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HealthCare Global Enterprises Ltd (NSE:HCG) Q2 FY25 Earnings Call Highlights: Robust Revenue ...

In This Article:

  • Revenue: INR553.5 crores for Q2 FY25, a 14% growth year-on-year.

  • H1 FY25 Revenue: INR1,079 crores, a 14% increase compared to H1 FY24.

  • Adjusted EBITDA: INR104.2 crores for Q2 FY25, a 21% growth year-on-year.

  • EBITDA Margin: 18.8% in Q2 FY25, up from 17.8% in Q2 FY24.

  • Pro Forma Revenue Growth: 20% including Vizag acquisition, with an EBITDA margin of 19%.

  • Oncology Business Growth: 20% growth after adjusting for the exited center in MSR, Bangalore.

  • Domestic Business Performance: Strong performance offsetting a 17% decline in international revenue.

  • Digital Channel Revenue: 14% of overall revenue in Q2 FY25, up from 4% in Q2 FY23.

  • Kolkata Imaging Center Revenue Growth: 66% increase in revenue.

  • OPD Footfalls: Increased by 9%, accounting for 18% of revenue.

  • Medical Oncology Growth: 14% increase in chemotherapy sessions.

  • LINAC Machine Utilization: 70% capacity utilization, up from 65% in the previous quarter.

  • Patient Bed Occupancy Rate: 61%.

  • Established Centers Revenue Growth: 13% year-on-year with a 20% growth in EBITDA.

  • Emerging Centers Revenue Growth: 32% increase in revenue for the quarter.

  • ARPOB Growth: Total ARPOB grew by 7.4% to INR45,188.

  • CapEx Spend: INR52 crores for the quarter, with expected CapEx of INR250 crores to INR300 crores in FY25.

Release Date: November 09, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • HealthCare Global Enterprises Ltd (NSE:HCG) reported a robust 14% year-on-year revenue growth for Q2 FY25, reaching INR553.5 crores.

  • The company's adjusted EBITDA crossed INR100 crores for the first time, showing a strong growth of 21% year-on-year.

  • HCG's oncology business experienced impressive 20% growth after adjusting for the exited center in MSR, Bangalore.

  • The company has successfully operationalized a new state-of-the-art 200-bedded comprehensive cancer care center in Ahmedabad.

  • Digital initiatives have significantly boosted patient acquisition, with digital channel revenue rising to 14% of overall revenue in Q2 FY25, up from 4% in Q2 FY23.

Negative Points

  • International revenue declined by 17% due to geopolitical challenges in markets like Bangladesh.

  • The South Mumbai center faced challenges due to a decline in international business, impacting overall performance.

  • The company incurred a loss of INR3.8 crores to INR4 crores in the South Bombay hospital for the first half of FY25.

  • There was a one-time other income of INR5 crores, which will not continue in future quarters.

  • The company is facing challenges in achieving double-digit ROCE in emerging centers, particularly in South Mumbai.