Aster DM Healthcare (ASTERDM) Q2 24/25 earnings summary

Executive summary

• Robust growth in the Indian healthcare sector driven by rising demand, chronic diseases, and government focus on infrastructure and insurance.

• Revenue for H1 FY25 rose 18% year-over-year to INR 2,088 crore, with operating EBITDA up 44% to INR 410 crore and PAT up 88% to INR 171 crore.

• Outpaced industry growth with superior quality of care, infrastructure, and leadership in key markets.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024, following a delay due to technical issues from a domain migration.

• Strategic realignment and expansion, including GCC business separation, have driven strong operational and financial performance.

Financial highlights

• India revenue grew 18% year-on-year in H1 FY25 to INR 2,088 crores; Q2 FY25 revenue up 16% to INR 1,086 crores.

• Operating EBITDA margin improved to 19.6% in H1 FY25 from 16.1% in H1 FY24; PAT margin rose to 8.2% from 5.1%.

• Net profit post NCI doubled to INR 171 crores in H1 FY25 from INR 91 crores in H1 FY24; Q2 FY25 PAT post NCI at INR 97 crores, up 95% year-on-year.

• Material costs (excluding wholesale pharmacy) reduced to 20.7% in H1 FY25 from 22.8% a year ago.

• Consolidated cash and cash equivalents increased to INR 914.57 crores as of 30 September 2024.

Outlook and guidance

• Confident in sustaining growth trajectory through operational excellence and capacity expansion.

• EBITDA margin expected to reach 21%+ in 2-3 years; hospital and clinic segment margins to exceed 24%.

• Strategic focus on brownfield and greenfield expansion, niche specialties, operational efficiency, and digital transformation.

• ARPOB growth expected at 7-8% CAGR over the medium term.

• Company is focused on timely compliance and operational improvements post-GCC business separation.