HealthCare Global Enterprises (HCG) Q4 22/23 earnings summary

Executive summary

• FY23 revenue from operations including government grants rose 21.23% YoY to ₹16,944.47 Mn; EBITDA increased to ₹2,986.89 Mn, with margin at 17.63% versus 17.02%.

• Growth reflected higher patient footfall, occupancy and capacity utilisation; revenue reached a record high for nine consecutive quarters and EBITDA for eight consecutive quarters.

• Focus remains on expanding access to specialised cancer care, improving operating efficiency and building an asset-light network; management targets 18–20% ROCE over the medium term.

Financial highlights

• Consolidated revenue from operations including government grants: ₹16,944.47 Mn in FY23 versus ₹13,977.83 Mn in FY22, up 21.23% YoY.

• Consolidated EBITDA: ₹2,986.89 Mn versus ₹2,379.69 Mn; EBITDA margin 17.63% versus 17.02%.

• Adjusted EBITDA grew 31% YoY to ₹3,208 Mn from ₹2,453 Mn; adjusted EBITDA margin rose 139 bps to 18.9% from 17.6%.

• Profit after tax attributable to owners was ₹293.49 Mn versus ₹537.33 Mn; FY22 included a ₹946.1 Mn exceptional gain.

• Operating cash flow was ₹2,515.91 Mn; investing outflow ₹1,330.32 Mn and financing outflow ₹1,400.67 Mn, leaving cash flow for the year at negative ₹215.08 Mn.

Outlook and guidance

• 125 beds are being added through greenfield expansion in Bengaluru and Ahmedabad; further growth may come through acquisitions and partnerships with smaller healthcare facilities.

• Ramp-up of existing and emerging centres and lower future capex needs are expected to support cost optimisation and margin improvement.

• Asset-light day-care beds, hub-and-spoke operations and pay-per-use equipment are central to the model; targeted medium-term ROCE is 18–20%.

• Organic and inorganic network expansion, advanced technology investment and brand building remain priorities; no dividend was recommended as profits are being retained for growth.