Healthcare Global Enterprises Review - Margins Still Below Industry Levels; ARPOB Improves: Axis Securities
There were no benefits from operating leverage as existing centers reported healthy Ebitda margins of 23.9% and new centers reported the highest-ever Ebitda margins of 10.4% in Q3 FY24.
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Axis Securities Report
Healthcare Global Enterprises Ltd.'s reported revenue of Rs 470 crore, up 10.6% YoY, which stood Inline our expectations. Growth was primarily driven by average revenue per operating bed improvement to Rs 42,788, up 15.6%/1.7% YoY/QoQ. The number of occupied bed days decreased by 8.1%/9.9% YoY/QoQ and led to a fall in occupancies by 590 basis points /660 basis points to 59.8% YoY/QoQ.
Healthcare Global Enterprises Ebitda margins stood at 16.8%, down 105 bps /63 bps on YoY/QoQ. There were no benefits from operating leverage as existing centers reported healthy Ebitda margins of 23.9% and new centers reported the highest-ever Ebitda margins of 10.4% in Q3 FY24.
However, over the last seven quarters, the company’s consolidated Ebitda margins remained consistent (between 17.0%), although other expenses decreased as expenses in the medical consulting segment increased.
Reported profit after tax after adjustments were Rs 3.5 crore compared to Rs 4.3 crore in Q3 FY24.
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