- 30 May 2024
- ICICI Securities
HCG Q4FY24 RESULTS- DECENT NUMBERS WITH BETTER-THAN-EXPECTED MARGINS
HCG - 559 Change: -6.85 (-1.21 %)News: Revenues grew 12% YoY to ₹ 493 crore, slightly below our expectation of ₹ 503 core. Established centres grew 11% YoY to ₹ 352 core whereas Emerging centres grew 15% to ₹ 125 core. EBITDA grew 21% YoY to ₹ 92 crore and EBITDA margins stood at 18.6% (our expectation 17.3%). We wait for company’s presentation which provides more granularity. Overall ARPOB was at ₹ 42741, up 8% YoY. Overall occupancy however was down to 56% against 59% in Q4FY23.
Views: Occupancy was down YoY as the company added 90 beds since last year (current count- 1923 beds,) On the ARPOB front while the ARPOB growth at Established centres was 5%, for Emerging centres it was 12%. EBITDA. We continue to monitor progress on ARPOB and occupancies improvement especially at the new centres. We expect ROCE at the new centres to improve in the due course. With growing cancer instances and better diagnosis mechanism, we believe the company is well poised to tap the incremental opportunities.
Impact: Positive