Narayana Hrudayalaya, a multi-speciality hospital chain, reported a whopping 279 percent year-on-year jump in profit while revenue increased 18.3 percent in the quarter ended March 2019.
Kesavan Venugopalan, CFO and Viren Shetty, ED & group COO of Narayana Hrudayalaya, spoke to CNBC-TV18 about the company’s financial results and growth outlook.
Shetty said that they believe double-digit growth is sustainable for the year going forward.
“The 3 oldest hospitals in our network; the 2 in Bengaluru and 1 in Kolkata have consistently been growing but the big swing that is noticed is our big range hospitals; our hospital in Ahmedabad, Raipur, Shimoga have swung from negative into positive territory and that is contributed to the biggest change to EBITDA,” Shetty said.
On the average revenue per bed, Venugopalan said, “Price revision is the last lever which we apply in Narayana Hrudayalaya. So to that extent, the average revenue per occupied bed (ARPOB) will follow the inflationary trend what we could see in the market. Otherwise, we derive our ARPOB increases purely by speciality mix and other categories mix which we tend to influence in a positive manner.”
On the debt front, he said, “Our current net debt is around Rs 713 crore. We were at around Rs 768 crore net debt in FY18. Last year there was a spurt because of our acquisition of Cayman, the other shareholding which we acquired. We see that the borrowing increase will happen in a very narrow range and we expect that there might be a very narrow range increase with respect to borrowing for at least FY20.”- CNBC TV18