Aster DM Healthcare (ASTERDM) Investor Presentation summary

Market opportunity and industry trends

• India's healthcare delivery market is projected to exceed $100 billion by FY26, driven by a vast population, low hospital bed density, and rising healthcare expenditure.

• Out-of-pocket expenses remain high, but health insurance coverage is expected to expand to 46% by FY25.

• Medical tourism and an aging population are significant growth drivers, with medical tourists projected to reach ~3 million by 2030.

Business overview and operational footprint

• Operates 19 hospitals, 13 clinics, 215 pharmacies, and 232 labs/PECS across 15 cities in 5 states, with 4,867 capacity beds and 68% occupancy in FY24.

• Holds the second-largest hospital network in South India, leading in Kerala and strong positions in Karnataka, Maharashtra, Andhra Pradesh, and Telangana.

• Revenue mix is diversified across geographies and specialties, with 58% from niche specialties and increasing contributions from medical value travel and insurance.

Financial performance and growth

• Revenue grew at a 23% CAGR over five years, reaching INR 3,699 crore in FY24; operating EBITDA margin expanded to 17%.

• Adjusted PAT rose 63% YoY to INR 240 crore in FY24, with ROCE improving to 16.4%.

• Mature hospitals delivered 22.4% EBITDA margin and 32% ROCE in FY24.

• Net debt/EBITDA (pre-IndAS) improved to 1.1x.