iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Q4FY23 Review: KIMS: Robust quarter; expansion plans on track

22 May 2023 , 01:02 PM

KIMS’ Q4 Ebitda was ~4% ahead of analysts of IIFL Securities estimates as overall operating Ebitda margins expanded ~100bps QoQ to ~27%, on the back of margin improvement in mature hospitals. While KIMS’ existing hospitals are expected to grow at 10-11% Cagr, FY24 growth will also be aided by revenue and profitability ramp-up in acquired hospitals of Sunshine and Nagpur, as KIMS expands the doctor team and the specialties offered at these acquired hospitals over next 2-3 quarters. Thereafter, growth momentum will be supported by significant capacity additions in FY25/26, with 800 beds are expected to be added through brownfield expansions in existing markets (Vizag, Kondapur, Anantapur) and another 1,000 beds to be added in greenfield markets (Nashik, Bangalore, Thane). Given robust Ebitda-to-OCF generation of 80%, the expansion will be largely funded through internal accruals.

Improving occupancies and capacity expansions to support growth in existing markets: 

KIMS’ IP volumes in existing hospitals (exSunshine/Nagpur) grew 8% YoY in FY23 and we see scope for consistent volume growth, given that overall occupancies in its base hospitals stands at 64%. Also, tripling of bed capacity in Kondapur by FY25 and addition of new specialities like Oncology, M&C care & Gastro should enable KIMS to deliver ~11% revenue Cagr in its existing hospitals over FY23-26.

Strengthening of clinical team at Sunshine/Nagpur should drive revenue & Ebitda margin ramp-up over the next 2 years. Nagpur’s margins are expected to improve from 5% currently to 10-11% over the next 6-8 months on existing revenue base. While planned hiring of 12-15 new doctors and revenue scale-up will expand margins to 18-20% by FY25. Relocation of Sunshine’s Secunderabad hospital to new campus by Q2FY24 will also enable KIMS to recruit doctor talent and improve Sunshine’s margins from 19% to 24-25% over next 2 years.

Greenfield hospitals at Nashik, Bangalore & Thane to be commissioned in H1FY25, thereby strengthening KIMS’ presence in new markets. KIMS will operationalise 150 beds each (out of 350 capacity beds) during P-1 at Nashik & Bangalore. Thane will add capacity of 300 beds at a capex cost of either Rs2.5bn (asset-light) or Rs4.5bn (asset-heavy model).

Related Tags

  • KIMS
  • KIMS Q4
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.