HealthCare Global Enterprises Limited (“HCG”), the leader in India in speciality healthcare services focused on oncology and fertility today announced its financial results for the quarter (“Q3”) and 9 month ended FY24.
Highlights for quarter ended December 31st, 2023
- Consolidated Income from Operations (“Revenue”) was INR 4,699 mn as compared to INR 4,247 mn in the corresponding quarter of the previous year, reflecting a year-on-year growth of 6%
- Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“Adjusted EBITDA”) was INR 826 mn, as compared to INR 773 mn in the corresponding quarter of the previous year, a growth of 8% year-on-year
- Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“Reported EBITDA”), was INR 786 mn, as compared to INR 755 mn in the corresponding quarter of the previous year, a growth of 1% year-on-year
- EBITDA for Existing centers was INR 790 mn, a growth of 1% year-on-year
- EBITDA from New centers was INR 126 mn, as compared to INR 76 mn in the corresponding quarter of the previous year, a growth of 66%
- Consolidated Profit after Taxes and Minority Interest (“PAT”) of INR 5.7 mn, as compared to INR 5 mn in the corresponding quarter of the previous year
INR million except earnings per share
| Period ended Mar’23 | Q3-FY24 | Q3-FY23 | Growth (y-o-y) | |||||
| Income from Operations | 4,699 | 4,247 | 10.6% | |||||
| Adjusted EBITDA(1) | 826 | 773 | 6.8% | |||||
| Margin (%) | 17.6% | 18.2% | ||||||
| Reported EBITDA | 786 | 755 | 4.1% | |||||
| Margin (%) | 16.7% | 17.8% | ||||||
| PBT | 111 | 113 | -2.1% | |||||
| PBT margin % | 2.4% | 2.7% | ||||||
| PAT (2) | 57 | 75 | -24.4% | |||||
| PAT margin % | 1.2% | 1.8% | ||||||
| Earnings per share (EPS) | 0.4 | 0.5 | ||||||
- Adjusted EBITDA excluding ESOPs and One time Expense
- PAT after Minority Interest
Business Updates for Q3 FY24
- Overall ARPOB stood at Rs. 42,788 vs. Rs. 37,014 in Q3 FY23
- Overall AOR stood at 58.5% vs. 65.7% in Q3 FY23
- RoCE (Q3FY24 Annualized)
- RoCE for Mature centers stood at 18.5% vs. 18.9% in Q3FY23. RoCE pre-corporate allocations stands at 22.5%
- RoCE for Emerging centers stood at -3.9% vs. -5.8% in Q3FY23. RoCE pre-corporate allocations stands at -0.8%
- Several regions delivered high double-digit revenue growth on yearly basis
- Markets like Kolkata and Borivali grew by 56% and 25% YoY respectively
- Nagpur, Ranchi & Vizag grew by 59%, 31% and 19% YoY respectively
Commenting on the results, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd.
said,
“India is at the cusp of significant demographic change leading to doubling of population aged over 60 years by 2050. Cancer incidence is expected to increase by 77% during this period. HCG, with its network of 22 Cancer Centers and expansion plans is poised to play a dominant role in serving the diagnostic and treatment needs of the forecasted demand.
HCG’s performance for the quarter serves as an evidence of its progress in advancing towards focused cancer care, where research and collaboration are the key drivers for improving patient outcomes. By leveraging these unique value propositions, we are able to provide targeted treatments such as adaptive radiotherapy and immunotherapy to our patients. Moreover, our integration of technology into patientcare processes, including computational work and Al platforms, allows us to continuously be on the leading edge of the change, creating differential in the way cancer has evolved.
At HCG, we have always embraced technology and innovation to be at the forefront of advancement in cancer care. We have consistently adopted cutting-edge solutions to ensure that we provide the highest quality healthcare to our patients. Our ability to deeply connect with patients is built on a foundation of compassion and trust that is unmatched, which is what truly sets HCG apart from others in our field. We remain committed to continue making a meaningful difference in the lives of those we serve in making Cancer a chronic disease.”
Mr. Raj Gore, CEO HealthCare Global Enterprises Ltd., added, “Our quarter performance showcased a standout 15% growth in ARPOB, a significant turnaround in Kolkata with over 50% growth, a commendable 17% growth in Mumbai and revenue mix improvement due to radiation business growth. The EBITDA in the quarter was driven by improved contribution margins, albeit partially offset by reduced operating leverage due to the festival impact in Q3.
Recent acquisitions in Nagpur and Indore have progressed in line with our plan and are rightly placed to consolidate our position. Additionally, I am happy to Introduce our cancer care app “HCG Care”—a one-stop solution for patients to navigate seamlessly from consultation to second opinions, diagnostics, pharmacy needs, homecare support, and post discharge follow-ups, ensuring a smooth and personalized journey.
As we move forward, we are confident of offering quality healthcare to our patients through integrated physical and digital health systems accompanied by advanced technology and research and more importantly make quality healthcare accessible to all.”