- 12 Nov 2021
- ICICIdirect Research
Healthcare Global: Q2 results show growth in revenues with better marginsHCG - 319 Change: 2.60 (0.82 %)
News: Healthcare Global’s (HCG) Q2FY22 revenues grew 8.9% QoQ to Rs.352 crore while EBITDA margins improved 151 bps QoQ to 17.5%. Ensuing, EBITDA grew 19.2% QoQ to Rs.61.7 crore. The company has reported exceptional income of Rs.140.1 crore due to gain from selling its investment in Strand Life Sciences. Adjusted net profit for the quarter stood at Rs.4.8 crore against loss of Rs.3.9 crore in Q1FY22. Company has posted a positive bottom line after a gap of 13 quarters.
Views: HCG posted a better than expected Q2 result on many fronts. Growth in revenues were accompanied by better margins and considering normalization of OPD/IPD inflow is likely to improve operational leverage further going forward. 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. However, weaker return ratio profile still remains a key concern for the stock. We will come out with further update post management conference call.