Narayana Hrudayalaya, a healthcare service provider, reported its results for Q1FY22 with an operating revenue of Rs. 860 Cr, an increase by 118.5% Y-o-Y compared to Q1FY21 and an increase by 2.63% Q-o-Q compared to Q4FY21
The EBITDA of the company decreased in the quarter to 15.55% from 16.88% in the previous quarter (Q4FY21). Comparison with the corresponding period of previous year (Q1FY21) is not possible because the stringent lockdowns in the country on account of the first wave of the pandemic
The PAT of the company in the quarter increased to Rs. 77.68 Cr compared to Rs. 69.99 Cr in the previous quarter – An increase by 11% Q-o-Q. The loss in the corresponding quarter of the previous year was Rs. 118.74 Cr
The performance of the company during the quarter was adversely effected due to the second Covid wave as the company’s hospitals were overwhelmed with Covid-19 patients causing a significant erosion in high margin elective procedures
Business Highlights
The company’s area of expertise – Cardiac sciences saw an all-time low revenue during the quarter
The company’s flagship heartcare hospital saw a degrowth of 44% during the quarter compared to previous quarter
There is a mild factor of cyclicality in Cayman Island operations. With the medical benefits to people starting in the calendar year, the first 2 quarters of the calendar year are the ones in which the company books more revenue
The company is currently the best equipped medical care on the Cayman Islands and intends to get bigger after the proposed expansion
The focus in Cayman Island operations at the moment is gaining market share and increasing the topline
Contribution of covid revenues during the quarter for the company was 23%
July 2021 was company’s highest ever India business in terms of revenue
Revenue from covid vaccinations during the quarter was Rs. 21.4 Cr
EBITDA from heart centre hospitals during the quarter was only 12.5% compared to 30% in a normal quarter
Future Outlook
The company is hoping for increase in elective surgeries to increase after opening up of the lockdown restrictions considerably after the second wave of covid
Cayman Island Health City expansion will be requiring a debt of around 50m USD which is 50% of the total expansion cost and the debt will be brought into the books gradually as and when disbursement happens over the next 18 months
Focus in the future will be to build technological aspects with regards to user experience. This will include better online assistance, making the mobile app better, etc.
Apart from Cayman Islands, the company’s major expansion plans in the future include Bangladesh where the management is in talks with certain players for taking over their operations
Domestically, expansions will be in the form of capacity increase mainly in Kolkata, Mysore and Raipur hospitals of the company and the company plans to add clinics in Bengaluru and Gurugram
Capex plans in this fiscal total to around Rs. 250 Cr
The focus of the company will remain high quality treatments and lower costs which has been the advantage of the company so far in comparison to its competitors
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