Aster DM Quality Care (ASTERDM) investor relations material

Executive summary

• First full quarter as a combined platform; 2.2 million patients served, up 12% YoY, with continuity of care maintained and no patient-care disruptions reported.

• Q2 delivered record combined-basis revenue, operating EBITDA and operating margin; reported prior periods were not restated, so growth comparisons use like-for-like combined comparatives.

Financial highlights

• Q2 combined-basis revenue was INR 2,829.20 crore, up 19% YoY; operating EBITDA rose 25% to INR 678 crore, with margin at 24.0%, up 111 bps.

• Q2 normalised PAT after NCI grew 34% to INR 281 crore, with margin improving to 9.9% from 8.8%; excludes merger-related exceptional expenses and share of loss of equity-accounted investees.

• Consolidated Q2 PBT was INR 419.35 crore and net profit INR 322.38 crore; merger-related exceptional costs were INR 18.95 crore.

• H1 combined-basis revenue increased 20% to INR 5,429 crore and operating EBITDA rose 27% to INR 1,255 crore; operating margin improved to 23.1% from 21.8%.

• H1 normalised PAT after NCI grew 27% to INR 457 crore, with margin at 8.4% versus 7.9%; excludes specified exceptional, CSR and other expenses.

Outlook and guidance

• Full-year operating EBITDA margin guidance is 24%-25% within 2-3 years post-merger, inclusive of synergies and greenfield and brownfield bed additions.

• Synergy potential is INR 200 crore; INR 16.6 crore was realised in Q2, equivalent to an annualised run rate of ~INR 65 crore; full potential expected within four quarters, with full realisation indicated by Q6-Q7.

• Planned additions of 4,230 beds would take network capacity from 10,840 to 15,070; 47% are in existing facilities and 53% in new facilities.

• Expansion includes 454-bed Aster Trivandrum in FY2027; management cited ~1,800-2,000 brownfield beds and possible acquisitions over the next 2-3 years.