Medanta operator Global Health reports 73.75% YoY rise in net profit, shares rally

Medanta hospital chain operator Global Health experienced a more than 2 per cent increase in its shares during early trading on August 11. This surge in share value was driven by investor enthusiasm over the impressive performance of the company in the April-June quarter.

The hospital chain announced a remarkable 73.75 per cent year-on-year surge in its consolidated net profit for the June quarter, reaching Rs 102.01 crore. The company also achieved robust growth in revenue, with a 25.28 per cent year-on-year jump to Rs 773 crore.

The proportion of revenue generated by developing hospitals (Medanta Lucknow and Patna) rose to 28.9 per cent, marking an increase from the previous year's figure of 23.4 per cent. Notably, revenue from international patients experienced a substantial 45 per cent increase, amounting to Rs 47.7 crore, attributable to heightened patient volume and improved realisation.

The Average Revenue Per Occupied Bed (ARPOB), a pivotal metric for measuring growth, demonstrated a 7.1 per cent year-on-year growth, reaching Rs 63,148.

By 9:19 am, Global Health shares were being traded at Rs 701.05 on the National Stock Exchange, signifying a 1.6 per cent rise from the preceding close.

The company's operational performance also exhibited improvement, evidenced by an expansion in the EBITDA margin from 22.6 per cent in the year-ago quarter to 25.1 per cent.

During the first quarter, the hospital chain added 28 new beds to its Patna facility, raising the total bed capacity of the group to 2,725, up from 2,697 in the previous quarter.

In a strategic collaboration with DLF, Global Health unveiled plans to establish a 400-bed super-speciality hospital in Delhi, aiming to enhance its presence in the National Capital Region. This venture will bring the total bed count to approximately 2,400 in the region. Under this arrangement, a new company will be formed with an equal 50-50 contribution from Global Health and DLF. While Medanta will oversee the hospital's operations, DLF will serve as a strategic investor. The hospital is poised to offer advanced medical and surgical interventions across more than 20 specialities, including a comprehensive cancer care unit.

Furthermore, the company has charted an ambitious trajectory for growth by intending to add around 800-1,300 beds over the next two to three years. Notably, 770 beds, constituting 60 per cent of the new capacity, will be incorporated into existing hospitals, thereby optimising capital expenditure per bed.

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