2024 Feb – Q3FY24 Concall:
Floods in Chennai & Strategic decision of coming out of ‘shop-in-shop’ model led to a scale-back of operations in M S Ramaiah Bengaluru, affected revenue growth by 2-3% and also EBITDA by 30 bps for the quarter
Decline in Q-o-Q PAT is on account of depreciation for acquisitions of Nagpur and Indore
Q3 is generally a seasonally muted quarter
Overall ARPROB is increased to 42.8K INR, a15% Y-o-Y growth
Centers of excellence delivers 30% margins and ARPOB is above 70K INR
Increased 59 beds during Q3
Current total no. beds: 2000, occupancy at 65-70%
Adding a new 100-bedded hospital, a comprehensive cancer care in North Bangalore, Capital outlay about 90Crs, expected to be operational in 15-18 months
Going to add 350 beds over next 3 yrs with capex of 130 Cr (48Cr is already spent)
Net debt stood at INR367 crores as on Dec’23. Very comfortable with the current debt levels and project a better cash flow in the coming quarter
Decided to divest Milann division, will be done at max. value possible, more info to come
No comments made on CVC exit plans (no denial, at least)
Moving to a new facility in Ahmedabad due to capacity constraints
May not achieve earlier guidance of 20% Ebidta margin by Q1, Q2 FY25, due to drawdown coming from Indore acquisition, Whitefield project being functional and also increasing Govt. functions.
Generally, need for expansion arises once occupancy reaches late 70%, to keep remaining beds for day care.
Expecting ARPOB to grow at 5-7% Y-o-Y in coming years, lever are combination of high-end treatment, faster turnaround, lower ALOS.
Aiming to grow higher than market which is at 10-11%
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