Concall
In May 2024, the company’s financial performance showcased impressive growth. Revenue for the second half and the entire fiscal year 2024 increased by 42% and 59%, respectively. Hospital services alone saw a revenue surge of 122%. The EBITDA for FY24 grew by 102%, achieving a margin of 29%, and the profit after tax rose by 105% to INR 69 crores. By the end of FY24, the company had a net cash equivalent of INR 62 crores. Additionally, the return on equity (ROE) on ex-cash return on capital (ROC) was 36%, while the ex-ROC stood at 80%.
Looking ahead, the company is targeting a revenue of approximately INR 450 crores for the next year. There are plans to increase the bed count to 1800 by adding 500 new beds, with an ambitious goal to double this count to 3000 in the next three years and exceed 4000 beds within five years. A key focus will be on increasing occupancy levels to drive profit growth.
The operational strategy involves adopting a patient-centric approach to boost occupancy rates. The company will shift its focus from the COD business to clinic and hospital sales, aiming for better patient outcomes. To ensure quality service and retain doctors, ESOPs and incentives will be offered. Emphasis will also be placed on patient education and well-being to build trust and loyalty.
In terms of product and revenue insights, the gross margin in the medicine business stands at approximately 85%, with a net margin of 22% in the last year. The company plans to launch new OTC products to boost revenue and is targeting a profit after tax (PAT) of more than 25% next year, thanks to effective cost management and revenue growth strategies.
The company faces the challenge of increasing occupancy rates to enhance profitability but sees significant opportunities in the untapped market in India to expand its bed count and market presence. There is optimism about future growth potential, with aspirations to become the leading Ayurvedic healthcare company in India.
Positioned uniquely in the industry, the company focuses on treatment rather than wellness, leveraging its Ayurvedic expertise and quality medicines to differentiate from competitors. The expansion of the bed count will be gradual to ensure sustainable growth.
| Subscribe To Our Free Newsletter |
