- 10 Feb 2023
- ICICIdirect Research
HEALTHCARE GLOBAL REVENUES IN LINE BUT SLIGHT MISS ON MARGIN FRONT
HCG - 573 Change: 22.70 (4.13 %)News: Revenues grew 1.1% QoQ to Rs 424.7 crore, driven by growth in volumes and patient count across modalities. Revenues from matured centres came in at Rs 306.5 crore (-0.81% QoQ) whereas Rs 101.5 crore from emerging centres (up 7.41% QoQ). EBITDA grew 1.1% QoQ to Rs 75.5 crore. EBITDA margins remained flat QoQ at 17.8% amid good operational leverage. Adjusted net profit increased 2.2% QoQ to Rs 7.5 crore. Overall ARPOB was at Rs 37,014 up 0.27% QoQ. Overall AOR remained stable QoQ at 65.7%
Views: Numbers continued to improve on the revenue front largely supported by regions like North & East India. Larger markets like Karnataka and Gujarat also showed an improvement. During the quarter, its international operations grew at a decent pace. HCG remains a compelling play on the oncology treatment theme in India. HCG is now focused on digital transformation, cost optimisation and efficiency enhancement, growth of medical value travel, and inorganic acquisitions, which should augur well in the near future
Impact: Positive