Global Health (MEDANTA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw continued progress in clinical excellence, operational efficiency, and patient-centered care, with notable achievements in advanced surgeries and recognition of medical staff among the world's top 2% scientists.

• Achieved strong year-over-year growth in Q3 FY25 with total income up 12.3% and PAT up 15.6%, driven by higher patient volumes and robust performance from developing hospitals.

• Expansion initiatives included commissioning advanced robotic surgery in Lucknow, a new neurointervention in Gurugram, specialty launches, technology investments, and a long-term lease for a new 110-bed hospital in Ranchi.

• Construction of the Noida hospital is on track to be operational within 3–6 months, with 1,500 beds of greenfield capacity planned in the Delhi-Mumbai corridor over the next three years.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2024, were approved by the board on February 4, 2025.

Financial highlights

• Q3 FY25 total income was INR 9,595 million, up 12.3% year-on-year; EBITDA rose 8.4% to INR 2,538 million with a margin of 26.5%.

• Profit after tax grew 15.6% year-on-year to INR 1,429 million; PAT margin improved to 14.9%.

• Inpatient volumes increased 12.9% year-on-year to 44,856; outpatient volumes rose 8.7%.

• ARPOB increased 1.3% year-on-year to INR 61,307; average occupied bed days grew 10.5% with occupancy at 64%.

• Revenue from international patients increased 14.3% year-on-year to INR 541 million.

Outlook and guidance

• Management expects continued growth in occupied bed days and volumes, supported by ongoing bed additions and strong demand, especially in Patna and Lucknow.

• Approximately 1,000 bed additions are planned over the next two years, with three major greenfield projects totaling 1,600 beds underway in Mumbai, Pitampura (Delhi), and South Delhi.

• Noida hospital is expected to commence operations by mid-2025, with break-even for new facilities typically assumed within a couple of years.

• Ongoing expansion with new hospitals in Ranchi, Noida, Mumbai, South Delhi, and Indore, targeting ~2,900 additional beds over five years.

• Capex plan of ~Rs. 3,000 crores over five years, funded by internal accruals and debt.