KIMS Hospitals surges 10% on strong June quarter results

Shares of recently listed healthcare facilities company Krishna Institute of Medical Sciences (KIMS) surged over 10 per cent to Rs 1,300 on the BSE in the intra-day trade on Wednesday after the company reported a strong 57 per cent growth in consolidated profit after tax (PAT) at Rs 92.0 crore for the quarter ended June 2021 (Q1FY22) on a sequential basis.

Ebitda (earnings before interest, taxes, depreciation, and amortization) was up 41 per cent quarter on quarter (QoQ) at Rs 147.9 crore, while margins improved 200 basis points (bps) to 31.0 per cent in Q1FY22 from 29.0 per cent in Q4FY21.Consolidated revenue grew 31.6 per cent QoQ at Rs 477.50 crore from Rs 362.70 crore in previous quarter.

The company said growth during Q1FY22 was on account of contribution from ECMO and Heart & Lung Transplant program, which has doubled compared to previous quarter, and on higher occupancy of Covid patients. In addition, Vaccination revenue, RTPCR tests, Covid home care and Covid hotel packages also contributed significantly, it said.

While critical surgeries like transplants, trauma etc continued elective surgeries were impacted. However, the company have now seen the OP footfalls coming back to near normal and IP numbers are picking up too significantly. With strong push on Vaccinations by the Government, the management is confident that this should come back to near normal soon notwithstanding the sporadic spikes being reported in few parts of the country.

KIMS is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of the number of patients treated and treatments offered. It operates nine multi-specialty hospitals under the ‘KIMS Hospitals’ brand, with an aggregate bed capacity of 3,064, including over 2,500 operational beds as of March 31, 2021.

At 11:23 am, the stock was trading at Rs 1,290, up 10 per cent on the BSE, as compared to a 0.53 per cent decline in the S&P BSE Sensex. Trading volumes on the counter rose over 20-fold with a combined 2.37 million equity shares having changed hands on the NSE and BSE. Business Standard