Krsnaa Diagnostics gains after ICRA reaffirms credit rating at 'A'

Krsnaa Diagnostics rose 1.93% to Rs 663.80 after after the credit rating agency ICRA reaffirmed the company's long-term rating at '[ICRA] A' with 'stable' outlook.

The agency has also affirmed the companys short term rating at ICRA] A1.

ICRA stated that the reaffirmation of ratings considers Krsnaa Diagnostic Limiteds (KDL/ the company) established market position in the public-private partnership (PPP) diagnostic services segment and extensive experience of the promoter in the healthcare industry.

The ratings also factor in KDLs healthy bid-win ratio for Government tenders. Coupled with the long contract tenor of 3-12 years (including renewal clauses) and captive patient footfalls (from the partnered hospitals), this ensures strong revenue visibility for the company.

 

Further, ICRA notes thatthe company is expanding its geographical presence with new contract wins in Assam, Uttar Pradesh, Maharashtra, Odisha, Rajasthan and Delhi.

The ratings consider KDLs strong financial risk profile characterised by healthy operating profit margins coupled with negative net debt position.

Krsnaa Diagnostics is a differentiated diagnostic service provider in India. It provides a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges and community health centres across India.

The diagnostics services provider had reported a 4.91% decrease in consolidated net profit to Rs 12.97 crore in Q3 FY24 from Rs 13.64 crore in Q3 FY23. Revenue from operations jumped by 34.06% year-on-year (YoY) to Rs 158.32 crore in the quarter ended 30 September 2023.

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