Mylab is a healthcare and diagnostic startup that announced a sudden decline in operational revenue  to under Rs 100 crore in its FY23 report. The company had a huge profit during the pandemic when  COVID-related testing and diagnosis services skyrocketed. The startup faced a huge loss after more  than 64 percent of the world coped with the pandemic and returned to a normal lifestyle.  

Entrackr mentioned in its report that the firm had a sizable loss in FY23 compared to the previous fiscal  year. The startup had a 100 times increase in its growth to Rs 825 crore in FY21, while the number  went down to Rs 95 crore in FY23. The company saw a downward graph from FY22 and has been at a  loss since then. The operating revenue for the last fiscal year went down by 68.4 percent to Rs 20.71  crore. MyLabs creates and sells diagnostic kits and products for clinical diagnostics. This healthcare  company develops innovative solutions in therapy, diagnostics, and medical devices. The sale of  diagnostic kits contributes to more than 90 percent of operating revenue and is the major source of  income for FY23.  

The manufacturing expenses of these diagnostic kits take up to 27 percent of the total operating  expenses. The dropped number of deals led to decline in the manufacturing charges by 60 percent to  Rs 50 crore for this financial year. The total expenditure of the firm crossed Rs 185 crore in FY23. The  factors contributing to these expenses include employee benefits, advertising, legal fees, royalties, and  other expenses. The startup reported a loss of Rs 47 crore for this fiscal year.  

The operating expenditure and decline in scale led to a huge loss for the first time in the last three  years. The EBITDA margin also went to negative and stood at -24.19% while the ROCE also decreased  to -18 percent. In the past few months, many doubts have been raised on the credibility of test results  that are analyzed after picking it from home. MyLabs may introduce a new service model to tackle  these problems and offer better diagnoses.  

Conclusion: 

Mylab reports a loss and sudden decline in operational revenue under Rs 100 crore, marking a 68%  decline from the previous fiscal year. The company earned a huge profit during the pandemic when  COVID-related testing and diagnosis services skyrocketed. The company started facing losses after  more than 64 percent of the world returned to a normal lifestyle. MyLab offers various diagnostic  solutions and healthcare kits. The healthcare sector is showing promising opportunities for these  startups and Mylab’s use of technology to enhance diagnosis productivity might have a positive impact  on the Healthcare sector. While facing losses, the company focuses on improving its service model and  offering more innovative healthcare solutions, positioning it well in the healthcare diagnostic market.  The sale of diagnostic kits contributes to more than 90 percent of operating revenue and is the major  source of income for FY23.