Narayana Hrudayalaya (NH) Q1 24/25 earnings summary

Executive summary

• Achieved record consolidated revenue of INR 13,410 million in Q1 FY25, up 8.7% year-on-year, with EBITDA at INR 3,274 million (24.4% margin) and PAT at INR 2,015 million (15.0% margin), maintaining strong profitability despite seasonal headwinds.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with a limited review report by auditors and adoption of amended Code of Conduct for Insider Trading.

• Notable clinical achievements included advanced robotic surgeries, 3D-printed implants, and innovative procedures across multiple hospitals.

• Strong balance sheet with group cash and liquid investments over INR 13.2 billion and net debt-to-equity ratio at 0.05 as of June 30, 2024.

• New Health City hospital in Camana Bay inaugurated, with patient inflow expected before end of Q2.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was INR 13,410 million, up from INR 12,334 million in Q1 FY24.

• EBITDA improved to INR 3,274 million (24.4% margin), and PAT grew to INR 2,015 million (15.0% margin) year-over-year.

• HCCI (overseas subsidiary) posted $32 million in revenue, up 4.8% year-on-year and 5.8% quarter-on-quarter.

• India business revenue growth was 10% year-on-year, with EBITDA margin for India business improving to 19.4% from 18.3% year-on-year.

• International patient revenue was 7.6% of total, largely from Bangladesh.

Outlook and guidance

• Organic and inorganic growth opportunities being pursued in India and overseas, with focus on synergies, return on capital, and digital transformation.

• Next major growth inflection expected when new capacities in Kolkata and Bangalore come online in 3-4 years.

• Revenue growth to align with market and internal efforts until new facilities are operational.

• New health insurance subsidiary commenced operations in June 2024, expected to contribute to future growth.

• Ongoing investments in infrastructure, medical equipment, and new clinics planned for FY25.