Aster DM Healthcare (ASTERDM) Q1 24/25 earnings summary

Executive summary

• Strategic focus shifted to India after GCC business segregation, positioning for growth in a market with low hospital bed density and rising healthcare demand.

• India operations achieved 20% revenue growth to INR 1,002 crore and 39% operating EBITDA growth to INR 177 crore in Q1 FY25.

• Net profit post NCI rose 80% to INR 74 crore, driven by operational excellence and investment income; consolidated net profit for the quarter was INR 5,152.20 crores, primarily due to the gain on disposal of the GCC business.

• Expansion plans include adding 1,700 beds by FY27, targeting a total of 6,500 beds, with a focus on brownfield projects and selective inorganic growth, especially in South India.

• Board approved unaudited financial results for Q1 FY25, with four new directors appointed effective 31 July 2024.

Financial highlights

• Revenue grew 20% year-on-year to INR 1,002 crore in Q1 FY25; consolidated revenue from continuing operations was INR 1,001.87 crores.

• Operating EBITDA increased 39% year-on-year to INR 177 crore, with margin expanding to 17.7%.

• Core hospital and clinic segment revenue up 21% to INR 968 crore; operating EBITDA margin at 20.8%.

• ARPOB rose 12% year-on-year to INR 44,200; excluding O&M, ARPOB up 15% to INR 46,800.

• Standalone net profit for the quarter was INR 6,008.24 crores, significantly higher due to a one-time gain from the sale of the GCC business.

Outlook and guidance

• Blended EBITDA margin expected to rise to 20%-21% in the next 3-4 years, with hospital and clinic segment margins targeted at 23%-24%.

• ARPOB growth projected at 7%-8% CAGR over the next 3-4 years, with 3%-3.5% from price increases.

• Expansion to focus on brownfield projects and selective inorganic opportunities, especially in South India.

• The company completed the separation of its GCC business on 3 April 2024, with the GCC segment now classified as discontinued operations.

• A special dividend of INR 118.00 per equity share was distributed following the GCC business sale.