Kovai Medical Center and Hospital – Health and Wealth

Latest Credit Rating from CARE: Seems like they have reduced debt even further after SEP earning announcements.
202401150158_Kovai_Medical_Center_and_Hospital_Limited.pdf (181.5 KB)

Key highlights :

1. The total debt as on November 30, 2023, stood at ₹285.45 crore
2. KMCH is planning to undertake capex in the range of ₹250– 300 crore in the medium term funded through a combination of term debt and internal accruals against which sufficient accruals are expected to be maintained on the back of improving operational parameters. Hence, CARE Ratings anticipate that debt coverage matrix will not moderate and will remain comfortable in the medium term.
3. In recent years, KMCH has emerged as one of the most successful ‘Multi Organ Transplant Center’
   in the rest of Tamil Nadu, leading to an increasing number of referrals from Western Tamil Nadu and Kerala. It is recognized as a forerunner in transplant surgeries as well.
4. the Medical College, boasting a total of 750 seats, operates at full capacity, with
   an average annual fee of ₹14 lakh. CARE Ratings expects that the revenue contribution from the medical college will improve as
   the operations progress.
5. In H1FY24, the ARPOB of the main centre stood at ₹28,479 similarly, ARPOB for the other centres was between around ₹11,000 to ₹19,000, however, for the medical college hospital which added 238 beds in FY23 itself, stood at ₹3,388 which has impacted the overall average ARPOB level from the previous year.