Aster DM Healthcare Q1 revenue up by 14% at INR 2029 crore

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The Company recorded a net profit of Rs. 24.7 crore for the quarter ending June 30, 2019 before the impact of Ind AS 116.

Highlights:

• Q1FY20 EBITDA up 32% at Rs 164 crore
• Q1FY20 PAT up 21% at Rs.25 crore
• Alisha Moopen appointed as new Deputy Managing Director
• New units ramping up quickly

Aster DM Healthcare announced its financial results for the quarter ended June 30, 2019.

A strong focus on delivering quality healthcare through diversified healthcare offerings and enhanced efficiencies saw Aster DM Healthcare continue to grow strongly.

Effective 1 April 2019 , the Group adopted Ind AS 116 ‘Leases’, applied to lease contracts existing on 1 April 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the year ended 31 March 2019 have not been retrospectively adjusted. The effect of this adoption has resulted in decrease in other expenses, increase in interest expenses (included under finance cost) and an increase in depreciation and amortisation expenses for continuing operations.

The Company recorded a net profit of Rs. 24.7 crore for the quarter ending June 30, 2019 before the impact of Ind AS 116. This represents a year-on-year increase of 21% from a PAT of Rs. 20.4 crore registered in the same quarter last year.

Revenue from operations for Q1FY20 recorded an increase of 14.3% reaching Rs. 2,028.6 crore on sustained organic growth from its existing operations that includes 25 hospitals, 115 clinics and over 231 pharmacies in nine countries, including India.

Alisha Moopen’s appointment as the Deputy Managing Director of Aster DM Healthcare was approved by the Board of Directors during their meeting on 7th August, 2019.

Financial Performance Highlights

Performance Review for Q1FY20 vs. Q1FY19

• Revenue from operations improves by 14.3% to Rs. 2,028.6 crore compared to Rs. 1,774.6 crore
• EBITDA (excluding other income and before Ind AS 116) increases by 32.5 % Y-o-Y to Rs. 164.2 crore compared to Rs. 123.9 crore. EBITDA post Ind AS 116 impact is at 223.7 crore.
• PAT (adjusted for exceptional income in previous year) increases to Rs. 24.7 crore compared to Rs. 20.4 crore. PAT post Ind AS impact is at Rs.10 crore.

Dr. Azad Moopen, Chairman, Aster DM Healthcare, said “We are happy with our performance this quarter. The first two quarters of the financial year are always slow because of the holiday season in the GCC. However when compared to the corresponding quarter last year our growth has been strong. Our hospitals business continues to grow and is very robust. We expect double digit growth in our hospitals business in the coming year. Our clinics and pharmacies also continue to perform well. We are well on track with our growth plans, having announced a new 230+ bedded Aster RV hospital in Bengaluru this quarter. All hospitals that have been completed in the previous year are ramping up well and can be expected to achieve breakeven soon.”

Segmental Performance

Revenues increased by 19% to Rs. 689 crore in Q1FY20 from Rs. 580 crore in Q1FY19. EBITDA (excluding other income and before impact of Ind AS 116) increased by 13% from Rs. 73 crore in Q1FY19 to Rs. 83 crore in Q1FY20. The EBITDA margin was at 12.1% in Q1FY20 compared to 12.7% in Q1FY19. This reduction was on account of initial year losses of new hospitals operational from second quarter of FY 19.

Clinics

Revenues for GCC clinics increased by 7% to Rs. 483 crore in Q1FY20 from Rs. 453 crore in Q1FY19. EBITDA for GCC clinics increased 5% from Rs. 54 crore in Q1FY19 to Rs. 56 crore in Q1FY20. EBITDA margins stood at 11.7% in Q1FY20 compared to 11.8% in Q1FY19.

Pharmacies

Revenues increased by 14% to Rs. 540 crore in Q1FY20 from Rs. 472 crore in Q1FY19. EBITDA increased 13% from Rs. 29 crore in Q1FY19 to Rs. 32 crore in Q1FY20.