Particulars (Rs Crores) | Q3FY24 | Q3FY23 | YoY | Q2FY24 | QoQ |
---|---|---|---|---|---|
Revenue | 855.00 | 706.00 | 21.00% | 865.00 | -1.00% |
EBITDA | 234.00 | 172.00 | 36.00% | 234.00 | 0.00% |
EBITDA Margin (%) | 27.39% | 24.00% | 305 bps | 27.00% | 37 bps |
PAT | 124.00 | 81.00 | 53.00% | 125.00 | -1.00% |
Source: Company Filings; StockAxis Research
Q3FY24 Financial Performance
Global Health Limited delivered healthy earnings growth for the quarter ended Q3FY24.
Consolidated revenue increased by 21% YoY to Rs 855 Crores as against Rs.706 Crores
for the same quarter of the previous fiscal year, primarily driven by an increase
in patient admissions which saw an increase of 13% YoY to 39,743 in Q3FY24 and the
realization growth at the Gurugram unit. Out-patient volume increased by 20% to
662,434. Consolidated EBITDA surged by 36% YoY to Rs 234 Crores, whereas EBITDA
margin expanded by 305 bps and stood at 27.4%, led by operating leverage benefits
and lower employee costs. Consolidated PAT for the quarter surged by 53% YoY to
Rs 123 Crores, and PAT margins stood at 14% on account of better core operation
and higher other income. ARPOB (Rs. 60,571- growth of 4% YoY) and Occupancy levels
(64% in Q3FY24 vs 59% in Q3FY23) increased by 500 bps due to volume growth in Lucknow
and Patna hospitals.
Matured and developing hospitals reported strong revenue growth of 17% and 33% in Q3FY24. Average Occupied bed days increased by 15% YoY, representing an average occupancy of 64% in Q3 FY24. In-patient count increased by 13% YoY and Out-patient count increased by 20% y-o-y in Q3 FY24. ARPOB grew by 4% YoY to Rs 60,571 primarily driven by an increase in realisation at the Gurugram unit.
Developing hospital's revenue share increased from 29% in Q3 FY23 to 32% in Q3 FY24 amounting to Rs 274 Crores. Developing Hospital EBITDA share increased from 37% in Q3 FY23 to 41% in Q3 FY24 amounting to Rs. 97 Crores. Matured hospitals also registered strong revenue growth of 17% YoY and EBITDA growth of 37% YoY amounting to Rs. 588 Crores and Rs 148 Crores respectively.
Revenue from international patients increased by 6% YoY to Rs. 47 Crores, driven by increased volume and realization. OPD pharmacy business continues to register strong growth. Revenue increased by 28% YoY from Rs. 22 Crores in Q3 FY23 to Rs. 29 Crores in Q3 FY24.
Key Conference Call Takeaways
Average Revenue Per Operating Bed (ARPOB) - In 3QFY24, ARPOB grew 4% YoY to INR60k, primarily driven by an increase in volumes, occupied bed days, and realizations at the Gurugram facility.
International Patients - Revenue from international patients increased 6% YoY to Rs.47 cr, driven by higher volumes and realization.
Other Highlights
Management Guidance
Global Health delivered robust earnings growth for the quarter ended Q3FY24. We believe that with strong demand driving business prospects in Lucknow/ Patna and sustained improvements in the performance of mature hospitals, medanta remains in a good position to deliver consistent growth in earnings on account of the commissioning of new hospitals and the addition of doctors to meet the healthy demand in the respective markets. We believe that Medanta’s developing hospital and new additions are going to provide a long runway for growth.
Medanta plans to add 50 beds in Patna and 120-150 beds in Lucknow in FY24, it further plans to add 100 beds in the Gurgaon unit. The Noida facility will be operationalized in Q4FY25 leveraging its healthy balance sheet & operating cashflows. Beyond FY26, it plans to add 400 beds in South Delhi where both DLF and Medanta will contribute equally.
MEDANTA’s organic bed capacity expansion plan is already in place until FY28, providing robust visibility of volume-led earnings growth over the next five years. We expect Medanta’s earnings momentum will continue as the company has completed the majority of capex in Lucknow and Patna with incremental capex to install beds gradually. We expect EBITDA margin improvement on account of a better therapy mix & price hike. At CMP of Rs 1468, the stock is trading at 64x its FY25e EPS. We maintain a HOLD rating on the stock.
Particulars (Rs Crores) | Q3FY24 | Q3FY23 | YoY | Q2FY24 | QoQ |
---|---|---|---|---|---|
Revenue | 855.00 | 706.00 | 21.00% | 865.00 | -1.00% |
COGS | 191.00 | 158.00 | 21.00% | 194.00 | -2.00% |
Gross Profit | 664.00 | 548.00 | 21.00% | 671.00 | -1.00% |
Gross Profit Margin (%) | 78.00% | 78.00% | 5 bps | 78.00% | 7 bps |
Employee Benefit Expense | 185.00 | 160.00 | 16.00% | 184.00 | 1.00% |
Other Expense | 245.00 | 217.00 | 13.00% | 254.00 | -3.00% |
EBITDA | 234.00 | 172.00 | 36.00% | 234.00 | 0.00% |
EBITDA Margin (%) | 27.39% | 24.00% | 305 bps | 27.00% | 37 bps |
Depreciation and Amortisation | 44.00 | 39.00 | 13.00% | 43.00 | 2.00% |
EBIT | 190.00 | 133.00 | 43.00% | 191.00 | 0.00% |
EBIT Margin (%) | 22.00% | 19.00% | 339 bps | 22.00% | 19 bps |
Finance Cost | 18.00 | 21.00 | -14.00% | 20.00 | -12.00% |
PBT | 172.00 | 112.00 | 53.00% | 171.00 | 1.00% |
Tax | 49.00 | 32.00 | 53.00% | 45.00 | 7.00% |
PAT | 124.00 | 81.00 | 53.00% | 125.00 | -1.00% |
PAT Margin (%) | 14.00% | 11.00% | 304 bps | 14.00% | -2 bps |
EPS (Rs) | 4.61 | 3.08 | 50.00% | 4.66 | -1.00% |
Source: Company Filings; StockAxis Research