- 10 Aug 2022
- ICICIdirect Research
Narayana Hrudayalaya reports revenue uptick in Q1 amid normalcy in operationsNH - 745 Change: -0.40 (-0.05 %)
News: Narayana quarterly result was in-line with I-Direct estimates. Revenues grew 10% QoQ to Rs 1033 crore with Hospitals growing by 10% QoQ and Heart Centre revenues growing by 14% QoQ while Cayman Island revenues declined by 7% QoQ to US$22.7 million. On the EBITDA front, margins were flat QoQ at 18.6% while EBITDA grew 10% QoQ to Rs 192 crore. Profit for the quarter was up 60% QoQ to Rs 111 crore mainly due to lower tax and interest expense.
View: Narayana’s Indian operations witnessed full normalized quarter post Covid disruptions in Q4. The margin performance has remained robust amid better operating leverage from hospitals. The improvement in numbers over the last few quarters is on the back of judicious case mix identification (more focus on oncology, transplants and non-invasive procedures). We continue to believe in the long term prospects of the company on the back of an asset-right model and affordability philosophy.