff, very difficult to comment, but my sense is, obviously, there would be a reasonable amount of disruption due to COVID.

The next question is from the line of Karthik Chellappa from Buena Vista Fund Management.

Congrats on getting the approval for conducting the test. My question is just on the scalability. So you had mentioned in your opening remarks that you started it off in Bombay and turning to other centers. And I'm being informed that there is also a local company called Mylab which has started making these kits, and they can make about 100,000 kits a week. And the results are available in 2.5 hours. I mean that has already received ICMR evaluation. If that is the case and if you're able to source it, what it means that you can scale up this capacity much quicker? And are you conducting the steps somewhat in isolation in your labs as opposed to other tests as a precautionary measure? Or is that just not needed at this point?

Sure. So yes, company -- 2 lab companies, Mylab and Altona, that, along with ICMR and ART COVID Task Force, which was a public-private task force together that we got included by ICMR and by NIV as a list of kits. Just a small correction, Mylab is able to do about 50,000 to 60,000 tests per month in terms of production capacity, not 100,000. They have started their production today, which means their first batch of kits will be available in 48 hours. So today, they are still not providing kits to all companies, while even though the approval has come through, et cetera. So we -- while we have started testing, we have started testing with some other vendors which have been approved, but we do obviously have commitments from all the vendors in terms of providing us supply. Some of these companies are still figuring out their own production capacities, so we don't have any specific numbers. But I do believe that being a leader in the industry and having good relationships with these vendors, we should be the first point of contact or first or second point of contact for most of these vendors in terms of working with us and partnering with us to be able to ramp up capacity quite significantly. Your second question in terms of isolated space, we have created a separate space which will be a specific COVID-19 lab. This has got separate safety, separate cabinets, separate entrants that could exit different air pressure. It has been created according to the standards that are necessarily for PS unit 2 and obviously, the following of the safety precaution that need be follow-up.

Got it. Excellent. Just one follow-up, and I'll go back in the queue. Even in a Section 144 situation, your patient collection centers can still function, right?

They are functioning, but in most cases, patients, like I said, the way they normally come to us, is if a patient fall sick, they go to a doctor. They do an examination, doctor then gives them a prescription and then they come to Metropolis. Now when the doctors themselves are not practicing or keeping the clinics open, what is happening is that patients who are sick at home are having mostly to self treat or self manage. And therefore, the availability or the requirement for diagnosis has gone down because they are not getting prescriptions from doctors. So definitely, it has affected the walk-in business into our collection centers. And second, wireless go-through has been put in place by the government, although the implementation of it says that for essential services, the patients can leave the house and go and go to a lab. The execution of that still is very early, and we are finding that the law and order and police, et cetera, are not knowing how to enforce that fully because this is all only happened a day or 2 ago. So our sense is that probably it's going to take a week for a lot of these things to get implemented properly. And hopefully then, the lockdown will have a little bit more balance. Right now, it's very much an extreme situation.

The next question is from the line of Praveen Sahay from Edelweiss.

So ma'am, can you give some color on the per day testing capacity you have currently? And as you had already mentioned that you can go for our next lab by next week or so, so how many labs are acute of a Metropolis to do such kind of a test?

So we have about 5 -- 4, 5 labs -- sorry, we are totally about 7 labs, which have the capability to do PCR testing across the country. But not all these 7 labs have driven approved for H1N1 testing, which we were doing last year. So the important thing is that we don't want to have too many labs in the country, which are doing this test. The reason is because in every place, you have to then create the infrastructure and have the same safety protocols for people. What's more important is to actually isolate and identify the geographies in the clusters in which you are seeing a higher density of potential positive patients and therefore, more screening and be able to really focus energy there because, as you can imagine, the execution of preparing for this kind of a crisis is not easy. So while theoretically, it may sound like, okay, start in all 7, but to organize the resources that are required to operate in all 7 locations doesn't make sense at this point, so we will do it in a more feasible manner. While we have started Bombay immediately, our goal is to start a second lab, like I said, in a week or 2, once we've decided with is the other cluster that we would like to go after. I hope that answers your question. In terms of capacity, this is an ever-evolving situation because like capacity is about 3 things: it's about manpower, it's about machines and it's about chemicals. The manpower we have, the machines we have, the chemicals is today is still an unanswered question fully. We have the capability to be able to do home services of 100 patients a day. That's not a challenge. We also have the capability in terms of the machine to around hundreds of tests a day, and that could very quickly be ramped up to 1,000 tests per day. It's not challenging as long as we have the supply of kits.

Yes. So I can't hear the last part from in the line...

So the last part in terms of capacity, I just said that while we have the capacity to immediately, this week, run hundreds of tests per day, we very quickly could ramp up to run thousands of tests per day, but it all depends on the availability of reagents and chemicals who run the test. If we get the reagents, then I don't think we have much of a challenge.

The next question is from the line of Gurpreet Kaur from [ Anderson ] Partners.

My question is just a clarification on the manpower. So at this point, are you seeing all the staff that you need showing up to us? And as you ramp up capacity, will you need -- do you have the available stuff? Or do you actually need to hire more or if you can give us some guidance on that, if you see that as a real risk in terms of manpower?

See in terms of manpower, we would break it up into front-end manpower and the back-end manpower. Right now, on the back-end manpower, technical manpower, while the nontechnical teams are all working from home, the technical teams are still coming into the lab because obviously, their physical presence is required. The technical teams, which are back end, we don't see too much of a challenge. We are absolutely fine in terms of resourced in number of people to do the test. I think the typical risk is the people who are on the front end because they are the ones potentially who come in contact with patients, whether or not they are positive or negative. And that's where, in some pockets of the country, we are seeing a great willingness and commitment to really be able to contribute to this cause in some pockets. In more limited pockets, we are seeing people who are more scared and a little bit more fearful of being on the front end. So as a company, we've come out with a policy to give them comfort and really have their backs, whether it's life insurance, whether it's hospitalization, whether it's quarantine facilities, isolation facilities, giving them the comfort that we would be taking care of them if something were to go wrong. But -- and we have also the tie-ups and the partnerships to complement and accelerate our manpower with third-party vendors, if needed, in certain pockets of the country for the front-end resourcing.

The next question is from the line of Sameer Baisiwala from Morgan Stanley.

Just a quick one on the PCR machine. What's the daily throughput per machine?

The PCR machine, it depends on the kit. The PCR machine itself, some of them, depending on the kit, can do 22 tests or 25 tests per batch. Some of them can do 70 tests per batch. And a batch could potentially last for a few hours. So the same machine could be doing 3 or 4 batches per day. So it really depends on what kit you're using. That will change the multiple there.

Okay. And have you mentioned speaking in the call that you want to buy some equipment and some machines? So were you referring to PCR machines?

I was. I was referring to PCR machines, yes.

How many do you have right now? And where do you see this count go up to?

So I don't have the specific number, but we have, obviously, enough capacity at this point of time, but we've already ordered, I think, multiple more machines, I think, 10 or 15 more machines, which we expect to come in, in the next couple of weeks which will help us ramp up to Phase II with the higher numbers that we think will come in through the screening.

Okay. Sorry to pursue, so the 10 to 15 will double your current account or...

Yes, it should.

Okay, okay. Got it. And then just one more. So between all the private labs put together, which is now roughly 79, 80 and then 111 from the public sector side, which is a government hospital, how do you see this capacity in total going forward? Will it be 50-50 between the 2? And why is government seeing such a low number? I think I was seeing today in ICMR saying they're right now doing 1,350 tests per day, which looks below in the context of where you think you'll be able to ramp-up in the next few weeks.

So just one correction there. There has been some list circulating which showed 79 labs a year ago. The list is inaccurate. The correct list has been 13 labs which has been approved, 13 companies which have been approved. Most of the companies have only 1 of their maximum 2 labs. So really, the number of labs we are talking about is about 15 or 16 labs across the country. These are in different regions and different states of India. Metropolis, as you know, has been one of the few appointed in Bombay. But of course, we collect examples from anywhere. Most of the other companies that have been appointed are mostly regional labs, so they can only collect from their street because they don't have distribution all across the country. So it's only the national chains, which are SRL and Metropolis which would have distribution across the country and the ability to collect samples from all pockets and bring it wherever they are doing the process. So that was just a clarification on that. Sorry, your second question was about the capacity between public and private. See private -- public so far, each lab of ICMR is doing approximately 50 to 60 tests per day even though their capacity was to do maybe 500 to 600 tests per day. The reason for that was because the screening criteria had been kept very, very limited to only patients which are coming in from international travels and which had symptoms or if you were connected to a patient who has found to be COVID-19 positive. The screening criteria was very, very tight, which is why also possibly the numbers in India have been quite poor towards your second question. My sense is that if you look at whole healthcare overall keeping aside COVID-19, even though private infrastructures on 30% of India private infrastructure has taken care of 70% of India's health care requirements. While the public infrastructure, even though it is 70% of physical infrastructure in India, it only takes care of 30% of India's health care requirements. My sense is you will see a similar thing happening for COVID-19 because while the government does have probably more facilities, but probably, the private industry will be able to have much distribution and much more access all across the country to be able to collect. Of course, non-affording patients will continue to go to government, but I think all affording patients will probably move to private because they will be more comfortable with the safety, the hygiene, the fact that we are coming home, we are picking up the sample, the electronic reports, quality, et cetera.

The next question is from the line of Prashant Nair from Citigroup.

I joined 5 minutes late, so apologies in case if this has been covered. Just a couple of clarifications. One, you mentioned that kits is the possible constraint. Now my question was, are these kits linked to the machines you have? As in, do you have to rely on one supplier alone from whom you would have bought the machine? Or can you look at multiple suppliers?

These PCR machines are open systems which means you can look at multiple suppliers. The only limitation is the supplier which are approved by ICMR, which are U.S. FDA or CE approved. Now of course, these criteria can change, and we are also pushing ICMR and requesting them to expand the criteria and approve more and more manufacturers because if we are only limited by these, then, of course, there will be a bottleneck. ICMR has shown great willingness and a lot of speed in the last few days is really approving more and more such manufacturers, so we're very hopeful that supply will not become as big a restriction as it has been in the last few days.

Okay. And my second question relates to the manpower availability that you mentioned, so just wanted to understand whether it is a collection part where you think you could face a constraint or at the back end, people who are able to do the industrial part?

The back-end piece we don't believe should be a constraint. It will be more the front-end side where having enough people who are willing to go to home services and be able to collect the sample. At this point of time, we are not finding any capacity issue on the front end either because we have geared ourselves up to be able to do very large numbers in the places that we are focusing our energies on. Of course, if these numbers double, triple quadruple and grow 10x in the next week or 2 weeks, then we will have to ramp up our front-end efforts. And we have already put in place also some potential third-party vendors and partnerships that can help us in enhancing our supply on the front end.

Right. And just one last question for me. The prescription that someone who comes in to get tested needs to get it, can it come from a doctor? Or is there any specification on which kind of medical professional needs to give the prescription?

It can be from any qualified physician. However, the ICMR has put out clinic criteria that they are putting as a recommendation guideline for these qualified physicians to follow. And as long as a qualified physician you are making your own personal judgment and assessment that this patient requires a COVID-19 test and you give us a prescription, that's enough for us to do the test.

[Operator Instructions] The next question is from the line of Nikhil Rastogi from Capital Management.

So my question is on the promoter pledge, so this wasn't an issue until a few weeks past when the share price was strong. But if the uncertainty regarding COVID-19 remains, share price would be weak and pledge could become an issue. So can you share your thoughts on how the promoters are thinking of managing that risk?

Sure. So if you actually see it till about 5, 6 days ago, which is till March 18, our stock price was very strong. It was at INR 1,750. There was absolutely no issue. What we have seen in the last 4, 5 days is basically some employees who had loan against shares, their margin calls happening. And if you see the volume of shares that are being traded are very small on the exchange at this point, it's only about 50,000 shares per day. And therefore, when these employees had their loan against shares invoked and they were not able to put up the margin calls which is where they had to do with the stress sells. So whatever drop we have seen in the share price this week actually has been mostly because of that. We have not seen large institutional investors exit the business post-March 18, so I just wanted to clarify that. As far as the pledge -- promoter pledge goes, for the last 2.5 years, the credit -- I mean the lenders that we've been dealing with, we have been servicing the interest absolutely on time. In fact, the last interest we paid was March 11, so just before hell broke loose with corona. So we are absolutely on track as far as that goes. And when we had done the public issue, I had pledged about 26% of shares at that point of time, which I had reduced in November because the stock price had moved up to about 19%. We are currently still at 19%. And out of INR 2.88 lakh shares that we have less than INR 1 crore shares are pledged. So frankly, I don't see too much of an issue at this point of time from a pledge perspective. As I have always mentioned and maintained, my goal was as soon as the lock-in got over, over the next about 12 months to be able to exit whatever pending debt there is when we -- of course, the lock-in gets over closer in April. So at this point of time, I don't anticipate any issues on that. And I think we are quite comfortable as far as the pledge goes and the interest of it.

Okay. That's helpful. So when is the lock-in getting over for you?

It's 1 year from IPO, which I think is around April 8.

I've got specific questions on -- yes. Go ahead. Please, go ahead.

I was just saying that while the lock-in gets over on April 8, of course, as there are certain SEBI rules and regulations which don't allow me and my lock-in to actually physically get over, I think, to sometime towards end of May.

The next question is from the line of Jayesh Gandhi from Birla Sun Life.

My question is regarding the capacity constraints that you mentioned. Just from my understanding, the constraint is more on the reagents, the chemicals which are used for a test? Are they imported, and that's why you have a bottleneck?

So the reason there is a supply constraint on them is because, one, the strain of corona, which is why it's called COVID-19, was not necessarily around before. So as people found it happening in China in December and early Jan and by the time there was an understanding of it, people have to start doing the R&D to actually create the kit that does the testing specifically for COVID-19 as a stain of virus, right? So it took some time to do the R&D behind it. The few international companies that got ready were all imported. And therefore, companies like Roche and GeneXpert by Cepheid and few other firms who actually were able to get it ready, have only got U.S. FDA approval and that too and the emergency use only in March, right? Meanwhile for some indigenous companies, creating these kits on their own in February in India, and they submitted their results to ICMR and NIV for approval. And approval out of the 9 companies that submitted their results, only 2 have been approved from quality perspective, which is what got approved only on this morning, which is Cipla's. So that's what's creating the supply constraint that very few companies have approval, which we are only able to use 3 or 4 companies, and most of them are international. And therefore, there is a resource fight over many countries about who gets what.

Understand. Fair enough. And the second thing you mentioned about distribution, et cetera, I'm surprised maybe if you do not have that many collection centers, you could very well use third-party providers and local labs which are operating to collect samples for you and which can be tested in your lab. So all that should be working full force very soon, I mean that's where it comes from?

Just to clarify as to how this whole thing works. So number one, we have 2,900 collection centers or not that we have any less collection centers. We have ample access across the country. We also work with another 10,000 labs and hospitals. What you have to understand is that, at this point of time, all those 10,000 are closed, right? And therefore, they are not operating at all for us to be able to use them because, obviously, they are all under curfew and their employees are not coming to work and they are not able to have any revenues and therefore, the can't sustain. So one of the things that we will evaluate as we go forward is can we use some of these B2B touch points to collect samples, that is something we'll evaluate. But considering everything, there's volatility around policy, pricing, people, machines, reagents and safety, the execution for all of this is pretty much changing on a day-to-day basis. So our focus has been to first start with keeping things and focusing on Phase I is that let's focus on home visits, which is what is recommended by the government as per ICRM guidelines, build up our home visit facilities, build up our capacity at the back end. Once we put that on auto mode pilot which will take us another few days since we've only started today, we'll then move to Phase II, which is about how do we expand that distribution.

Understand. Yes, exactly. So -- because everybody is at home, most of the testing -- or most of the collection of samples also happens at home, and that is where your touch points should really make the difference. So as I see it, you should be up and running in terms of your lab utilization very soon to a decent level in the next few weeks, if not base.

Yes, we are already up and running. Like I said, we are doing the first batches of testing as we speak, so we're up and running. And now it's going to be all constantly enhancing capacity from here. So the first stage is already done. We're up. We're moving. We are already billing patients. We are doing testing. Now it's about going to be about how we keep enhancing capacity.

Fair enough. And my final question is on your regular business, one of the reasons why it is down is because the hospitals are not doing other type of surgeries and other type of -- they are not taking other types of patients or they're postponing the medical requirements, which are of higher levels or serious level. Is that the case?

It's 2 reasons. One, if you see private sector in India, majority of private sector healthcare in India is done by doctors who fix their own clinics, right? Each of these doctors are specialists or GPs, and they see 10 -- 5, 10, 15 patients per day. Now most of those clinics are shut because either patients are not coming into their clinics because of curfew. And everybody is delaying and deferring consumption because they don't want to get out of their homes out of the fear of corona. So therefore if doctors' clinics are shut, there is nobody else really to refer patients to catch labs. So that's probably the biggest reason. And the second reason, like you said, rightly, is the same where hospitals are not entertaining any non-emergency visits, clinician visits or patient visits at all.

[Operator Instructions] The next question from the line of Prakash Agarwal from Axis Capital.

Just one question. So in terms of home test samples, you mentioned -- so the footfalls are impacted, home test samples, not so. So what is the percentage that we have these for-home test samples? And if at all that is impacted, what would be the percentage on that?

You're saying for non-corona?

No, simple like the regular business.

So I guess, again, as I was mentioning earlier, we don't have any specific numbers because it's only been 1 or 2 days now. So it's very difficult to give you a proper quantifiable number as to how much is affected. But obviously, considering more people are sitting at home and doctors are not working, there will be a reasonable disruption. But of course, unlike other industries, which are completely discretionary, the business was not going to come down to 0. Now whether it's going to be 30%, 40%, 50%, 60% or 70%, it's very difficult to tell today because it's only happened for the last 1 or 2 days.

Yes. So last couple of days, a decline, I understand, but what is the usual share of home test samples versus walk-ins for you?

Usually about 10%, 20%. Vijender any -- is it that the right number?

Yes. At group level, probably close to about 6%, 7% at group level. [indiscernible] group level, 18%, 19%.

Yes.

Okay. Understand. And in the interest of all, just wanted to understand, like 400-plus support pick, which is largely the major cities and towns, do you think if you have capabilities and tests increase, this number could implode, that the towns, cities, villages covers everybody?

Look, I think it's -- we have to look at what's happening in other countries. I think if the government is able to really limit the movement of people, then obviously, it limits the number of people that are able to get infected from towns to smaller towns or from cities to smaller towns. I think it's too early to predict. What I do know and my personal opinion is that obviously, because we have been doing not very high testing in the government labs in the past, my sense is that the numbers are potentially -- definitely higher than what probably we have seen coming out. And I think as private testing expands, I think we'll get a more realistic picture of really how deep the problem is in India.

Yes. I mean the question is actually because all the companies are saying that we're expanding the capability, doubling the machinery and everything, so are we seeing that this is going to implode? Or is this more like a preparatory kind of step?

I don't think any of us would be investing and expanding the capacity, I think, unless we believe that this is definitely going to be required.

The next question is from the line of Bharat Shah from ASK.

One, you'll say these home tests are to be done against prescription. And if the doctors are not prescribing because they are not there, how do the potential people or patients obtain the prescriptions then?

So I think what's happening that is -- that 2, 3 things are happening. One, not all doctor clinics are shut. There are some which are still working, which is why our revenue also continues. It's not become 0. Number two, if there are doctors in hospitals, some hospitals which are still entertaining OPD patients, and a lot of hospitals have started teleconsultation. Now how those doctors are going to, over the teleconsultation, decide whether the patient is eligible for corona 19 testing -- for COVID-19 testing or not? Very difficult I think for anybody to answer that. I think it's an evolving situation. I'm assuming they will visit at home, some doctors may go into home visits, that may be 1 option. But finally, whichever way the doctor does decide, they will have to give a prescription to the patient for us to be able to do the test.

Right. And secondly, on your [Audio Gap]