In This Article:
-
Revenue Growth: 18% increase in India business revenue, reaching INR2,088 crore in H1 FY25.
-
Operating EBITDA: 44% growth to INR410 crore with margins expanding to 19.6% in H1 FY25.
-
Net Profit: Doubled to INR171 crore in H1 FY25 compared to INR91 crore in H1 FY24.
-
Bed Capacity: Total capacity of nearly 5,000 beds as of September 30, 2024, with plans to expand to 6,800 by FY27.
-
Occupancy Rate: Kerala cluster at 77%, Karnataka and Maharashtra cluster improved to 65%, Andhra cluster at 56%.
-
Pharmacy and Labs: 232 patient experience centers and 212 pharmacy stores; lab business revenue growth of 17% in Q2 FY25.
-
Capital Expenditure: INR1,061 crore for H1 FY25, with 68% towards capacity expansion.
-
Return on Capital Employed (ROCE): Increased to 32% for mature hospitals.
-
Material Costs: Decreased to 20.7% in H1 FY25 from 22.8% in H1 FY24.
-
Insurance Business Contribution: Increased by over 300 basis points to 30%.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Aster DM Healthcare Ltd (BOM:540975) reported robust growth in the Indian healthcare sector, driven by rising healthcare demand and increased government focus on infrastructure.
-
The company achieved a 23% CAGR in revenue and a 38% CAGR in operating EBITDA over the last five years in India.
-
Aster DM Healthcare Ltd (BOM:540975) recorded an 18% revenue growth in H1 FY25, with a significant increase in operating EBITDA margins from 16.1% to 19.6%.
-
The company is expanding its capacity with plans to add approximately 1,800 beds by FY27, enhancing its ability to meet growing healthcare demands.
-
Aster DM Healthcare Ltd (BOM:540975) is making significant progress in oncology services, introducing advanced cancer care technologies like interoperative electron radiation therapy.
Negative Points
-
The company faces risks and uncertainties related to government actions, local political or economic developments, and technological risks.
-
Despite strong performance, there is a potential risk of not meeting demand due to high occupancy rates and limited immediate bed expansion.
-
The wholesale pharmacy segment has been restructured due to logistical challenges, impacting revenue but reducing EBITDA losses.
-
The company has seen senior-level attrition in Kerala and Karnataka, though it claims this is not impacting performance.
-
Aster DM Healthcare Ltd (BOM:540975) has a high level of pledged shares due to technical reasons, which it plans to address by the end of the year.