Hospitals and labs look at a double-digit revenue growth in FY22

The corporate hospitals and labs are expecting to have better operating margins and revenue growth in FY22 compared to FY20.

Healthcare has become one of the largest sectors in India, both in terms of revenue and employment, and is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players. The players are looking at adding bed capacity within the existing infrastructure, and some of the larger players are actively scouting for inorganic growth opportunities.

The private hospitals sector witnessed a spike in COVID-19 occupancies during Q1 FY22, in line with the active cases in India that touched an all-time high in May 2021, peaking at more than 4x the first wave peak. The overall occupancy levels were supported by longer average length of stay for Covid patients even as localized lockdowns resulted in a sequential decline in non-Covid occupancies to a certain extent. And Q2 FY22 too has been promising with the rise in the average revenue per occupied bed and a lower average length of stay.

The corporate hospitals are now banking on elective procedures to achieve a double-digit revenue growth in FY22. What is interesting is that the sector expects to have better operating margins in FY22 compared to FY20.

Q2 FY22 financial performance Some listed leading hospitals
Apollo Hospitals Enterprise (AHEL) JAS 2021 quarterly performance was better than expected with a rise in the average revenue per occupied bed (ARPOB) and a lower average length of stay (ALOS). The company also acquired a 65-percent stake in the 180-bed Excelcare Hospital in Guwahati at an enterprise value of ₹210 crore, and it is seeking to acquire a 300-bed facility in Mumbai in the next few years and 300 more beds in Bengaluru by acquisition in the next two years.

The company has reported total income of ₹3722.70 crore for the quarter ended September 30, 2021 as compared to ₹3784.85 crore for the quarter ended June 30, 2021. The company has posted net profit of ₹247.81 crore for the quarter ended September 30, 2021 as against net profit of ₹489.28 crore for the quarter ended June 30, 2021.

The company has reported total income of ₹3722.70 crore for the quarter ended September 30, 2021 as compared to ₹2772.04 crore for the quarter ended September 30, 2020. The company has posted net profit of ₹247.81 crore for the quarter ended September 30, 2021 as against net profit of ₹60.27 crore for the quarter ended September 30, 2020.

The company has reported total income of ₹7507.55 crore during the 6-month period ended September 30, 2021 as compared to ₹4951.25 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹737.09 crore for the 6-months period ended September 30, 2021 as against net loss of ₹147.92 crore for the 6-month period ended September
30, 2020.

Aster DM Healthcare Limited has reported total income of ₹2513.45 crore for the quarter ended September 30, 2021 as compared to ₹2379.63 crore during the quarter ended June 30, 2021. The company has posted net profit of ₹106.91 crore for the quarter ended September 30, 2021 as against net profit of ₹44.47 crore for the quarter ended June 30, 2021.

The company has reported total income of ₹2513.45 crore quarter the period ended September 30, 2021 as compared to ₹2250.71 crore during the quarter ended September 30, 2020. The company has posted net profit of ₹106.91 crore for the quarter ended September 30, 2021 as against net profit of ₹32.86 crore for the quarter ended September 30, 2020. The company has reported EPS of ₹2.15 for the quarter ended September 30, 2021 as compared to ₹0.66 for the quarter ended September 30, 2020.

The company has reported total income of ₹4893.08 crore during the 6 month-period ended September 30, 2021 as compared to ₹4004.40 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹151.38 crore for the 6-month period ended September 30, 2021 as against net loss of ₹50.07 crore for the 6-month period ended September 30, 2020.

Fortis Healthcare reported total income of ₹1470.56 crore for the quarter ended September 30, 2021 as compared to ₹1418.15 crore for the quarter ended June 30, 2021. The company has posted net profit of ₹130.60 crore for the quarter ended September 30, 2021 as against net profit of ₹430.61 crore for the quarter ended June 30, 2021. The company has reported EPS of ₹1.42 for the quarter ended September 30, 2021 as compared to ₹3.49 for the quarter ended June 30, 2021.

The company has reported total income of ₹1470.56 crore for the quarter ended September 30, 2021 as compared to ₹1020.30 crore for the quarter ended September 30, 2020. The company has posted net profit of ₹130.60 crore for the quarter ended September 30, 2021 as against net profit of ₹15.47 crore for the quarter ended September 30, 2020.

The company has reported total income of ₹2888.71 crore during the 6-month period ended September 30, 2021 as compared to ₹1630.70 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹561.21 crore for the 6-months period ended September 30, 2021 as against net loss of ₹172.41 crore for the 6-months period ended September 30, 2020.

Max Healthcare Institute reported a multifold jump in its consolidated net profit to ₹144.65 crore for the quarter ended September 30, mainly on account of a rise in revenue from elective surgeries and improved OPD footfalls. The company has reported total income of ₹1049.64 crore for the quarter ended September 30, 2021 as compared to ₹1026.13 crore for the quarter ended June 30, 2021.

The company has reported total income of ₹1049.64 crore for the quarter ended September 30, 2021 as compared to ₹691.26 crore for the quarter ended September 30, 2020. The company has posted net profit of ₹144.65 crore for the quarter ended September 30, 2021 as against net profit of ₹16.65 crore for the quarter ended September 30, 2020.

The company has reported total income of ₹2075.77 crore during the 6-month period ended September 30, 2021 as compared to ₹966.84 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹291.57 crore for the 6-month period ended September 30, 2021 as against net loss of ₹297.60 crore for the 6-months period ended September 30, 2020.

Narayana Hrudayalaya reported consolidated net profit of ₹99.39 crore in September quarter (Q2 FY22), on the back of healthy operational performance. The company had posted a consolidated net loss of ₹3.42 crore in Q2 FY21.

Indian operations staged a decent recovery during the quarter gone by, after a significant impact was observed in Q1 FY22, as the effects of the second wave of the pandemic is subsiding.

In Q2 FY22, the company’s consolidated total operating income grew 55.84 percent YoY to ₹952.41 crore from ₹611.4 crore in the corresponding quarter of previous fiscal. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) stood at ₹181 crore, as against ₹37.2 crore in Q2 FY21. EBITDA margins improved to 19.3 percent from 6.19 percent in a year-ago quarter.

Healthcare Global Enterprises Ltd (HCG) reported total revenue ₹352 crore for the quarter ended September 30, 2021 as compared to ₹247.9 crore in the corresponding quarter of the previous year, reflecting YoY growth of 42 percent. Consolidated profit before depreciation and amortization, finance costs, exceptional items and taxes (EBITDA) was ₹65 crore, as compared to ₹34 crore in the corresponding quarter of the previous year, a growth of 91.1 percent YoY and 19 percent QoQ.

Operating EBITDA was ₹61.7 crore, as compared to ₹30 crore in the corresponding quarter of the previous year, a growth of 105.7 percent YoY and 20.5 percent QoQ. Operating EBITDA for existing centers was ₹59.8 crore, a growth of 81.7 percent YoY and 12.4 percent QoQ, reflecting an operating EBITDA margin of 21.9 percent. Operating EBITDA from new centers was ₹1.9 crore, as compared to a loss of ₹2.9 crore in the corresponding quarter of the previous year and loss of ₹1.9 crore in the previous quarter.

Consolidated profit after taxes and minority interest (PAT) was a profit of ₹103.1 crore, as compared to a loss of ₹22.3 crore in the corresponding quarter of the previous year.

Some listed leading diagnostic centers
Dr. Lal Pathlabs Ltd. reported total income of ₹512.7 crore, against ₹444.8 crore in the corresponding quarter of the previous year (YoY) and ₹620.7 crore in previous quarter (QoQ).

For the quarter ended September 30, 2021(Q2 FY2022), the company’s net profit was ₹95 crore, against ₹85.3 crore in the corresponding quarter of the previous year (YoY) and ₹131.2 crore in previous quarter (QoQ).

For the 6-month period ended September 30, 2021(half year ended FY2022), the company’s total income was ₹1133.4 crore, against ₹722.2 crore in the previous year (YoY) (half year ended FY2021). The net profit was at ₹226.2 crore for the 6-months period ended September 30, 2021 (half year ended FY2022), compared to ₹113.7 crore in the previous year (YoY) (half year ended FY2021).

Morepen Laboratories Limited reported total income of ₹398.17 crore for the quarter ended September 30, 2021 as compared to ₹388.31 crore for the quarter ended June 30, 2021. The company has posted net profit of ₹37.36 crore for the quarter ended September 30, 2021 as against net profit of ₹30.47 crore for the quarter ended June 30, 2021.

The company has reported total income of ₹398.17 crore for the quarter ended September 30, 2021 as compared to ₹340.13 crore for the quarter ended September 30, 2020. The company has posted net profit of ₹37.36 crore for the quarter ended September 30, 2021 as against net profit of ₹27.17 crore for the quarter ended September 30, 2020.

The company has reported total income of ₹786.48 crore during the 6-month period ended September 30, 2021 as compared to ₹599.09 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹67.84 crore for the 6-month period ended September 30, 2021 as against net profit of ₹46.54 crore for the 6-month period ended September 30, 2020.

Metropolis Healthcare Limited reported total income of ₹308.53 crore for the quarter ended September 30, 2021 as compared to ₹288.4 crore for the quarter ended June 30, 2021.

The company has posted net profit of ₹58.27 crore for the quarter ended September 30, 2021 as against net profit of ₹60.5 crore for the quarter ended June 30, 2021.

The company has reported total income of ₹308.53 crore for the quarter ended September 30, 2021 as compared to ₹291.43 crore for the quarter ended September 30, 2020. The company has posted net profit of ₹58.27 crore for the quarter ended September 30, 2021 as against net profit of ₹60.28 crore for the quarter ended September 30, 2020.

The company has reported total income of ₹638.72 crore during the 6-month period ended September 30, 2021 as compared to ₹437.72 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹133.15 crore for the 6-month period ended September 30, 2021 as against net profit of ₹63.18 crore for the 6-month period ended September 30, 2020.

Thyrocare Technologies reported 11 percent higher total revenues for the September 2021 quarter on consolidated basis at ₹170.69 crore.

Half-yearly sales ended September 2021 were up 62.4 percent at ₹332.62 crore. Net cash inflow from operating activities was up more than three-fold at ₹70.24 crore on higher operating profits. The top line growth came from the diagnostics side, which also contributed bulk of the EBIT growth in the quarter on higher demand traction.

On a YoY basis, the net profit at ₹60.56 in the September 2021 quarter was up 32.31 percent on a YoY basis. The spike in profit was on account of higher sales and also due to lower input costs as was evident in the boost to EBIT of the core diagnostic services. On a sequential basis, the profits were higher 39.85 percent in June 2021 quarter. Net margins stood at 40.61 percent in the September 2021 quarter compared to 27.21 percent in the September 2020 quarter and 31.73 percent in the sequential June 2021 quarter.

Vimta Labs Limited reported total income of ₹75.62 crore for the quarter ended September 30, 2021, as compared to ₹61.53 crore for the quarter ended June 30, 2021. The company has posted net profit of ₹9.74 crore for the quarter ended September 30, 2021 as against net profit of ₹8.07 crore for the quarter ended June 30, 2021.

The company has reported total income of ₹75.62 crore for the quarter ended September 30, 2021 as compared to ₹59.42 crore for the quarter ended September 30, 2020. The company has posted net profit of ₹9.74 crore for the quarter ended September 30, 2021, as against net profit of ₹7.54 crore for the quarter ended September 30, 2020.

The company has reported total income of ₹137.15 crore during the 6-month period ended September 30, 2021 as compared to ₹92.43 crore during the 6-month period ended September 30, 2020. The company has posted net profit of ₹17.81 crore for the 6-month period ended September 30, 2021 as against net profit of ₹5.59 crore for the 6-month period ended September 30, 2020.

Across the healthcare deals landscape, we see continued consolidation of private clinics and specialist care providers, which remain fragmented across different markets. Operators will need to embrace digitization and accelerate the adoption of digitized practice management and digital solutions to put patients at the center of the patient care journey in order to unlock further value.

The sector is on a strong footing and the growth outlook is bright. And the stocks’ stellar appreciation suggests investors are capturing future optimism adequately, at least for now.