Consolidated income from operations was Rs2,785 mn compared to Rs2,453 mn in corresponding quarter of previous year, reflecting y-o-y increase of 13.5 per cent
HealthCare Global (HCG), recently announced its financial results for the quarter (Q2) and six months (H1) ended September 30, 2019 for fiscal year (FY20).
Effective as of April 1, 2019, the company has adopted IND AS 116 ‘leases’ standards, applied to lease contracts existing on April 1, 2019. The effect of this adoption have not been retrospectively adjusted for the year ended March 31, 2019 and previous period financials are not comparable.
Highlights for quarter ended September 30, 2019
- Consolidated income from operations (revenue) was Rs2,785 mn as compared to Rs2,453 mn in the corresponding quarter of the previous year, reflecting a year-on-year increase of 13.5 per cent.
- Consolidated profit before Depreciation and Amortisation, Finance Costs, Exceptional Items and Taxes (EBITDA) was Rs471 mn (Rs340 mn excluding IND AS116 adjustment), as compared to Rs358 mn in the corresponding quarter of the previous year.
- Consolidated Profit Before Other Income, Depreciation and Amortisation, Finance Costs, Exceptional Items and Taxes (Operating EBITDA), was Rs 456 mn (Rs 325 mn excluding IND AS 116 adjustment), as compared to Rs335 mn in the corresponding quarter of the previous year.
- Operating EBITDA for existing centres was Rs417 mn excluding IND AS116 adjustment, reflecting an Operating EBITDA margin of 18 per cent.
- Loss from new centres was Rs92 mn excluding IND AS116 adjustment, as compared to loss of Rs73 mn in the corresponding quarter of the previous year.
- Consolidated Profit after Taxes and Minority Interest (PAT) was a loss of Rs223 mn (loss of Rs141 mn excluding IND AS116 adjustment), as compared to loss of Rs65 mn in the corresponding quarter of the previous year.
Commenting on the results, Dr BS Ajaikumar, Chairman and CEO, HealthCare Global said, “We are pleased to report Q2 and H1 FY20 results with positive performance and outlook. As covered in our Integrated Annual Report for FY2019, the economic and social impact created by HCG across the healthcare segment is being acknowledged in an upcoming study commissioned by International Finance Corporation (IFC), a testament to our commitment to cancer patients across India. HCG’s oncology network depth and presence, uniquely positions us to address the growing cancer burden in India holistically, while delivering quality cancer care and outcomes. We are nearing completion of our capex cycle, whlist driving profitability in our new centres. We are near the inflexion point where we expect to see robust growth in operating cash flows and consequent reduction in leverage. The company has been successful in creating scaled and specialised platforms across oncology, fertility and precision diagnostics, with Pan-India leadership, and we remain committed to driving long- term value creation for all our stakeholders.”