HealthCare Global Enterprises (HCG) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations, including government grants, rose 37.9% YoY to ₹13,977.83 million; operating EBITDA increased 88% to ₹2,379.69 million.

• Profit attributable to owners was ₹537.33 million versus a ₹1,934.61 million loss in FY21; FY22 included a net exceptional gain of ₹946.10 million.

• Net debt declined to ₹1,901 million at March 31, 2022 from ₹2,882 million a year earlier; consolidated cash and cash equivalents were ₹1,975.08 million.

• Revenue reached an all-time quarterly record in each of FY22’s four quarters; operating beds were 1,702 and average occupancy was 58.3%.

Financial highlights

• Consolidated revenue from operations was ₹13,977.83 million, including ₹30.05 million of government grants; other income was ₹126.67 million.

• Operating EBITDA rose from ₹1,265.80 million in FY21 to ₹2,379.69 million in FY22; reported EBITDA margin increased to 17.0% from 12.5%.

• Operating cash flow was ₹2,201.24 million versus ₹1,205.21 million in FY21; investing cash flow was ₹1,245.86 million, including asset-sale and deposit-maturity proceeds.

• Total expenses increased 21.5% to ₹14,158.63 million; finance costs fell 18.0% to ₹977.65 million, while employee benefits expense rose 19.2% to ₹2,336.49 million.

Outlook and guidance

• FY23 priorities include healthy domestic and international revenue growth, stronger EBITDA and PAT margins, cash generation, EPS growth, debt management and improved capital returns.

• Plans call for consolidating existing centres while pursuing new centres, expanding capacity and using an asset-light model to connect peripheral centres with metro hubs.

• Digital transformation aims to build an omnichannel, end-to-end patient engagement platform to support digitally influenced footfalls and patient experience.

• Milann plans to consolidate its Bangalore leadership and scale up in North India.