HealthCare Global Enterprises Ltd. reports Q2 FY22 results

Bengaluru, November 15,2021: 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 (“Q2”) and six months ended September 30, 2021.
Highlights for quarter ended September 30th, 2021
   Consolidated Income from Operations (“Revenue”) was INR 3,520 mn as compared to INR 2,479 mn in the corresponding quarter of the previous year, reflecting a year-on-year growth of 42.0%
   Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“EBITDA”) was INR 650 mn, as compared to INR 340 mn in the corresponding quarter of the previous year, a growth of 91.1% year-on-year and 19.0% quarter-on-quarter
   Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“Operating EBITDA”), was INR 617 mn, as compared to INR 300 mn in the corresponding quarter of the previous year, a growth of 105.7% year-on-year and 20.5% quarter-on-quarter
   Operating EBITDA for Existing centers was INR 598 mn, a growth of 81.7% year-on-year and 12.4% quarter- on-quarter, reflecting an Operating EBITDA margin of 21.9%
   Operating EBITDA from New centers was INR 19 mn, as compared to loss of INR 29 mn in the corresponding quarter of the previous year and loss of INR 19 mn in the previous quarter
   Consolidated Profit after Taxes and Minority Interest (“PAT”) was a profit of INR 1,031 mn, as compared to loss of INR 223 mn in the corresponding quarter of the previous year 
Business Updates for Q2 FY22
•         Record performance with ‘all-time high’ operating financials delivered across the business:
o    Highest ever monthly and quarterly Revenue and EBITDA delivered during the quarter
o    Strong sequential & yearly revenue growth on the back of higher footfalls
•         HCG New centers continued their scale-up trajectory:
o    Strong revenue growth of 57.9% y-o-y and 10.1%q-o-q
o    Recorded positive EBITDA with several centers witnessing turnaround in EBITDA (unit level)
•         Several regions delivered double-digit revenue growth on sequential basis on the back of gradual unlocking of the economy
o    Maharashtra upsurge continued across all centers and delivered 17.5% revenue growth q-o-q
o    East India witnessed a continuance in its growth path with 20.1% revenue growth q-o-q
o    North India recorded a high growth of 42.1% q-o-q
•         Other highlights
o    Milann revenues grew by 56.9% y-o-y and our digital campaigns contributed to this
o    ICRA has upgraded the credit rating of our Company to A plus (stable) from A negative (stable)
Commenting on the results, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd. said, “At HCG, we believe in patient centric care and focus on accessible oncological services, advanced treatments and high-quality care and outcomes. Over the years, we have emerged as a responsible brand, earning the trust of thousands of patients and admiration of the community. Our focus on advanced technology, our ability to deliver exceptional clinical outcomes and a team of dedicated specialists equip us with capabilities to further the oncology care continuum while emerging as a pioneer and leader in oncology. The Company has turned in industry-leading revenue growth this quarter, which is also backed by improving profitability, especially among the new centres that have not yet reached the mature stage of operations. The growth opportunities ahead of us in the domestic business is quite strong and we are also seeing a turnaround in the number of international patients visiting our centres with the easing of travel restrictions. Milaan, our fertility center has also performed very well with a growth of 57% on the back of a new leadership team under Shailesh Guntu aided by our focus on digital outreach which is delivering us the desired results. Overall, HCG under the dynamic leadership of Raj Gore, our CEO, is positioned very uniquely with a strong pipeline as well as a de-levered balance sheet to deliver superior growth and profitability but with a clear focus on tangible outcomes for all our stakeholders, most important of which are our patients for whom positive outcomes from the disease is the best return.”
Mr. Raj Gore, CEO HealthCare Global Enterprises Ltd., added, “We continued with the momentum that we had built up in the first quarter of this fiscal with a strong performance across all operating metrices in the current quarter. We delivered our highest revenue and EBITDA for any quarter ever in our history. I would like to highlight that over the last 3 quarters, we have consistently reported our highest revenue. What is heartening is that the Q2 core revenues, excluding COVID and vaccination business, is also the highest ever recorded in our history.
The growth in revenue has also been matched by corresponding growth in profitability margins. We closed the second quarter with our highest ever EBITDA at Rs. 65 cr. with 1.6% margin expansion over the previous quarter. This is also the first quarter after 13 quarters where our PAT is back in the positive territory. A direct impact of the improving financials has been the generation of free cash flow over the last two quarters.
The result showcases our entire team’s focus on driving growth and operational efficiencies which we are confident of continuing in the quarters to come.