Ranvir’s Portfolio

**Narayan Hrudalaya – **

Q4 and FY 24 results and concall updates –

Total hospitals –

India Hospitals –

South – 5 hospitals, 3 heart centers, 11 clinics

East – 7 hospitals, 4 clinics, 01 dialysis center

North – 4 hospitals, 01 clinic

West – 02 hospitals

Cayman Islands – 01 Hospital

Total – 19 hospitals, 16 clinics, 01 dialysis center

Total bed capacity @ 6074

FY 24 payor Mix –

Cash / Walk in – 43 pc
Insured – 27 pc
Govt schemes – 21 pc
International – 9 pc

Geographical Mix of revenues ( India business ) –

Bengaluru – 37 pc, grew by 7 pc
Southern peripheral – 6 pc, grew by 14 pc
Kolkata – 27 pc, grew by 6 pc
Eastern peripheral – 11 pc, grew by 5 pc
West – 6 pc, grew by 14 pc
North – 13 pc, grew by 3 pc

FY 24 financial outcomes –

Revenues – 5018 vs 4525 cr
EBITDA – 1152 vs 987 cr ( margins @ 23 vs 22 pc )
India EBITDA @ 778 cr
Cayman Islands EBITDA @ 500 cr
PAT – 790 vs 607 cr

Q4 financial outcomes –

Revenues – 1279 vs 1222 cr
EBITDA – 295 vs 276 cr
PAT – 191 vs 173 cr

Avg revenue / In-patient @ Cayman – Rs 25.7 lakh
Avg revenue / In-patient in India – 1.23 lakh

Cash on books @ 1258 cr
Gross Debt @ 1420 cr

Capex for FY 24 @ 900 cr

Hopeful of commissioning of a new Hospital in Cayman Islands in Aug 24

As more capacity gets added by the company at Cayman, the revenue per patient shall continue to moderate as the company shall be able to treat lesser complex cases and that would result in higher volumes. As this facility ramps up, it can be a nice trigger for earnings expansion

Company has existing land parcels in Bengaluru and has also acquired additional land parcels in Bengaluru and Kolkata for Greenfield capex. Most of the this Greenfield capex should begin in Q3 FY 25 and should get commissioned in about 3 yrs time

In FY 23 and FY 24, there was a lot of pent up demand and backlog for surgical work (post COVID). Hence the company is guiding for a mild – moderate growth in FY 25 ( in India business )

Company is likely to take on additional debt of 1200-1400 cr for the Greenfield expansions. Company may not use the cash on books as it is parked in the Cayman subsidiary and bringing it to India will not be tax efficient.Company is looking at overseas opportunities to deploy this cash. In the absence of such opportunities, company will take a 20 pc kind of Tax hit and bring the cash back

Despite the capacity constraints in the Domestic business and heavy lineup of Greenfield capex, company is guiding for low double digit growth rates ( not too sure if this is achievable… personal opinion )

NIL bed additions lined up for India business in FY 25

Company is planning to add – 20/30 clinics / yr for next 2-3 yrs to debottleneck the OPD work. These clinics are capital light ( investment required @ about 1-2 cr / clinic but it helps achieve much better patient throughput )

Disc: planing to add ( due correction in valuations ), growth in short term may be an issue, biased, not SEBI registered