Rainbow Children's Medicare (RAINBOW) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated operating revenue rose 50% YoY to ₹9,737.6 million; EBITDA increased 87% to ₹3,049 million and PAT rose 250% to ₹1,386.7 million.

• Recovery followed COVID-related weakness in FY21, with higher patient volumes, occupancy and case-mix improvement; IPO listing followed on 10 May 2022.

• Network comprised 14 hospitals and 3 clinics across 6 cities, with 1,500 beds and 640+ doctors; management plans to add 1,000 beds over five years, mainly in current markets.

Financial highlights

• Consolidated revenue from operations ₹9,737.6 million vs ₹6,500.5 million YoY; total income ₹9,927.0 million vs ₹6,603.1 million.

• EBITDA ₹3,049 million, up 87% YoY; EBITDA margin 31.31% vs 25.05%. PAT ₹1,386.7 million vs ₹395.7 million; PAT margin 14.24% vs 6.09%.

• PBT ₹1,873.5 million vs ₹557.0 million; consolidated basic EPS ₹14.75 vs ₹4.27 and diluted EPS ₹14.45 vs ₹4.17.

• Medical consumables and pharmacy costs rose to ₹1,947.3 million from ₹1,032.6 million; employee benefits reached ₹1,160.7 million, up 13.7% YoY.

• Other expenses rose 27% to ₹3,580.8 million; professional fees were ₹2,037.6 million, while fees as a share of operating revenue fell to 20.9% from 24.5%.

Outlook and guidance

• Plan to add 1,000 beds over five years, primarily in existing geographies; expansion priorities include tertiary/quaternary care hubs and broader perinatal services.

• Two spokes, at OMR Chennai and Hyderabad Financial District, were expected to begin operations in FY23; five further hospitals were in planning across NCR, Bengaluru, Chennai and Hyderabad.

• Strategic priorities include a pediatric heart and lung transplant programme in Hyderabad, HIS upgrades, robotic process automation, CRM software and a new mobile app.