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  • 09 Feb 2022
  • ICICIdirect Research

ASTER REPORTS STRONG QUARTER, DRIVEN BY HIGHER FOOTFALLS

ASTERDM - 480 Change: -3.50 (-0.72 %)

News: Revenues grew 18.9% YoY to Rs.2649.6 crore driven by 34.3% YoY growth in the India business to Rs.618 crore and 13.2% YoY growth in GCC business to Rs.2113 crore. In GCC, Hospitals grew 8.4% YoY to Rs.868 crore, Clinics grew 18.8% YoY to 637 crore and Pharmacy grew 14.9% YoY to 608 crore. EBITDA margins was steady YoY at 15% while EBITDA grew 21.1% YoY to Rs.397.1 crore. Subsequently, net profit increased 60.5% YoY to Rs.148.3 crore. Delta vis-à-vis EBITDA was mainly due to higher other income and lower interest and tax expenditure.

Views: Aster DM posted good set of numbers with revenues being I-direct estimates but margins were a miss mainly due to YoY decline in GCC Hospitals ARPOB. With GCC and India operations being mostly normalised Aster’s better performance is reflected in significant improvement in both out-patient and in-patient numbers at the hospitals and higher footfalls across the pharmacies and clinics. Aster owns a unique business model among Indian healthcare services providers with strong established presence in GCC and India. We are positive on Aster’s integrated business model and Aster’s growth strategy for India to add brownfield facilities with low capex investment but high potential opportunity. We expect gradual margins and RoCE improvement on the back of higher occupancy and capacity optimisation in newer assets.

Impact: Positive