wave stated only in April
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This table makes it very clear that the Average revenue per patient is lowest for Kovai. This also means that there is huge potential for this to go up. Hopefully, with the addition of new equipments and more and more complex surgeries this number will go up in the coming years.
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For a business what matters is RoCE and RoE, isânt? Both of these seems to be good for them. So we need to understand what differentiating model, cost structure they have and how it will shape up going forward.
Disc: invested in non core portfolio
KMCH is strong in their local market. So, not sure we can compare KMCH vs Apollo, Narayana Hrudalaya as opposed to say PSG Hospitals, Sri Ramakrishna Medical Hospital, GKNM, Royal Care Hospital and maybe Ganga Hospitals.
Also, another hospital to be setup at 27 acres 30 minutes away from the centre of the city will cost a lot more at present real estate rates. As others have said, they are not only one of the best but also one of the most expensive options in the city.
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Considering the fact that Dr. Nalla G. Palaniswamiâs Gross Compensation is likely to be close to Rs. 4 Crores in FY21, a 16% incentive in terms of a one-time treatment during a Pandemic isnât too questionable in my opinion.
But very good point raised nonetheless. I hope we either get an explanation in the Annual Report or someone raises it in the Annual General Meeting.
Do you have proof of your claims?
I understand that KMCH has regular Related Party Transactions with Purani Hospital Supplies. Related Party Transactions are always iffy. But how much would regular Hospital Supplies cost and how did you come to the conclusion that the entirety of the Related Party Transaction is being âsiphonedâ?
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I am really getting confused between HCG and KOVAI. Both of them look very interesting and have niche offerings.
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Kovai Medical AR21 notes
- Kovai Medical Center and Hospital Limited (KMCH) was incorporated under Companies Act, 1956 in 1985 and started its commercial operation in June 1990, with a capacity of 200 Bed Hospital in the outskirts of Coimbatore. Today it is grown as a 1500 bed multi-locational, multi-disciplinary Super specialty hospital.
- The Main Center and the Medical College Hospital is located in Coimbatore (around 1 kilometer from Coimbatore Airport).
- Bed capacity at 1629 bed as on 31.03.2021 compared to 1390 bed as on 31.03.2020.
- KMCH has 24 operation theaters.
- The hospital has over 135 internationally renowned full time clinicians and over 225 postgraduate medical professionals assisting them. With more than 4300 Technicians, paramedical, patient care and administrative staff the hospital delivers complete care to the patients.
- KMCH has recently commenced KMCH Center for Advanced Lung Diseases and Transplantation with the induction of two senior pulmonologists.
- The cornerstones of KMCH legacy are its unstinting focus on clinical excellence, affordable costs, adoption of technology and academics.
- We strictly practice the âPatientâs Centricâ culture in our approach. All our systems, people, process are geared towards delivering total care to the patients.
- KMCH Medical College admitted the second batch of students amidst the pandemic. As in the last year, all the seats were quickly mopped up without a single vacancy emphasizing the trust in KMCH. Infrastructure is complete and the offerings are truly of international standards. The Library, Lecture Halls and Wards are way beyond the standards expected by the regulators. We are convinced that within the next decade, KMCH Medical College will become one of the best centers for education in the country.
- The country witnessed a severe second wave in early FY 2021-22, the higher number of COVID-19 cases has led the Company to allocate almost 50% of its operational bed capacity for COVID-19 treatment at the peak of the second wave in mid-April to June.
- More than 600 Beds across various centers have been allocated for COVID-19 Management especially in the second wave.
- Financials
- The income from operations for the financial year 2020-21 was âš 69,036.18 Lakhs registering a decrease of 3 % over the previous year income of âš 71,172.88 Lakhs. Earnings before interest, tax, depreciation and amortization (EBITDA) were âš 20,506.99 Lakhs registering a growth of 14.79% over the previous year EBITDA of âš 17,865.07 Lakhs. Profit after tax (PAT) for the year was âš 7,768.54 Lakhs over the PAT of âš 9,458.71 Lakhs Year 2019-20.
- Good increase in Average Revenue per Bed from Rs. 16267 in FY20 to Rs. 21574 in FY21.
- During the year ended FY 21, Cost of Medicines and Hospital Consumables decreased from âš 20,479.55 Lakhs in FY 20 to âš 19,355.40 Lakhs in FY 21. Decrease is primarily due to reduction in Surgeries due to COVID-19.
- Cash and equivalents of Rs. 155 cr as on 31.03.2021.
- Debt of Rs. 582 cr as on 31.03.2021.
- Operational Excellence of Hospital
- We are proud to inform that your Hospital KMCH is one of the few in the country which had several patients who survived even after weeks on ECMO (Extracorporeal Membrane Oxygenation Equipment), which is an extremely difficult and arduous task considering the fact that several complications can take place as the function of the lung is completely taken over by a machine.
- KMCH successfully treated five patients with novel pacemaker technology called Conduction System Pacing.
- Four-month old premature baby with a large abnormal sized head and neurological deficits was referred to KMCH for expert management. Subsequent to the procedure the patientâs neurological status improved remarkably, with near normal eye and limb movements to the delight of the parents.
- The Vein Center which is dedicated towards the treatment of varicose veins introduced a minimally invasive procedure called the VenaSeal, where a medical grade glue is injected into the abnormally dilated veins of the leg. This procedure has several advantages when compared to conventional surgery and the patient can get back to normal activity the very next day.
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Received a PDF of the Chairmanâs AGM speech on email from the CS. Surprised, both because theyâve decided to share this and also because the speech itself doesnât give too many details (Itâs similar to the MDâs address in the Annual Report).
KMCH Chairmanâs Speech - AGM 16.09.2021.pdf (698.7 KB)
It would be nice if they also sent a transcript of the AGMâs Q&A session for the benefit of those Shareholders unable to attend the AGM in person.
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Many cos now share recording of agm.
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Is there any update on Kovai Q2 Financial results? Couldnât find details in BSE and Screener.
They have postponed it as there was a fire in the hospital. They did post an announcement on BSE, pl check the filings.
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Thanks @whoisgaurav, I was filtering by results so missed it.
They have got exception until 9th Dec. Pasting filing link for others quick ref: https://www.bseindia.com/xml-data/corpfiling/AttachHis/fc8fde1e-15c1-46ae-a1a1-74a820a81cc3.pdf
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Anything to worry??
I would keep this point in mind but not necessarily worry about it.
p.s exited today.
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very informative article sir, with due respect its for next year, i think this situation arise due to ukraine student crisis, if this happen next year than surely i ll review my thesis again, in 2024 election also might be happen this, but in my opinion private medical college let its happen easily.i m biased and may wrong.
disc very low level
no transaction more than 6 month
not sebi register.
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