HealthCare Global Enterprises (HCG) Q4 20/21 earnings summary

Executive summary

• FY21 brought lower revenue and operating EBITDA and a wider net loss amid COVID-19 disruption, travel restrictions and oncology drug margin caps.

• A preferential equity and warrant investment strengthened the balance sheet; management prioritized debt reduction, growth and free cash flow.

Financial highlights

• Consolidated revenue including government grants was ₹10,134.4 million, down 7.5% YoY; operating EBITDA was ₹1,265.8 million versus ₹1,721.8 million.

• Operating EBITDA margin was 12.5% versus 15.7%; net loss attributable to owners was ₹1,934.6 million versus ₹1,067.0 million.

• Revenue from medical services declined 6.5% to ₹9,417.5 million; sales of medical and non-medical items fell 14.7% to ₹622.6 million.

• Operating cash flow was ₹1,205.2 million versus ₹1,301.4 million; PPE capex cash outflow was ₹354.2 million versus ₹1,078.1 million.

Outlook and guidance

• Priorities include domestic and international revenue growth, stronger EBITDA and PAT margins, robust cash generation, debt management and improved EPS, ROCE and ROE.

• Management targeted growth, margin improvement and free cash flow while maintaining oncology, fertility and precision diagnostics leadership; third-wave and lockdown uncertainty remained.

• Gurgaon cancer centre development was underway, with operations expected by end-2021 and 2022; timing and execution remain subject to project conditions.