HealthTech Platform CitiusTech Records Rs 3,500 Cr in FY23 Revenue, Profits Drop by 85%

CitiusTech is a well-known partner for major healthcare and life sciences organizations, specializing in accelerating digital innovation, driving business transformation, and facilitating industry-wide convergence. They offer a wide range of services, including digital and product engineering, data analytics, healthcare solutions, implementation services, interoperability, and integration engineering, as well as consulting services. CitiusTech is recognized for its thought leadership and innovative solutions, with a focus on empowering the future of healthcare through next-gen technology, analytics, and AI. They provide end-to-end offerings to help organizations reinvent themselves, deliver better outcomes, and have a positive impact on patient care. The company’s PERFORM+ Suite comprises products such as DataScale, Contracts, Regulatory, and Stars, which assist healthcare organizations in addressing complex business needs and enhancing performance management programs.

Related: HealthTech Company Healthify Terminates 150 Workers During a Company Revamp

CitiusTech, a B2B health tech platform, has shown consistent growth over the last few financial years. The company proudly announced a revenue milestone of $500 million during FY24, a figure that aligns well with its impressive performance in FY23. According to the consolidated financial statements submitted to the Registrar of Companies (ROC), CitiusTech saw its revenue from operations soar by 40% from Rs 2,499 crore in FY22 to Rs 3,499 crore in FY23. This upward trajectory underscores CitiusTech’s strong position and promising future in the health technology sector.

CitiusTech, a leading player in healthcare technology services, specializes in providing tailored solutions to major hospitals and healthcare institutions. Their offerings span consulting, engineering, manufacturing, and data-driven software solutions. A significant chunk, 97%, of the company’s revenue stems from the sale of its software development, implementation, and support services, with the remaining income derived from software license sales and maintenance.

In the fiscal year 2023, CitiusTech recorded a total revenue of Rs 3,561 crore. Notably, they also generated Rs 63 crore from non-operational activities, showcasing their diversified revenue streams and robust financial performance.

Like many modern tech companies, a significant chunk of its budget went into employee benefits, making up 74% of its total expenditure. This figure saw a notable increase of 42.5%, reaching Rs 2,137 crore in FY23 compared to Rs 1,500 crore in FY22.

Moreover, the company’s spending on various operational aspects such as travel, legal matters, training, consulting, advertising, software licenses, and other miscellaneous expenses contributed to a 38% rise in overall costs, totaling Rs 2,873 crore in FY23, up from Rs 2,082 crore in FY22.

In the past fiscal year, there was a notable increase in the company’s spending on employee benefits and consulting services, which resulted in a significant drop in profits by 84.7%. Specifically, profits decreased from Rs 365 crore in FY22 to Rs 56 crore in FY23. During this period, the Return on Capital Employed (ROCE) was recorded at 6%, while the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins stood at 6.5%. Interestingly, for every rupee earned, the company expended Rs 0.82 in FY23.

This healthcare-centered company has everything in order when it comes to its operations, boasting a worldwide perspective, a wealth of experience (which is particularly crucial in the healthcare sector), prestigious clients, and a proven knack for flexibility. CitiusTech appears primed for a potential IPO in the future, either within India or beyond, and could also become a highly attractive acquisition target.

CitiusTech, a prominent health tech platform, achieved a substantial revenue milestone of $500 million in FY24, reflecting its robust growth and financial resilience. The company’s revenue surged by 40% to Rs 3,499 crore in FY23, primarily driven by software services. Despite significant expenditure increases on employee benefits and operations, leading to an 84.7% profit decline, CitiusTech maintained a 6% Return on Capital Employed. With a diversified revenue stream and operational efficiency, it stands poised for future opportunities like a potential IPO or acquisition, underlining its strong industry position and growth potential.