Narayana Hrudayalaya incorporates subsidiary

As a part of its expansion plans, Narayana Hrudayalaya, a domestic chain of multi-speciality hospitals, has incorporated a wholly owned subsidiary –NH Integrated Care Pvt Ltd– with a paid-up capital of Rs 5 lakh.

Narayana Hrudayalaya has subscribed to 50,000 equity shares of Rs 10 of the new company that will provide services in the field of health and wellness management, the company said in an exchange filing on Tuesday.

According to the management, the company plans to continue with its aggressive capex plan for next 2-3 years with a guided capex of Rs.10 billion annually in FY23E and FY24E. The capex spend would be towards its core and high performing regions such as Bangalore, Kolkata and Cayman which is expected to enhance growth visibility.

At present, Narayana Hrudayalaya has over 1,370 operational beds that includes recently acquired 100 beds of Bengaluru based Orthopedic and Trauma hospital in Health City. Narayana Hrudayalaya has additional land available in the said hospital. The company has been expanding its services across its hospital units.

Prabhudas Lilladher Sheth, a registered a stock broking firm in a report said that Narayana Hrudayalaya’s profitability across India and Cayman was strong in H1FY23 (up 44 per cent YoY) and it expects this growth momentum to sustain.

Narayana in September signed a business transfer agreement with Shiva and Shiva Orthopaedic Hospital to acquire its orthopedic and trauma hospital with around 100 operational beds at Narayana Health city, Bengaluru for an aggregate cash consideration of Rs 200 crore.

In 2017, the Bengaluru-based hospital chain had acquired Gurgaon-based multi-speciality hospital NewRise Healthcare Pvt. Ltd from drug maker Panacea Biotech Ltd for Rs180 crore.

Narayana Hrudayalaya’s annual revenue rose 43.1 per cent, in the last year to Rs 3,735.9 Crores. Its sector’s average revenue growth for the last fiscal year was 33.0 per cent . further, the company’s annual net profit rose 2,490.5 per cent in the last year to Rs 341.9 crore. Its sector’s average net profit growth for the last fiscal year was 254.3 per cent. Business Today