Rainbow Children's Medicare (RAINBOW) Q1 24/25 earnings summary

Executive summary

• Achieved 15% year-over-year revenue growth in Q1 FY25, reaching ₹3,302 million, with EBITDA up 6.9% to ₹937 million and PAT down 4.2% to ₹397 million.

• Commissioned three new hospitals in Hyderabad, Bangalore, and Chennai, expanding to 1,935 beds across 19 hospitals and 6 outpatient clinics in 6 cities.

• Maintained high standards in pediatric and perinatal care, with multiple JCI and NABH accreditations and recognition for clinical excellence.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024.

• Appointment of Mr. K.V.S. Subramanyam as Secretarial Auditor for FY 2024-25.

Financial highlights

• Consolidated revenue from operations for Q1 FY25: ₹3,302.17 million, up from ₹2,871.65 million in Q1 FY24; EBITDA margin at 28.4%.

• PAT declined 4.2% to ₹397.28 million due to higher depreciation and finance costs from new units.

• Outpatient and inpatient volumes grew 12% and 10% year-over-year, respectively; deliveries up 10%.

• Employee benefits expense rose 12.4% year-over-year; professional fees to doctors increased 21.7%.

• Net cash position of INR 518 crores as of June 30, 2024.

Outlook and guidance

• Expansion plans include increasing total bed capacity to 2,625 by FY27, with new hospitals planned in Hyderabad, Bengaluru, Tamil Nadu, NCR, and Andhra Pradesh.

• Margin improvement anticipated in FY26 as new hospitals ramp up and recent capacity additions break even.

• New hospitals in Rajahmundry and Hennur to commence operations in Q4 FY25.

• IPO proceeds unutilized as of June 30, 2024, amounting to ₹200.92 million, are temporarily invested in fixed deposits and current accounts.

• Board approved continued capital expenditure for new hospitals and equipment as per IPO objectives.