Narayana Hrudayalaya (NH) Q1 24/25 earnings summary

Executive summary

• Achieved record consolidated revenue of INR 13,410 million in Q1 FY25, up 8.7% year-on-year, with EBITDA at INR 3,274 million (24.4% margin) and PAT at INR 2,015 million (15.0% margin), despite seasonal headwinds.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with a limited review report by auditors and adoption of amended Code of Conduct for Insider Trading.

• Notable clinical achievements included advanced robotic surgeries and innovative procedures across multiple hospitals.

• New Health City hospital in Camana Bay inaugurated, with patient inflow expected before end of Q2; strategic focus on organic and inorganic growth in India and overseas.

Financial highlights

• Consolidated EBITDA reached INR 3,274 million, margin at 24.4%; PAT at INR 2,015 million; consolidated net profit margin at 15.03%.

• Group cash and liquid investments at INR 13.2 billion; gross borrowing at INR 14.75 billion; net debt at INR 1.55 billion as of June 30, 2024.

• Net debt-to-equity ratio at 0.05 as of June 30, 2024.

• Ind AS 116 increased EBITDA by INR 148.7 million and decreased PAT by INR 19 million for Q1 FY25.

• Tax rate for Q1 FY25 at 13%, up from 10.6% in Q1 FY24.

Outlook and guidance

• Expect organic growth in the short term, with next major inflection point tied to new capacity coming online in 3-4 years.

• Continued focus on digital transformation, capacity expansion, ESG initiatives, and new health insurance subsidiary launched in June 2024.

• No forward-looking guidance on payer mix or revenue growth percentages.