IPCL’s Profit Down 79% Amid Lower Revenues and Rising Costs

• Image Plus Consultants Limited (IPCL) recorded net profit of $43.93Mn for the financial year ended February 28, 2025, a 79.3% YoY decline from $211.93Mn in FY2023. A scan of IPCL’s income statement shows that lower revenues and rising costs caused the decline, even as the company continued its capital expansion strategy following its 2023 IPO.
• Revenues fell by 9.6% ($114.79Mn) to $1.08Bn, reflecting lower diagnostic volumes and pricing pressures across services, particularly X-Ray and CT scans, according to management. With revenues down, gross profit also slipped to $712.3Mn, down from $764.8Mn a year earlier.
• Reflecting higher professional fees and general inflation, administrative expenses also increased, rising by 9.7% YoY to $524.0Mn. More notably, depreciation and amortisation expenses nearly doubled to $108.4Mn, owing to the ramp-up of high-value imaging equipment, including MRI and mammography machines.
• With interest payments on a suite of new loans taken to fund equipment purchases and facility upgrades, finance costs doubled to $38.7Mn from $14.2Mn in FY2023.
• With lower revenues and higher expenses driving the 79.3% decline in net profit, earnings per share declined from J$0.17 in the prior year to $0.04.
• At market close on Wednesday, IPCL’s stock was J$1.03, down 1.9% from Tuesday and 39.9% since the start of the year. At its current price, IPCL trades at a P/E of 25.75x, which is above the Junior Market Health Sector average of 23.26x.

(Source: IPCL & NCBCM Research)