ValuePickr Forum

Artemis Global Life Sciences

Hi bandlab1. Are you still tracking this company? Thank you.

Hi bandlab1, any update on Artemis post restructuring?

The company is constructing a new hospital block at its existing location in Gurgaon hospital to add 144 beds (the same is expected to become operational from Q1FY22) at an estimated cost of Rs.168.72 crore mainly pertaining to building and equipment. The project is proposed to be funded by a term loan of Rs.142.80 crore (sanctioned) and balance Rs.25.92 crore from internal accruals. Till June 30, 2020, the company had incurred cost of Rs. 70.54 cr funded by loan of Rs. 45.30 cr and Rs. 25.24 cr from internal accruals. The project is expected to generate sufficient revenues and profits to service the higher debt load. Timely completion of the project without any significant cost overrun would be critical for AMSL and will remain a key monitorable

Excerpt from the CARE rating report

transcript-of-the-16th-agm-september-23-2020.pdf (131.9 KB)

AGM Transcript of FY 20.

Artemis Medicare AR2021 summary.

  • Artemis Hospital / Artemis (a unit of Artemis Medicare Services Limited), Sector- 51, Gurugram- 122001 established in 2007, spread across 9 acres, is a 395 bed; state-of-the-art multi-speciality hospital located in Gurugram, India.
  • Artemis Hospital is the first Hospital in Gurugram which was accredited with JCI and NABH.
  • Artemis is the first Hospital in Gurugram to receive JCI accreditation, USA constantly for the third time.
  • Artemis Hospital is the first hospital in North India to be accredited with National Marrow Donor Program (NMDP), USA. Artemis Hospital is first to introduce Masimo technology based on Clinical Surveillance System and equipped with North India’s first M6 Cyber knife having successfully performed over 1000+ procedures.
  • For significant expansion of hospital infrastructure, construction of new tower adjacent to the hospital building has commenced which has potential to accommodate approximately 160 beds. The construction is in full swing and the same is expected to operationalize soon. (Company guided for completion in May 2021 in AGM 2020).
  • The Company’s Expansion projects also got delayed due to COVID-19 pandemic.
  • As a caution and care for expecting mothers, the Company had set up an extended COVID free birthing facility at a distance of around 2 kms from Hospital premises under the expert team of Obstetricians and Paediatricians
  • It is also pertinent to highlight that COVID-19 pandemic has resulted in disruption in regular business operations due to lockdown and travel bans (both Domestic and International) since March 2020. However, the Company has adopted various measures such as restructuring its costs, developing Digital platform to provide online consultation and homecare treatment etc. to ensure business continuity with minimal disruption and the Company believes that the COVID-19 pandemic will only have a short-term impact on its operations and after complete easing of lockdown and travel restrictions, the business is expected to return to normal.
  • Financials
    • The consolidated revenue achieved by your Company was ₹ 41,194.17 Lacs during FY 2020-21, as compared to ₹ 56,961.43 Lacs during the previous financial year. The consolidated EBIDTA was ₹ 3,873.65 Lacs for FY 2020-21 as compared to ₹ 6,605.76 Lacs for the previous financial year. On consolidated basis, your Company earned a Net Profit of ₹ 616.00 Lacs for FY 2020-21 as against ₹ 1,946.01 Lacs for the previous financial year.
    • Foreign Exchange Earnings 3,634.31
    • Rs. 30 cr capex during the year.
    • The borrowing cost capitalised during the year ended 31st March, 2021 was Rs. 142.37 Lacs. (31st March, 2020 : 121.00 Lacs).
    • Related party transaction: Purchase of medicines through Premedium Pharmaceuticals Pvt Ltd of Rs. 42.12 cr (Rs. 47.72 cr in Fy20).
    • Revenue by geography
      India: Rs. 340.51 cr (Rs. 365.80 cr)
      Outside India: Rs. 61.54 cr (Rs. 197.28 cr)
      Revenue Contribution
      Oncology - 22% Neurology - 16% Orthopaedic - 12% Cardiac Sciences - 11% Medicine & Critical Care - 6% Nephrology - 5% General Surgery - 4% Obs & Gynae - 3% Gastroenterology - 3% Liver transplant - 2% Others - 16%
5 Likes

scuttlebutt ranks it decently specially in knee and general surgery like stone etc. Its crowded one. So post covid , utilisation should not be an issue for the incremental beds coming in.
Since co doesnt have plan of expansion this could be cash cow or might sold to another chain and that would be the win situation for investors. Margin should see good jump from fy23 again on post covid and post expansion. On the revenue per bed, mcap/bed, etc this looks cheaper.
biased with decent allocation in portfolio

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stock circuit up on news of board meeting for split and q results. split would increase liquidity . for me q results and commentary on new capacity on-boarding, cash flow would be point to look at.

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Q122 results looks decent on following point:

  1. even with covid wave2 , revenue on QoQ is almost same. must be some incremental revenue from new beds.
  2. finance cost under control
  3. scope of operational leverage while still a 30 pe something stock.

bullish since

  1. hospital stock which is well established in metro
  2. recent capex went live which increased capacity by. almost 40%.
  3. available cheaper at mcap/bed parameter
  4. promoter doesnt have plan for starting chain of hospital so either it would be acquired by another hospital chain or becomes cash cow.

result https://www.bseindia.com/xml-data/corpfiling/AttachLive/2d496789-46b6-400a-8d1c-267e079c3a7b.pdf

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Just to correct. The new capex has not gone live. It will be done towards Q3 FY 22. Owing to covid the plan was delayed.

Thanks Amit. I am pleasantly surprised to see revenue holding up in spite of 4 bad weeks during 2nd wave.