Narayana Hrudayalaya rallies 11% to hit a record high on strong Q4 results

The company reported the highest-ever revenue and profitability in Q4FY23, as well as for FY23, which is attributed to increased patient footfalls along with improvements in speciality and payor mix

Shares of Narayana Hrudayalaya rallied 11 per cent to hit an all-time high of Rs 855 in Monday’s intra-day trade, after the company more-than-doubled its consolidated profit after tax (PAT) at Rs 173.2 crore in the March quarter (Q4FY23). The company had posted PAT of Rs 69.0 crore in a year ago quarter. On sequential basis, PAT increased 3.9 per cent.

The stock surpassed its previous high of Rs 816.20, which it had touched on March 20, 2023. At 12:36 PM; it quoted 6 per cent higher at Rs 820.75, as compared to 0.28 per cent rise in the S&P BSE Sensex.
 

Meanwhile, the company's consolidated revenue grew 29.9 per cent YoY and 8 per cent quarter-on-quarter (QoQ) at Rs 1,221 crore. The company said it reported highest-ever revenue and profitability in Q4FY23, as well as for the financial year FY23, which is attributed to increased patient footfalls along with improvements in specialty and payor mix.

Moreover, consolidated earnings before interest, taxes, depreciation and amortization (Ebitda) margin improved to 23.8 per cent from 19.7 per cent in Q4FY22.

The management said that the improvement in performance was supported by growth in business across company’s flagship units, other hospitals, and newer hospitals, in addition to increased contribution of international patients. The company’s Cayman business demonstrated continued growth and contributed to the overall performance.

Analysts at ICICI Securities said that the beat on margins attributed to increased patient footfalls along with improvements in case mix and payor mix which led to ~ 5 per cent QoQ average revenue per occupied bed (ARPOB) improvement to ~37,000.

“We continue to monitor progress on the capex front, both in India and at HCCI (Cayman) besides margins trajectory,” the brokerage firm said.

On segmental front, generics business performance improved to 14.5 per cent QoQ to Rs 1,001 crore. Custom synthesis, on the other hand, grew 17.1 per cent QoQ to Rs 799.8 crore, whereas nutraceuticals business revenues came in at Rs 150 crore showing flat growth.

Narayana Hrudayalaya is one of the leading healthcare service providers in India, operating a chain of multispecialty, tertiary, and primary healthcare facilities. The company has a network of 19 hospitals and 4 heart centers across India along with overseas presence at Cayman Islands, with over 5,880 operational beds and a capacity of over 6,180 beds.