Aster DM Healthcare, one of the largest private healthcare service providers in multiple GCC states and an emerging healthcare player in India, today announced its financial results for the quarter ended June 30, 2019.
A strong focus on delivering quality healthcare through diversified healthcare offerings and enhanced efficiencies saw Aster DM Healthcare continue to grow strongly.
Effective 1 April 2019 , the Group adopted Ind AS 116 ‘Leases’, applied to lease contracts existing on 1 April 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the year ended 31 March 2019 have not been retrospectively adjusted. The effect of this adoption has resulted in decrease in other expenses, increase in interest expenses (included under finance cost) and an increase in depreciation and amortisation expenses for continuing operations.
The Company recorded a net profit of Rs. 24.7 crore for the quarter ending June 30, 2019 before the impact of Ind AS 116. This represents a year-on-year increase of 21% from a PAT of Rs. 20.4 crore registered in the same quarter last year.
Revenue from operations for Q1FY20 recorded an increase of 14.3% reaching Rs. 2,028.6 crore on sustained organic growth from its existing operations that includes 25 hospitals, 115 clinics and over 231 pharmacies in nine countries, including India.
Alisha Moopen’s appointment as the Deputy Managing Director of Aster DM Healthcare was approved by the Board of Directors during their meeting on 7th August, 2019.
Financial Performance Highlights
Performance Review for Q1FY20 vs. Q1FY19
- Revenue from operations improves by 14.3% to Rs. 2,028.6 crore compared to Rs. 1,774.6 crore
- EBITDA (excluding other income and before Ind AS 116) increases by 32.5 % Y-o-Y to Rs. 164.2 crore compared to Rs. 123.9 crore. EBITDA post Ind AS 116 impact is at 223.7 crore.
- PAT (adjusted for exceptional income in previous year) increases to Rs. 24.7 crore compared to Rs. 20.4 crore. PAT post Ind AS impact is at Rs.10 crore.
Commenting on the performance for Q1FY20, Dr. Azad Moopen, Chairman, Aster DM Healthcare, said:
“We are happy with our performance this quarter. The first two quarters of the financial year are always slow because of the holiday season in the GCC. However when compared to the corresponding quarter last year our growth has been strong.
Our hospitals business continues to grow and is very robust. We expect double digit growth in our hospitals business in the coming year. Our clinics and pharmacies also continue to perform well.
We are well on track with our growth plans, having announced a new 230+ bedded Aster RV hospital in Bengaluru this quarter. All hospitals that have been completed in the previous year are ramping up well and can be expected to achieve breakeven soon.”
Alisha Moopen, Non-Executive Director and CEO of Aster Hospitals and Medcare Hospitals & Clinics-GCC, has been promoted to the role of Deputy Managing Director of Aster DM Healthcare.
Speaking on the occasion, Dr. Azad Moopen said, “The appointment is a part of our long-term strategy to create a sustainable business that is well-equipped to meet the needs of the market and the people. Having seen Aster DM Healthcare being built brick by brick over the last three decades, Alisha has been in-grained with the values and purpose of the organisation. A qualified Chartered Accountant with over 7 years of experience working with leading financial organizations in UK and USA, before joining Aster DM Healthcare, she brings in the talent and capabilities required to take our organization to the next level. Having worked within the company for the last 7 years and leading the success story in many of our markets, Alisha has been elevated to this position based on her performance and capabilities. We are confident that she would continue to build the legacy of Aster with the brand promise of ‘We’ll Treat You Well’ and lead the organisation to be in the forefront of healthcare providers through digital transformation and make it future ready.”
“I am so humbled and honoured with this opportunity to continue the legacy of Aster and serve our mission in healthcare. Many companies aspire to change the world but very few have all the elements required: talent, resources and compassion. Aster has proven that it has all three in abundance and as the Deputy Managing Director, I can’t ask for a better foundation. My dream for the future and our collective goal as an organisation is to build the healthcare model of care that is centred around wellness and superior clinical outcome to ensure people’s wellbeing to live a happy and fulfilled life thereby building a success story on impact and sustainability in this ever-evolving world,” said Alisha Moopen.
Working closely with Dr. Azad Moopen, Alisha would be leading the growth strategy for the company and steering the organisation to newer heights of success.
Revenues increased by 19% to Rs. 689 crore in Q1FY20 from Rs. 580 crore in Q1FY19. EBITDA (excluding other income and before impact of Ind AS 116) increased by 13% from Rs. 73 crore in Q1FY19 to Rs. 83 crore in Q1FY20. The EBITDA margin was at 12.1% in Q1FY20 compared to 12.7% in Q1FY19. This reduction was on account of initial year losses of new hospitals operational from second quarter of FY 19.
Revenues for GCC clinics increased by 7% to Rs. 483 crore in Q1FY20 from Rs. 453 crore in Q1FY19. EBITDA for GCC clinics increased 5% from Rs. 54 crore in Q1FY19 to Rs. 56 crore in Q1FY20. EBITDA margins stood at 11.7% in Q1FY20 compared to 11.8% in Q1FY19.
Revenues increased by 14% to Rs. 540 crore in Q1FY20 from Rs. 472 crore in Q1FY19. EBITDA increased 13% from Rs. 29 crore in Q1FY19 to Rs. 32 crore in Q1FY20.
Medical Excellence Highlights
Since inception, Aster DM Healthcare has been in continuous pursuit to push boundaries of excellence in health care and cater to the needs of patients, thereby setting global benchmarks in the field of medicine and patient care. Mentioned below are some of the significant achievements, in the quarter under review, that are a testament to clinical excellence:
- Aster Aadhar, Kolhapur successfully performed tracheal stenting procedure on patient suffering from Carcinoma Oesophagus complicated with T-O fistula, a first of its kind in the region
- Aster Aadhar Hospital was affiliated as Centre for Disaster Management by District Disaster Management Authority of Kolhapur, Maharashtra
- Aster CMI, Bengaluru successfully completed a sex Reassignment Surgery (Female to male) for a patient diagnosed with gender dysphoria
- The Aster Medcity, Kochi cardiac team successfully conducted the second Indian -made TAVI implant procedure
- At Medcare, surgeon relieved a patient of chronic respiratory problems using the latest laser technology to open up the patient’s airways and to avoid damaging his voice cords. – Business Wire India