Narayana Q3 a beat across all frontsNH - 663 Change: 3.05 (0.46 %)
News: Narayana posted strong numbers, better than our estimates across all fronts due to recovery in high-end cardiac elective work as well as international patient mix. Revenues grew 27.9% YoY to Rs.959.6 crore. On the EBITDA front, margins improved 425 bps YoY to 18.2% amid change in case mixed towards higher margins elective surgeries. Subsequently, EBITDA grew 66.8% YoY to Rs.175 crore while adjusted PAT for the quarter was at Rs.97.5 crore with 138.9% YoY growth.
Views: Narayana’s Indian operations posted strong numbers led by flagship hospitals amid international patients-mix rising to 6% in Q3FY22 from 1% in Q2FY22. The India performance was further boosted by momentum in operations at Cayman Islands. Margin performance has improved on the back of lower consumable expense (due to non-Covid case mix) and lower manpower expenses (due to restructuring oriented towards variables). 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 asset-right model and affordability philosophy.