EBITDA for Q2 FY24 has been registered at Rs 864 million
HealthCare Global Enterprises (HCG) announced its financial results for the quarter (Q2) and half year ended FY24.
Highlights for quarter ended September 30, 2023
§ Consolidated Income from Operations (Revenue) was Rs 4,869 million as compared to Rs 4,200 million in the corresponding quarter of the previous year, reflecting a year-on-year growth of 15.9 per cent
§ Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (Adjusted EBITDA) was Rs 864 million, as compared to Rs 760 million in the corresponding quarter of the previous year, a growth of 13.8 per cent year-on-year
§ Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (Reported EBITDA), was Rs 846 million as compared to Rs 747 million in the corresponding quarter of the previous year, a growth of 13.3 per cent year-on-year
§ EBITDA for Existing centres was Rs 832 million, a growth of 7 per cent year-on-year
§ EBITDA from new centres was Rs 122 million, as compared to Rs 99 million in the corresponding quarter of the previous year, a growth of 23 per cent
§ Consolidated Profit after Taxes and Minority Interest (PAT) of Rs 136 million, as compared to Rs 74 million in the corresponding quarter of the previous year, a growth of 83.9 per cent.
Business updates for Q2 FY24
- Overall ARPOB stood at Rs 42,054 vs. Rs 36,914 in Q2 FY23
- Overall AOR stood at 63.6 per cent vs. 66.4 per cent in Q2 FY23
- RoCE (Q2FY24 Annualized)
- RoCE for Mature centers stood at 21.2 per cent vs. 21.8 per cent
- in Q2FY23. RoCE pre-corporate allocations stands at 25.5 per cent RoCE for Emerging centres stood at -3.9% vs. -4.3 per cent in Q2FY23. RoCE pre-corporate allocations stands at -0.8 per cent
- Several regions delivered high double-digit revenue growth on yearly basis
- Markets like Kolkata and Mumbai grew by 42 per cent and 41 per cent YoY respectively
- Nagpur, Ranchi & Rajkot grew by 60 per cent, 48 per cent and 38 per cent YoY respectively
- Our International operations grew at a robust growth rate of 175 per cent YoY
- Added 3 New LINAC machines
- Added 3 Robotics surgery machines in Mumbai, Kolkata and Baroda
Dr BS Ajaikumar, Executive Chairman, HealthCare Global Enterprises, said, “Our performance for the quarter is yet another testimony of our consistent strides in moving up the value chain of outcome-driven cancer care. Led by our unique approach to treatment, path breaking clinical excellence, and intelligent technology adoption, we have deepened our understanding of the essence and progression of cancer and how it affects every patient differently. During the year, HCG Cancer Hospital Bengaluru initiated a ground-breaking pilot study for head and neck cancer patients with Low Dose Immunotherapy towards providing a cost-effective and safer therapy option. This study has the potential to be a game-changer in the sphere of head and neck cancer treatment and reflects HCG’s commitment to advancing research and academia in India. On the corporate front, our acquisition of SRJ CBCC Cancer Hospital in Indore is another cherished milestone in our expanding cancer care footprint across India. Through our unique hub and spoke model, we will continue to adopt a holistic approach to cancer care to continuously improve patient outcomes and quality of life. Today, cancer is fast becoming a chronic disease, and a sea change has occurred in the manner in which we stage cancer, how we adopt a multi-disciplinary approach to cancer care, and how we apply genomics and molecular diagnostics in this era of precision medicine to provide the right treatment the first time. Understanding the genomic correlation of response and resistance is helping us stratify patients and avoid the perils of under/over treatment.”
Raj Gore, CEO, HealthCare Global Enterprises, added, “HCG’s unwavering commitment to expand patient outreach, bolstering capacity, and maximising utilisation, has resulted in remarkable performance for the 2nd quarter of fiscal year 2024. Our revenues witnessed a 16 per cent growth on a year-on-year and stood at Rs 486 crores. Additionally, our EBIDTA (excluding ESOP cost) amounted to Rs 86 crore an increase of 14 per cent Y-o-Y with margins standing at 17.8 per cent. We have embarked on our inorganic journey in the quarter gone by. After successful consummation of Nagpur and Indore hospital acquisition, we have initiated the process of integrating systems, processes and operations to be carried out the HCG way in these hospitals with an objective to enhance and extend our cancer care services throughout the state of Madhya Pradesh, meeting the urgent need for comprehensive, high-quality healthcare in the region. We are optimistic of revenue uptick and margin expansion on the back of operational efficiencies, synergies and patient volume uptick on account of the promise brand HCG carries for cancer care across the country. As we look forward, our vision extends beyond mere treatment; it’s about rewriting the narrative of cancer, making quality care accessible to all, irrespective of the challenges they face.”
