- 11 Aug 2022
- ICICIdirect Research
Healthcare Global reports robust performance amid traction across HCG centresHCG - 260 Change: -3.95 (-1.50 %)
News: Healthcare Global’s (HCG) revenues grew 26% YoY to Rs 408 crore driven by 23% YoY growth in existing HCG centres to Rs 298 crore and 34% YoY growth in new HCG centres to Rs 93 crore. EBITDA margins improved 165 bps YoY to 17.7% while EBITDA grew 39% YoY to Rs 72 crore. Adjusted net profit for the quarter was at Rs 6 crore against loss of Rs 10 crore in Q1FY22.
View: HCG’s revenues were a beat on our estimates while margins were marginally lower than expected. Financial performance of HCG has improved over last few quarters as revenues have increased by ~1.7x since Q2FY21 while EBIDTA in absolute terms have grown by 2.4x times over the last eight quarters. HCG is now focussed on digital transformation, cost optimisation and efficiency enhancement, growth of medical value travel and inorganic acquisitions. HCG, with its integrated, one-stop-solution and focused model, is well poised to capture the growing potential with pan- India focus on cancer therapy.