Rainbow Children's Medicare (RAINBOW) Q4 22/23 earnings summary

Executive summary

• FY23 delivered strong volume-led growth: consolidated revenue rose 20.52% YoY to ₹11,735.74 Mn, EBITDA increased 30.01% to ₹3,964 Mn and PAT grew 53.15% to ₹2,123.77 Mn.

• The network comprised 16 hospitals and 3 clinics across 6 cities, with 1,655 beds; expansion plans focus on hub-and-spoke growth and deeper tertiary and quaternary care.

Financial highlights

• Consolidated revenue from operations was ₹11,735.74 Mn, up 20.52% YoY; excluding FY22 COVID vaccination revenue, revenue growth was 33.7%.

• EBITDA reached ₹3,964 Mn, up 30.01% YoY; EBITDA margin improved to 33.78% from 31.31%.

• PAT increased 53.15% YoY to ₹2,123.77 Mn; total income rose 21.33% to ₹12,044.39 Mn and PBT grew 50.41% to ₹2,817.79 Mn.

• Operating cash flow was ₹3,272.26 Mn; capital expenditure on property, plant, equipment and intangibles was ₹1,412.96 Mn.

• Consolidated basic and diluted EPS were both ₹20.89, versus ₹14.75 basic and ₹14.45 diluted in FY22.

Outlook and guidance

• Plans call for adding 1,000 beds over 4–5 years: 400 in Delhi NCR and 600 in Southern India, primarily through spokes in Hyderabad, Bengaluru and Chennai.

• FY24 expansion plans include hospitals in Central Hyderabad, Sarjapur, Bengaluru and Anna Nagar, Chennai, plus 15 beds at LB Nagar and 50 at Hydernagar, Hyderabad.

• Two Gurugram sites were secured for planned facilities of ~300-bed hub and ~100-bed spoke; final allotment remained pending, with the hub emphasizing tertiary and quaternary care.

• Strategy prioritizes higher tertiary and quaternary capacity, regional spokes, BirthRight perinatal services, operational efficiencies and aligned inorganic opportunities.