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), despite seasonal headwinds.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with a limited review report by auditors.

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

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

• Continued focus on digitization, operational efficiency, and ESG commitments, including AI-driven initiatives and renewable energy targets.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was INR 13,410 million, up from INR 12,334 million in Q1 FY24; consolidated net profit was INR 2,015 million, up from INR 1,840 million.

• EBITDA improved to INR 3,274 million from INR 2,858 million year-over-year.

• Net debt position at INR 1.55 billion as of June 30, 2024, with a net debt-to-equity ratio of 0.05.

• Group cash and liquid investments over INR 13.2 billion; gross borrowing at INR 14.75 billion.

• Ind AS 116 increased EBITDA by INR 148.7 million and decreased PAT by INR 19 million for Q1 FY25.

Outlook and guidance

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

• 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 throughput maximization 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.