Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
- 24 Oct 2024
- ICICI Securities
-
Share
-
-
-
-
-
ASTER DM Q2FY25 – STRONG NUMBERS DRIVEN BY IMPROVED PARAMETERS
News: Revenues grew 16% YoY to ₹ 1086 crore aided by incremental operational beds, an increase in occupancy and growth in ARPOB. While bed count (operational) increased by 148 beds to 3689, occupancy increased 2% to 72% and ARPOB grew 11% to 43000. EBITDA grew 47% YoY to ₹ 220 crore, driven by strong margins profile at matured hospitals (more than 6 years) which stood at ~26%. Overall company margins stood at 20.2%. Improvement in payor profile especially the insurance business (up 300 bps YoY to 30%) also helped in margin improvement.
Views: Post the GCC business demerger, the management has freedom to expand the India business and improve the margins profile (still lower than the pan-India players). The ARPOB is at ₹ 43000 which the company intends to improve with better payor and case mix. From 4994 beds (total capacity) the company intends to reach 6500 beds count by FY27. It also plans to expand the labs and pharmacy business which is currently 6% of the revenues. The expansion is likely to be funded mainly by the residual cash left after the dividend paid post the de-merger. Although the management has quashed rumours regarding merger with Care Hospitals, we expect confirmation on the same in the Concall.
Impact: Positive