HealthCare Global Enterprises Ltd. reports Q3 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 ("Q3") and nine months ("YTD") ended December 31, 2020 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 December 31st, 2020

- Consolidated Income from Operations ("Revenue") was INR 2,740 mn as compared to INR 2,779 mn in the corresponding quarter of the previous year, reflecting a year-on-year decline of 1.4% and a quarter-onquarter growth of 10.5%

- Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes ("EBITDA") was INR 437 mn, as compared to INR 482 mn in the corresponding quarter of the previous year, a decline of 9.4% year-on-year and a growth of 28.3% quarter-on-quarter

- Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes ("Operating EBITDA"), was INR 378 mn, as compared to INR 457 mn in the corresponding quarter of the previous year, a decline of 17.3% year-on-year and a growth of 26% quarter-on-quarter

- Operating EBITDA for existing centers was INR 399 mn, a growth of 21.3% quarter-on-quarter, reflecting an Operating EBITDA margin of 18.2%

- New Center loss was INR 21 mn, as compared to loss of INR 57 mn in the corresponding quarter of the previous year, a reduction of 63.2% year-on-year and 27.6% quarter-on-quarter

- Consolidated Profit after Taxes and Minority Interest ("PAT")(4) was a loss of INR 293 mn, as compared to loss of INR 228 mn in the corresponding quarter of the previous year

Commenting on the results, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd. said, "We are pleased to report Q3 and YTD FY21 results with strong recovery in performance across the board. We are entering an exciting phase for HCG with our leadership team strengthened with joining of Raj as CEO and several of our new centers already over the tipping point and moving towards profitability. We welcome initiatives by the government to support COVID vaccination program and increased healthcare expenditure as the industry gains much deserved prominence in India's journey of becoming an economic superpower in the coming years. With combined strength of HCG's presence, brand and balance sheet, we are at an inflexion point and will continue to be at the forefront in delivering high quality cancer care and outcomes to patients, at scale, on panIndia basis. We appreciate the support of all our stakeholders without which this vision cannot be realised."

Mr. Raj Gore, CEO HealthCare Global Enterprises Ltd., added, "HCG's oncology-focused network of hospitals, uniquely positions us to address the growing cancer burden in India holistically. Not only have we demonstrated great resilience amidst the tough COVID times, but also we have now entered a period of consolidation with completion of capex and focus shifting to driving profitability and improving efficiencies. We are emerging as the largest private oncology player in Maharashtra with Borivali achieving break-even and other centers ramping-up towards profitability. With a majority of our other regions delivering revenue growth y-o-y basis, we expect to see robust growth in EBITDA and operating cash flows in the coming quarters. HCG will continue to strengthen its dominant leadership in oncology, fertility and precision diagnostics, and we remain committed to driving long-term value creation for all our stakeholders."

Shares of HealthCare Global Enterprises Ltd was last trading in BSE at Rs.151.85 as compared to the previous close of Rs. 154.1. The total number of shares traded during the day was 4743 in over 396 trades.

The stock hit an intraday high of Rs. 155.85 and intraday low of 150.1. The net turnover during the day was Rs. 727078.

Source : Equity Bulls

Keywords