Yatharth Hospital & Trauma Care Services Limited

Kind of “Yes” but need not to jump on to the conclusions.

1 Like

Q4 2024 Yatharth Hospital conference call

Robotic surgery are integrated seamlessly.

One of big 6 audit firm will be appointed as auditors.

Case mix shift to specialty treatment will lead to ARPOB growth.

Upcoming Jewar Airport in Noida ( planned to be largest in Asia) will help to draw international patients. Set up dedicated marketing professional to attract international patience. Dedicated floor and lounge under renovation. 150 kidney transfer in 1.5 years, 90% are international. They will contribute to double digit in overall revenue.

Industry leading growth in profitability and revenue.

Confident of maintain revenue and EBIDTA growth 29% and 35% in upcoming years.

Payer mix not in focus. Focus on increasing ARPOB.

Govt rates are 20 to 25% rates are lesser then govt. business. For oncology govt rates are not such big, it is less.

Govt business will come down due to international patience ramp up.

Annual rate hike is 6 to 8% rate hike for cash. For insurance it is one to one negotiation with insurance companies and it is for 2 years for govt insurance, for private depends on 1 to 2 years.

International Patients:

Upcoming Jewar Airport in Noida ( planned to be largest in Asia) will help to draw international patients. Set up dedicated marketing professional to attract international patience. Dedicated floor and lounge under renovation. 150 kidney transfer in 1.5 years, 90% are international. They will contribute to double digit in overall revenue.

Jhansi Hospital:

Jhansi Hospital at 34% Occupancy in Q42024.

ARPOB decreased due to government business. It will be in increasing trend in upcoming years.

Faridabad Hospital:

Waiting for two machines then cardiac department will be running.

Occupancy can be much earlier then Jhansi in terms of occupancy.

Expansion Strategy:

Organic and in organic.

Asian Fidelis Hospital renamed as Yatharth Hospital and start commercial operation from 12 May 2024. 116cr to buy and 34 cr for machinery. Little capex is pending, should be ramp up very well. Faridabad is huge potential.

One hospital to acquire each year from FY24 to FY26. It will be mix of internal accruals and debt. Company will be still net debt free.

It will be primarily in North India. CAPEX of 60 to 70 lacs per bed similar to Asian Fidelis hospital.

Receivables:

Increase in Govt. Business. Now it is 40%. May be due to election or Q4, will be normalized soon. Q1 will have significant reduction in debtors.

Coming two quarters will see drop in receivables.

Income tax:

Oct 2023 as filed, money is still with company for 76 cr. Expect in this FY money will be back to company. It do not affect working capital. Investigation do not found suspicious, it is frozen as per procedure.

Concall Transcript:

In nutshell, If company demonstrate revenue growth with considerable improvement in receivable will be positive.
D: Invested

5 Likes

They have ratings from CARE as opposed to CRISIL now so when rating agencies are switched they publish this note. Yatharth has issuer rating from CARE. Term loan rating was not required because the paid it off using IPO money. They have a term loan now which they may likely get rated from CARE.

1 Like

I personally did not like the fact that no disclosure about 70crs being frozen was made to exchanges. Also money being frozen is not a routine thing. Exited for now.

Will re-enter if it tanks further to 370 levels.

1 Like

I heard from a friend who’s a surgeon at Yatharth, some issues going on within the management.

Disc - Invested

1 Like

Ohh… then it is even more worrying. isn’t it?? I mean changing of credit rating agencies

Well it depends right! CARE is also a well recognized firm so I would not be overly concerned. Yes, i think it might have been cheaper to appoint CARE than CRISIL. So i think the decision is more cost related than anything else. The company has active conversations with institutional investors and DII are invested which is usually a good sign to judge any corporate CG issues.

Is it normal for hospitals to have such high receivables particularly from insurances and TPAs.

Also why are they piling up reserves but not
distributing a single penny as dividend. They have been growing quite well so why not distribute some dividend as well like their other peers

To answer your first question, it depends. It depends on the type of patients a hospital is catering to. I case of Yatharth, they have a lot of govt. and scheme patients which is why if you see even after so high revenues and profits and margins, the cashflows are not impressive. This is because they have a lot of receivables from their scheme patients. As correctly pointed out by @Worldlywiseinvestors in a recent videos, earnings might be there but quality of earnings is more important.
On reserves, I guess distributing the cashflows at this stage might not be a good decision. They need to grow, invest in newer hospitals.
Disclosure.- Not invested…

1 Like