Narayana Hrudayalaya on Monday (9 March 2020) informed stock exchanges that it will stop operating Chinmaya Narayana Superspeciality Centre in Bangalore from 1 April 2020.
Narayana Hrudayalaya (NHL) under a contract with Karnataka Chinmaya Seva Trust had set up a Heart Centre named Chinmaya Narayana Superspeciality Centre in Chinmaya Mission Hospital, Bangalore in November 2009 on a revenue sharing basis. NHL has since been running and operating the Heart Centre for treatment of cardiac patients.
Karnataka Chinmaya Seva Trust has now indicated its desire to operate the Heart Centre on its own and expressed its intent to not renew the contract on its expiry on 31 March 2020. NHL has agreed to the non-extension of the contract and the operations will be stopped from 1 April 2020.
The Bangalore unit would contribute around 0.4% (Rs 12.50 crore) to the group revenue and 0.6% to group EBITDA (Rs 2.30 crore) in FY 2019-20, Narayana Hrudayalaya notified after the trading hours on Monday, 9 March 2020.
NHL's consolidated net profit surged 147.7% to Rs 31.38 crore on a 7.3% increase in net sales to Rs 785.19 crore in Q3 December 2019 over Q3 December 2018.
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NHL operates a network of hospitals, diagnostic centers, clinical centers or test laboratories. The company operates through medical and healthcare services business segment. The firm offers medical, surgery, and diagnostics and support services.
Shares of NHL were down 2.13% to Rs 307.75. It traded in range of Rs 307.75 to Rs 319.50 so far.
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