Narayen Hrudayalaya Q4 concall highlights -
Consolidated Q4 financials -
Revenues - 1222 vs 941 cr. India contibution - 977 cr, Caymen islands - 232 cr
EBITDA - 276 vs 172 cr, Margins at 23 vs 18 pc. India margins at 19 pc
NP - 173 vs 69 cr !!!
ROCE @ 28 pc - Industry leading
India business zone wise revenue contribution for FY 23 -
Bengaluru- 37 pc
South Peripheral - 6 pc
Kolkata - 27 pc
East Peripheral - 10 pc
West - 6 pc
North - 14 pc
Have decided to set up a Health Insurance subsidiary to provide affordable healthcare to patients
Mumbai Hospital has turned EBITDA positive in Q4 (+ 2.8 pc). Gurugram hospital’s EBITDA margins were (+3 pc). Dharamshila (Delhi) Hospitals’s Q4 EBITDA margins were 16pc. These three r relatively newer hospitals
Aiming for Gurugram and Mumbai to reach 15-17 pc margins in 3-5 yrs
Cayman Island Hospital’s new Onco block has gone live in Q1
Along with health insurance, also going to set up primary care centres in various residential areas. These are capex light centres
Capex for FY24- aprox 150 cr to acquire land parcel in Kolkata for Greenfield expansion
Plus another aprox 900 cr earmarked for capex in FY 24. 700 cr shall be from bank funding, rest from internal accruals. Debt/EBITDA to remain in comfortable zone
Cayman Subsidiary’s cash to continue to stay in Cayman. Company will work out a capex plan for Cayman separately
India business continues to have about 200 cr plus cash surplus
Cayman business running at 40 pc + EBITDA. New Onco block won’t be margin dilutive. There will be some margin dilution once the new Cayman Bay hospital comes online in Q1 next yr. Its a 50-55 bed facility
In FY 24, company heading into an election year. There may be some margin pressure and increase in receivables due company’s exposure to Govt business
International patients count at 8.5 pc of total vs 6.5 pc yoy
Cost of Debt ( for expansion ) should be around 8-8.5 pc
Bed additions in India will only happen in FY 25. In the mean time, working to improve throughput and efficiencies. There is a lot of space for improvement in these areas. These improvements will get reflected in ROCE, EBITDA, ARPOBs etc
Kolkata Greenfield expansion decided upon after exhausting all other options. In Bengaluru, there is no such problem as ample land is avlb in near vicinity
Disc: holding from lower levels, core portfolio holding