The company recorded a net profit of Rs 24.7 crore for quarter ending June 30, 2019 before impact of Ind AS 116
Aster DM Healthcare, a private healthcare service providers recently announced its financial results for the quarter ended June 30, 2019. A strong focus on delivering quality healthcare through diversified healthcare offerings and enhanced efficiencies saw Aster DM Healthcare continue to grow strongly.
Effective April 1, 20 19 , the Group adopted Ind AS 116 ‘Leases’, applied to lease contracts existing on April 1, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted. The effect of this adoption has resulted in decrease in other expenses, increase in interest expenses (included under finance cost) and an increase in depreciation and amortisation expenses for continuing operations.
The company recorded a net profit of Rs 24.7 crore for the quarter ending June 30, 2019 before the impact of Ind AS 116. This represents a year-on-year increase of 21 per cent from a PAT of Rs 20.4 crore registered in the same quarter last year.
Revenue from operations for Q1 FY20 recorded an increase of 14.3 per cent reaching Rs 2,028.6 crore on sustained organic growth from its existing operations that includes 25 hospitals, 115 clinics and over 231 pharmacies in nine countries, including India.
Financial Performance Highlights
Performance Review for Q1FY20 vs. Q1FY19
- Revenue from operations improves by 14.3 per cent to Rs 2,028.6 crore compared to Rs 1,774.6 crore.
- EBITDA (excluding other income and before Ind AS 116) increases by 32.5 per cent Y-o-Y to Rs 164.2 crore compared to Rs 123.9 crore. EBITDA post Ind AS 116 impact is at Rs 223.7 crore.
- PAT (adjusted for exceptional income in previous year) increases to Rs 24.7 crore compared to Rs 20.4 crore. PAT post Ind AS impact is at Rs 10 crore.
Commenting on the performance for Q1FY20, Dr Azad Moopen, Chairman, Aster DM Healthcare said, “We are happy with our performance this quarter. The first two quarters of the financial year are always slow because of the holiday season in the GCC. However when compared to the corresponding quarter last year our growth has been strong. Our hospitals business continues to grow and is very robust. We expect double digit growth in our hospitals business in the coming year. Our clinics and pharmacies also continue to perform well. We are well on track with our growth plans, having announced a new 230+ bedded Aster RV hospital in Bengaluru this quarter. All hospitals that have been completed in the previous year are ramping up well and can be expected to achieve break even soon.”
Segmental Performance
Revenues increased by 19 per cent to Rs 689 crore in Q1FY20 from Rs 580 crore in Q1FY19. EBITDA (excluding other income and before impact of Ind AS 116) increased by 13 per cent from Rs 73 crore in Q1FY19 to Rs 83 crore in Q1FY20. The EBITDA margin was at 12.1 per cent in Q1FY20 compared to 12.7 per cent in Q1FY19. This reduction was on account of initial year losses of new hospitals operational from second quarter of FY 19.
Clinics
Revenues for GCC clinics increased by 7 per cent to Rs 483 crore in Q1FY20 from Rs 453 crore in Q1FY19. EBITDA for GCC clinics increased 5 per cent from Rs 54 crore in Q1FY19 to Rs 56 crore in Q1FY20. EBITDA margins stood at 11.7 per cent in Q1FY20 compared to 11.8 per cent in Q1FY19.
Pharmacies
Revenues increased by 14 per cent to Rs 540 crore in Q1FY20 from Rs 472 crore in Q1FY19. EBITDA increased 13 per cent from Rs 29 crore in Q1FY19 to Rs 32 crore in Q1FY20.