Narayana Health Plans Rs 1,600–1,700-Crore Capex In FY25 To Boost Growth: CFO
The focus for Narayana Health is on building a steady growth trajectory.
Narayana Hrudayalaya Ltd. is looking at heavy capital expenditure for the next few years for better growth, Group Chief Financial Officer Sandhya J said on Monday after the healthcare provider posted strong earnings in the first quarter of the current financial year.
The company, which operates as Narayana Heath, posted a 9.5% rise in consolidated net profit at Rs 201.5 crore, according to an exchange filing on Friday.
"We are looking at Rs 1,600–1,700 crore capex this year. We are expecting to keep this high-momentum capex for the next two to three years," Sandhya told NDTV Profit. "However, most of the capex investments we are making are greenfield in nature."
The company is currently working on new hospitals, which will add another 1,000 beds to its existing capacity.
Narayana Q1 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 8.7% to Rs 1,340.9 versus 1,233.4 crore.
Ebitda at Rs 303.8 crore versus Rs 270.6 crore.
Ebitda margin at 22.7% versus 21.9%.
Net profit up 9.5% to Rs 201.5 crore versus Rs 184 crore.
"From a performance point of view, I think our revenue performance has come in terms of steady-state performance. We are coming off the highs of Covid-19 because this is more like a good steady-state performance," Sandhya said.
What we have also done is cautiously take a balanced approach between a cash-flow profitability and growth.Sandhya J
The focus for Narayana is on building a steady growth trajectory. While the margin may look to be on the lower side, it is also due to the seasonality of the business, according to the CFO. "For us, Q1 and Q3 are typically lower quarters and Q2 and Q4 are higher-performance quarters because of the seasonality of the business and our efforts for the quality of revenue."
The average revenue per patient for Narayana Hrudayalaya Ltd. has grown by 6% YoY for the quarter that ended on June 30, 2024. In contrast, the growth in revenue per occupied patient stood at 10%.
With the new facilities, the CFO expects the next inflection of the company's revenue to come in the next three–four years. "Until then, we will try to grow through our existing facilities and therefore, we will continue to show organic, reasonable growth."
Shares of Narayana Hrudayalaya were trading 0.63% lower at Rs 1,223 per share on the NSE, compared to a 2.48% decline in the benchmark Nifty at 2:17 p.m.
