HealthCare Global Enterprises Ltd reports Q2 FY21 results

HealthCare Global Enterprises Limited ("HCG"), the leader in India in speciality healthcare services focused on oncology, fertility and precision diagnostics today announced its financial results for the quarter ("Q2") and six months ("H1") ended September 30 for fiscal year ("FY21").

Effective 1 April 2019, the Company has adopted IND AS 116 'Leases' standards, applied to lease contracts existing on 1 April 2019 and all financials are as per IND AS 116.

Highlights for quarter ended September 30th, 2020

- Consolidated Income from Operations ("Revenue") was INR 2,479 mn as compared to INR 2,785 mn in the corresponding quarter of the previous year, reflecting a year-on-year decline of 11% and a quarter-onquarter growth of 28%

- Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes ("EBITDA") was INR 340 mn, as compared to INR 471 mn in the corresponding quarter of the previous year, a decline of 28% year-on-year and a growth of 54% quarter-on-quarter

- Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes ("Operating EBITDA"), was INR 300 mn, as compared to INR 456 mn in the corresponding quarter of the previous year, a decline of 34% year-on-year and a growth of 55% quarteron-quarter

- Operating EBITDA for existing centers was INR 329 mn, a growth of 29% quarter-on-quarter, reflecting an Operating EBITDA margin of 17%

- Loss from new centers was INR 29 mn, as compared to loss of INR 48 mn in the corresponding quarter of the previous year, a reduction of 40% year-on-year and 52% quarter-on-quarter

- Consolidated Profit after Taxes and Minority Interest ("PAT")(4) was a loss of INR 223 mn, as compared to loss of INR 223 mn in the corresponding quarter of the previous year

Commenting on the results, Dr. B.S. Ajaikumar, Chairman and CEO, HealthCare Global Enterprises Ltd. said, "We report Q2 FY21 results with continued resilience amidst an environment struck with economic and social uncertainty brought about by the COVID pandemic. Strong performance of oncology centers in Tier 2/3 towns, improvements across the board at our new centers across Mumbai, with Borivali almost at the verge of operational break-even at unit level, and bounce back of Kolkata center, demonstrates that we have not only adapted well to the challenges but also emerged stronger, particularly in our domain. The depth of our operating systems and internal efficiencies have allowed us to uphold our mission of maintaining continuity and quality of care for oncology patients across the country, while minimising revenue and cost disruptions to the extent possible. This is a testament of sustainability of our business model fundamentals, which includes focused delivery of comprehensive cancer care, creating last-mile access on a pan-India basis, while being at the forefront of clinical, technological and digital innovations in the industry. With substantial deleveraging of our balance sheet, reduction in losses across new centers, on y-o-y & q-o-q basis, and focus on free cash flow generation, we are excited to move closer to our inflexion point that augurs profitability and return accretive phase for the company. HCG will continue to strengthen its dominant leadership in oncology, fertility and precision diagnostics, with a dedicated team and Pan-India presence, and is committed towards value creation and social impact for all our stakeholders."

Shares of HealthCare Global Enterprises Ltd was last trading in BSE at Rs.120 as compared to the previous close of Rs. 120.7. The total number of shares traded during the day was 1390 in over 87 trades.

The stock hit an intraday high of Rs. 122 and intraday low of 119.4. The net turnover during the day was Rs. 168048.

Source : Equity Bulls

Keywords