Narayen Hrudayalya Q3 concall highlights -
Current capacity -
Northern region - 4 hospitals, 1140 beds
Western region - 2 hospitals, 355 beds
South region - 6 hospitals, 2100 beds
Eastern region - 8 hospitals, 2050 beds
Cayman Islands - 1 hospital, 110 beds
Revenues at 1128 cr vs 960 cr yoy,up 17 pc
EBITDA - 254 cr vs 173 cr yoy,margins at 23 pc
Gross borrowings - 780 cr
Cash and cash equivalents - 560 cr
Enough space to fund massive capex lined up for next 2 yrs through a mix of borrowings, cash on books and internal accruals
Intend to spend Rs 1000 cr each on capex in FY 23,24 respectively. Rs 680 cr already spent in FY 23
Out of this, green field capex for FY 23,24 at Rs 200 cr each. Rest is brownfield andmaint. Capex earmarked for Cayman Islands at Rs 800 cr ( aprox )
03 hospitals ( Mumbai, Gurugram, Dharamshala ) are of recent vintage. These generated a revenue of Rs 110 cr, up 17 pc yoy, EBITDA at 9.3 pc. Gurugram, Dharamshala to reach 15 pc kind of EBITDA in 2-3 Qtrs
Most of Cayman capex towards new Oncology block and a new Hospital
New Onco block at Cayman Island to go live by Q1 FY 24. Expect to ramp up quickly as there is no radio based Onco therapy at Cayman
New capex of Rs 2000 ( over FY 23,24 ) will double the gross block
Gross margins improving continuously from Q1 to Q2 to Q3
Company believes, Q3 gross margins are sustainable
Govt scheme patients are about 20-22 pc of total Mix. Have been making representations to revise Govt rates as current rates were last revised long time back and are currently kind of unviable
Expect gradual increase in ARPOB in India business. Donât expect big jumps
Cayman Islands continues to be a tax free zone. So, no tax for new facility as well
Had Acquired an Ortho hospital in Bangalore for 200 cr in Oct last Yr. Already generating a EBITDA margin of 30 pc
Expect new Cayman hospital to be commissioned by Mid CY 24
Cayman EBITDA margins currently at 40 pc!!! Donât expect any margin dilution once radio Onco block kicks off in Apr 23
Disc: holding, biased