I was really happy about the growth in revenue and profit in the last few quarters but was concerned about the cash flow and the very slow reduction in debt. So I was going through the AR to understand the cash out flow better.
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There is significant addition to land, plant and equipment.
54.90 crores were spent on land and 24.52 crores on plant and equipment. Out of which 19.57 crores were spent on purchase of medical equipment alone. Land was purchased in an auction.
Interest capitalized is NIL this year.
Going forward, I think the investment in medical equipment will be high as the chairman has indicated in his speech about having cath labs and MRI scanners at its various satellite centers. Investment in equipment and technology absorption is a good thing and can be revenue accretive. It will be good to know how they intend to use the land. I am not going into CWIP as it is already mentioned in the previous post( mostly buildings).
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