Rainbow Children's Medicare (RAINBOW) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue, EBITDA, and PAT, with Q2 FY25 revenue up 25% year-over-year to ₹4,175 million, PAT up 25% to ₹790 million, and EBITDA up 25% to ₹1,471 million, maintaining strong margins above 35%.

• Operational expansion continued with 1,935 beds across 19 hospitals and 6 outpatient clinics in 6 cities, with new hospitals in Hyderabad, Bengaluru, and Chennai reaching operational stabilization.

• Recognized for clinical excellence with multiple JCI and NABH accreditations and several national awards for pediatric and perinatal care.

• Launched Butterfly Essentials retail brand and established a comprehensive child development center in Hyderabad.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved and reviewed, with no material misstatements identified by auditors.

Financial highlights

• Q2 FY25 consolidated revenue grew 25% year-over-year to ₹4,174.60 million; PAT rose 25% to ₹790.05 million; EBITDA margin at 35.2%.

• H1 FY25 consolidated revenue increased 21% year-over-year to ₹7,477 million; PAT up 13% to ₹1,187 million.

• Outpatient and inpatient volumes grew 20% and 22% year-over-year; deliveries up 12%.

• Total expenses in Q2 FY25 rose 26.7% year-over-year, mainly due to higher employee and professional fees.

• Basic and diluted EPS (consolidated) for Q2 FY25 were ₹7.77, up from ₹6.20 in Q2 FY24.

Outlook and guidance

• Expansion plans target increasing total bed capacity from 1,935 to 2,715 by FY27-28, with new hospitals planned in Hyderabad, Bengaluru, Tamil Nadu, NCR, Andhra Pradesh, and Coimbatore.

• Focus on building profitability in new centers before further expansion, especially in Bangalore and NCR.

• Continued investment in new hospitals and medical equipment as per IPO objectives.

• Focus on replicating the hub-and-spoke model in new geographies and expanding into tier-2 cities in Southern India.