Rainbow Children's Medicare (RAINBOW) Q4 23/24 earnings summary

Executive summary

• FY24 delivered record consolidated revenue of ₹12,969 million and EBITDA of ₹4,289 million despite seasonal headwinds and lower occupancy.

• Capacity expanded by 280 beds across three new spoke hospitals and two existing facilities; the network reached 19 hospitals, 1,935 beds and 4 clinics in 6 cities.

• Priorities include improving new-unit performance, expanding IVF and quaternary care, growing international business, and pursuing targeted geographic expansion.

Financial highlights

• Consolidated revenue from operations was ₹12,969 million, up 10.5% YoY; total income was ₹13,339.64 million.

• EBITDA reached ₹4,288.85 million, up 8.2% YoY; EBITDA margin was 33.07% versus 33.78%.

• PAT was ₹2,182.87 million, up 2.8% YoY; PAT margin was 16.83% versus 18.10%.

• Basic and diluted EPS were ₹21.38, versus ₹20.89; consolidated PBT rose 4.6% to ₹2,948.13 million.

• Operating cash flow was ₹3,214.01 million; investing cash outflow was ₹4,652.01 million, primarily reflecting ₹3,535.76 million of capital spending.

Outlook and guidance

• Focus for the coming year is to enhance existing units and optimise performance; newer hospitals are expected to approach the performance of mature units as they stabilise.

• Hennur and Rajahmundry hospitals are targeted to open by end-FY25; Coimbatore is expected to commence operations within 24 months.

• Two Gurugram hospital projects, planned for a combined ~400 beds, are in design; project work has yet to commence.

• Expansion priorities include IVF, paediatric quaternary and perinatal care, international business, Tier II markets and potential M&A.

• Planned capex is expected to be funded through operating cash flows and internal accruals, without debt financing.