KIMS Hospitals Expands Oncology Services, Sets ₹40K ARPOB Goal

27 Nov 2024 , 11:02 PM

KIMS Hospitals’ Chairman and MD, B Bhaskar Rao, expects the average revenue per occupied bed to go up to ₹40,000 in the next few quarters.

It will be driven by segments such as oncology and women & child care services, which are its key service lines. The hospital chain presently reports an ARPOB of around ₹38,250.

The oncology segment, operational in two facilities, will expand into 14 more locations in 2-3 quarters. Women and child care services will be the fastest-growing specialties in the near future.

The six core specialties KIMS focused on initially were cardiac sciences, renal sciences, gastro sciences, orthopedics, neurosciences, and later on added oncology to address the changing health needs.

• 80% of the revenue of the initial specialties came from renal sciences.
• Cardiac sciences, neurosciences, and gastro sciences generated 20%, 10%, and 5-6%, respectively.

Hospital would add 1,800 beds over the next two years through greenfield and brownfield expansions.

• Kondapur facility-500 beds to be added by Q1FY27
• Anantapur-250 beds would be added by Q4FY26.
• Srikakulam and Ongole will add 120 and 50 beds, respectively by Q4FY25

Greenfield projects include adding 415 and 250 beds across two facilities to be set up in Bengaluru which are expected to be completed by Q4FY24.

A 300-bed hospital in Thane is expected to come into operation by the end of this financial year. Operational and management agreements are in place for two 200-bed hospitals in Kannur and Guntur, to start this quarter.

In Q2FY24, KIMS reported:

• Consolidated revenue increased to ₹773 crore from ₹653 crore in Q2FY23.
• EBITDA increased to ₹214 crore from ₹178 crore, with a margin of 27.67%.
• Profit after tax increased to ₹121 crore from ₹101 crore last year.