Revenue for Q2 FY22 of INR 4,200 Million, a growth of 19.3% (y-o-y) and 2.9% (q-o-q)
Revenue for H1 FY23 of INR 8281 Million, a growth of 22.7% (y-o-y)
EBITDA for Q2 FY23 of INR 810 Million, a growth of 28.0% (y-o-y) and 7.2% (q-o-q)
EBITDA for H1 FY22 of INR 1,566 Million, a growth of 39.6% (y-o-y)
Bengaluru, November 11, 2022: HealthCare Global Enterprises Limited (“HCG”), the leader in India in speciality healthcare services focused on oncology and fertility today announced its financial results for the quarter and half year ended September 30, 2022.
Highlights for quarter ended September 30th, 2022
- Revenue from Operations stands at INR 4,200 mn as compared to INR 3,520 mn in the corresponding quarter of the previous year, reflecting a year-on-year growth of 19.3%
- Adjusted EBITDA stands at INR 810 mn, as compared to INR 633 mn in the corresponding quarter of the previous year, a growth of 28.0% year-on-year and 7.2% quarter-on-quarter
- Reported EBITDA was INR 747 mn, as compared to INR 617 mn in the corresponding quarter of the previous year, a growth of 21.0% year-on-year and 3.5% quarter-on-quarter
- Revenue from Matured centers stands at INR 3090 mn, a growth of 19% year-on-year
- EBIDTA from Matured centers stands at INR 777 mn, a growth of 20% year-on-year
- Revenue from Emerging Centers stands at INR 945 mn a growth of 26% year-on-year
- EBIDTA from Emerging Centers stands at INR 95 mn a growth of 187% year-on-year
Highlights for Half Year ended September 30th, 2022
- Revenue from Operations stands at INR 8,281 mn as compared to INR 6,751 mn in the corresponding half year of the previous year, reflecting a year-on-year growth of 22.7%
- Adjusted EBITDA stands at INR 1,566 mn, as compared to INR 1,211 mn in the corresponding half year of the previous year, a growth of 39.6% year-on-year
- Reported EBITDA was INR 1,469 mn, as compared to INR 1,130 mn in the corresponding half year of the previous year, a growth of 30.0% year-on-year
- Revenue from Matured centers stands at INR 6,068 mn, a growth of 21% year-on-year
- EBIDTA from Matured centers stands at INR 1,527 mn, a growth of 22% year-on-year
- Revenue from Emerging Centers stands at INR 1,874 mn a growth of 30% year-on-year
- EBIDTA from Emerging Centers stands at INR 195 mn a growth of 379% year-on-year
Operational Highlights for Q2 FY22*
- Overall ARPOB stood at Rs. 36,914 vs. Rs. 36,437 in Q2 FY22, a growth of 1.3%
- Overall AOR stood at 66.4% vs. 56.1% in Q2 FY22, a rise of 1,030 bps
- Mature CENTERS
o ARPOB stood at Rs. 39,684 vs. Rs. 36,667 in Q2 FY22, a growth of 5.4%
o AOR stood at 65.0% vs. 57.6% in Q2 FY22, a rise of 740 basis points
- EMERGING CENTERS
o ARPOB stood at Rs. 30,145 vs. Rs. 33,942 in Q2 FY22, a de-growth of 11.2%
o AOR stood at 69.9% vs. 51.8% in Q2 FY22, a rise of 1,810 bps
- RoCE (H1FY23 Annualized)
o RoCE for Mature centers stood at 20.0% vs. 15.4% in FY22, a rise of 460 basis points. RoCE pre-corporate allocations stands at 24.8%
o RoCE for emerging centers stood at -4.9% vs. -8.3% in FY22, an improvement of 340 bps. RoCE pre-corporate allocations stands at -0.9%
Other Business Updates For Q2 FY23
- Several regions delivered high double-digit revenue growth on yearly basis on the back of gradual unlocking of the economy
o North India Region showed exemplary growth of 205% YoY whereas East India region also grew by 33% YoY
o Our larger markets like Karnataka and Gujarat grew by 26% and 20% YoY respectively
o Rajkot grew by 80%, Ranchi grew by 60% & Mumbai grew by 30%
- Milann Revenues witnessed a growth of 15.4% and stood at Rs. 165.5 mn in Q2FY23
o New registrations grew by 13.6% for Q2FY23 on Y-o-Y basis & IVF cycles grew by 9.7%
o Continued effort on digital campaigns have resulted growth in new registrations
- New Digital Initiatives introduced Patient Application for appoints, consultations, medicines and patient engagement.
o Cloud Telephony for seamless tracking of offline leads
o CRM for 360°patient view and better lead management
o E-Prescription doctor’s platform for access to patient’s medical history
o Business Intelligence for real time insights into the business
- Key Initiatives which will drive higher Margins going ahead
o Productivity Enhancement
o Cost Rationalization
o Pricing Efficiencies
o Manpower Optimization
* 72% of the total capacity beds are operational; AOR 57% on capacity beds
Commenting on the results, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd. said, “HCG chain of dedicated cancer centers is consistently moving up the value chain of high-quality clinical care powered by high-end technology. Our Bangalore COE, which is one of the India’s largest dedicated cancer care Hospitals has recently launched India’s first Varian Ethos
therapy, an Artificial Intelligence (AI)-driven holistic solution designed to increase the capability, flexibility, and efficiency of radiotherapy. It uses augmented intelligence, a convergence of people and artificial intelligence (AI) working together for better outcomes & higher success rates while maintaining the quality of life. This game-changing radiation therapy personalizes cancer care using adaptive intelligence based on the patient’s anatomy and the position of the tumor at the time of treatment.
At HCG, we are equally focused and engaged in academics and research, we are very proud to announce that we have over 170 fellowship programs and different DNB programs in oncology, not only in Bangalore, but also in Tier 2, and Tier 3 cities. In research, for October, we have had nine new publications, and a significant number of them have been podium presentations, till date we have published more than 750 research papers.
Our focus has been on Oncology in conjunction with local partners, has helped us built a strong legacy as a World-class Oncology Treatment Center & Institution across India. “
Mr. Raj Gore, CEO, HealthCare Global Enterprises Ltd. added, “We are happy to report another strong financial performance for quarter ended September 2022. Our consolidated revenue for Q2FY23 stood at Rs. 4,200 mn, a growth of 19% on Y-o-Y basis. Our focused efforts on cost rationalization coupled with strong revenue growth have resulted in margin expansion of 230 bps, leading to adjusted EBITDA margin of 18.9% in H1FY23. Adjusted EBIDTA for H1FY23 stood at Rs. 1,566 mn as compared to Rs. 1,121 mn in H1FY22, a growth of 40% on y-o-y basis. As a result of consistent revenue growth & margin expansions our reported PAT (excl. Exceptional items) has increased to Rs. 74 Mn for Q2FY23 as compared to Rs. 8.3 Mn in Q2FY22.
While our mature centers continue to show higher than the market growth rate, the growth strategies implemented for the emerging centers have started showing promising results. Jaipur center has more than doubled its revenue whereas Kolkata and Mumbai have grown by 40% & 30% respectively on a Y-o-Y basis in the current quarter.
Our differentiated and specialized cancer care along with strong brand positioning have enabled us to attain leadership position in 13 out of 18 locations where we are present. Going forward, we will continue to invest in HCG brand to make it the preferred choice for cancer patients across India. We are optimistic of improving our market share & strengthening our leadership position”