Yatharth Hospitals' share price rises after releasing Q1 results

18 Aug 2023 , 02:23 AM

After the firm released its Q1 results for FY24 on Friday, Yatharth Hospital’s stock price increased by more than 10%. Shares of Yatharth Hospital increased by as high as 10.81% on the BSE to 345.40 per share.

Yatharth Hospitals recorded a net profit of Rs 19 crore, an increase of 73% year over year (YoY) for the quarter ending in June. 

The company’s operating revenue increased 39% in the first quarter of FY24, from Rs 111.1 crore to Rs 154.5 crore.

EBITDA margins grew by 368 basis points (bps) to 26.8% during the June quarter, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 61% to Rs 41.4 crore from Rs 25.7 crore.

‘Yatharth Hospitals recorded one of the strongest year-over-year growth rates in the hospital sector throughout the quarter. According to Yatharth Tyagi, Whole Time Director, Yatharth Hospital and Trauma Care Services Ltd., who talked to ET, ‘Our ongoing investments reflect a strategic approach to nurturing well-balanced future growth, exemplified by ongoing expansion initiatives, both organic and inorganic.’

In comparison to the same quarter last year, the company’s bed occupancy increased to 51% for the quarter that ended in June 2023 from 40%. The Average Revenue per Occupied Bed (ARPO), which was 26.457 in Q1FY23 and 27.706 in Q4FY23, increased to 28.140.

‘Across all of our hospitals, we are adding new specializations and diversifying our existing specialties. We successfully increased our organ transplant and oncology treatments during the last few quarters. We are extending our organ transplant operations, expanding our oncology treatment options, and further strengthening our specialties, all of which are anticipated to contribute to an increase in ARPOB in the ensuing quarters, according to Tyagi.

Three super-specialty hospitals are run by Yatharth Hospital & Trauma Care Services Ltd in Delhi’s National Capital Region.

With a 2% premium above the issue price, Yatharth Hospital shares had a lacklustre launch on Indian stock exchanges.

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