Rainbow Children's Medicare - Expansion Plans On Track, Volume-Revenue Growth; Retaining A Buy: Anand Rathi

Anand Rathi Report

In line with consensus and ahead of our estimate, Rainbow Childrens Medicare Ltd. had a decent start to FY25. Revenue/Ebitda was up 15%/7% YoY; profit after tax, though, fell 4% YoY on higher interest cost and depreciation (the start of the new unit).

Key highlights:

1. Rs 56,212 average revenue per occupied bed, down 6% YoY but QoQ up 4%.

2. Overall occupancy 42% (versus 41%/48% in Q1/Q4 FY24).

3. Mature hospitals’ occupancy 50% (versus 46%/57%).

4. New hospital occupancy 28% (versus 25%/30%).

5. Capacity expansions are on track (60/100 beds; Q4 FY25) in Bengaluru and Rajahmundry, and Coimbatore (a 130-bedded hub hospital; FY26).

6. Net cash at end-Q1 was Rs 5.1 billion.

7. Rs 567 million capex in Q1.

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