Jupiter Life Line Hospitals (JLHL) Q2 23/24 earnings summary

Executive summary

• H1 FY24 total income rose 19.8% YoY to Rs 508.4 Cr; EBITDA increased 8.4% to Rs 116.1 Cr, while EBITDA margin declined to 22.8% from 25.2%.

• Indore reached EBITDA break-even; insurance empanelment there and completed insurer contract renegotiations in Pune are expected to support occupancy and ARPOB, respectively.

Financial highlights

• Q2 FY24 revenue from operations grew 19.5% YoY to Rs 260.8 Cr; total income rose 18.4% to Rs 264.2 Cr.

• Q2 FY24 EBITDA was Rs 62.0 Cr, up 8.8% YoY; EBITDA margin was 23.5% versus 25.6%.

• Q2 FY24 PBT increased 8.4% YoY to Rs 41.4 Cr; PAT rose 24.4% to Rs 33.7 Cr and basic EPS was Rs 5.7 versus Rs 5.3.

• H1 FY24 revenue from operations increased 20.5% YoY to Rs 501.5 Cr; PBT rose 7.1% to Rs 75.1 Cr.

• H1 FY24 PAT was Rs 87.7 Cr, up 52.4% YoY, including a Rs 30.44 Cr deferred tax asset; basic EPS was Rs 15.6 versus Rs 11.3.

Outlook and guidance

• Indore insurance empanelment is expected to improve demand and occupancy; completed Pune insurer contract renegotiation is expected to raise ARPOB.

• Dombivli construction is progressing as planned; the greenfield hospital is designed for 500 beds, with a broader plan to build 2,500 beds in western India over the next few years.

• Strategic priorities include expanding in western India's focus micro-markets, recruiting and retaining skilled clinicians, and investing in care quality and technology.