Narayana Hrudayalaya Q2 sees highest quarterly revenue but net profit dips 12%

Healthcare provider Narayana Hrudayalaya Ltd on Thursday (October 31) reported a 12.3% year-on-year (YoY) decline in consolidated net profit at ₹198.8 crore for the second quarter that ended on September 30, 2024. In the corresponding quarter of the previous fiscal, Narayana Hrudayalaya posted a consolidated net profit of ₹226.7 crore, the company said in a regulatory filing.

Narayana Hrudayalaya reported a consolidated total operating revenue of ₹1,400 crore for Q2 FY25, marking a 7.3% YoY increase from ₹1,305.2 crore in the same period last year and a sequential growth of 4.4%.

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The company’s EBITDA stood at ₹332 crore, representing a margin of 23.7%. This was a 1.7% YoY rise from ₹326.5 crore in Q2 FY24, along with a 1.4% QoQ growth.

In terms of segment performance, the India operations saw operating revenue of ₹1,168.4 crore for Q2 FY25, achieving an 11% YoY increase from ₹1,052.7 crore in Q2 FY24 and a 7.6% sequential rise.

The Cayman Islands segment, however, reported a decline, with operating revenue of ₹242.3 crore down 7% YoY from ₹260.7 crore, and 9.4% lower QoQ.

As of September 30, 2024, Narayana Hrudayalaya’s total borrowings, after adjusting for cash, bank balances, and current investments, amounted to ₹268.4 crore, resulting in a net debt-to-equity ratio of 0.08. This includes foreign currency-denominated debt of $81.5 million.

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Dr Emmanuel Rupert, Managing Director and Group CEO of Narayana Hrudayalaya, said, “We are pleased to report the highest-ever revenue on a quarterly basis with sustainable profitability margins, which is on account of improvement in realizations and increased domestic patient footfalls.”

“Despite the slowdown in international patient inflows due to geopolitical tensions in the neighbourhood, we have been able to show overall growth in revenues during the quarter through our enhanced focus on domestic business. The performance improvement is seen across our flagship units, other hospitals, and steady improvements in the performance of our newer hospitals,” he added.

The results came after the close of the market hours. Shares of Narayana Hrudayalaya Ltd ended at ₹1,265.30, up by ₹41.95, or 3.43%, on the BSE.