HealthCare Global Enterprises (HCG) Q1 2025 earnings summary

Executive summary

• Q1 FY25 delivered robust operational and financial performance, with all-time high revenue and strong growth across centers, reflecting medical excellence and strategic expansion through the acquisition of MG Cancer Hospital in Vizag.

• HCG operates 22 cancer centers, 3 multi-specialty hospitals, and 6 day care centers across 19 cities and 8 states, leveraging advanced technology and a multidisciplinary approach for superior outcomes.

• Strategic initiatives include management strengthening, capital allocation optimization, and targeted expansion through brownfield and bolt-on acquisitions.

• Continued focus on research, innovation, and digital initiatives, including a new customer app and ePharmacy, enhancing patient engagement and operational efficiency.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on August 8, 2024.

Financial highlights

• Q1 FY25 consolidated revenue reached INR 5,256.9 mn, up 14% year-over-year; adjusted EBITDA was INR 928.6 mn, a 21% increase, with margin improving by 110 bps to 17.7%.

• PAT for the quarter was INR 121 mn, up 59% from INR 76 mn YoY; ARPOB increased 14.1% YoY to INR 44,342; ALOS reduced to 1.98 days.

• International business generated INR 200 mn, the highest ever for a quarter.

• Standalone revenue from operations for Q1 FY25 was INR 2,929.5 mn, up from INR 2,715.2 mn in Q1 FY24.

• Consolidated net profit for Q1 FY25 was INR 136.3 mn, up from INR 36.5 mn in Q1 FY24.

Outlook and guidance

• EBITDA margin for established centers expected between 19%-20% for the year, with overall revenue growth guidance of 13%-15%.

• HCG targets faster-than-market growth over the next five years, driven by organic expansion, brownfield projects, and M&A.

• CapEx for FY25 expected to remain in the INR 800 mn per quarter range, supporting new facilities and expansion.

• Acquisition agreements signed for a majority stake in Vizag Hospital And Cancer Research Centre Private Limited, with staged payments and conditions precedent.