Notes from screener for Q32024 conference call:
Financial Performance:
- Revenue growth of 21% year-on-year
- Profit after tax increased by 39%
- EBITDA of INR464 million
- Profit after tax of INR295 million
- Reduction in finance costs by 97% year-over-year
Operational Updates:
- Introduction of robotic surgeries with Da Vinci X and Stryker’s Mako robots
- Expansion of transplant services to include liver transplants
- Acquisition of Asian Fidelis Hospital in Faridabad, Delhi NCR
- Plans for bed capacity expansion in Noida and Greater Noida hospitals
- Focus on enhancing specialty mix and expanding oncology services
- Development of high-end transplant programs and oncology services
- Doctor attrition controlled, less than 10%
- Strategic initiatives to explore organic and inorganic growth opportunities
Future Growth Strategies:
- Plans for future growth through medical tourism in markets like Bangladesh, CIS countries, Iraq, and Africa
- Expectation of EBITDA breakeven for Asian Fidelis Hospital within two years
- Expecting sizable turnover in the second year with solid EBITDA margins
- Focus on operational efficiency and adaptability for margin expansion
Challenges and Mitigation:
- Explanation for decline in IPD and OPD volumes due to extended winter season and flu season in the region
- Receivables at 100 days, government payments sluggish
- Jhansi occupancy impacted by seasonal dip, new management team in place
Overall Outlook:
- Q4 results expected to be better
- Meeting after Q4 results are out to discuss further strategies
- Emphasis on delivering good results and continued growth in the future.
D: Invested
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