Narayana Hrudayalaya in final stages to add 297 beds in its children’s hospital, Mumbai
Ashutosh Raghuvanshi, MD & CEO, Narayana Hrudayalaya discussed about the commissioning of new Mumbai Hospital that would make an extension of 297 beds in the current year. Along with 297 beds in children’s hospital another 35 beds would be contributed in total count of its existing hospital at its Health City Bangalore hospital.
Cyclical businesses are prone to ups and down during every financial year. Whilst the company recently posted in first quarter earnings, Raghuvanshi enunciated its third quarter to be muted yet the company strives to maintain the growth momentum. Considering 2017 fiscal has proved to be profitable for the company in terms of surging operating revenues, the honorable MD reviews it as a mix where hospital grows into their maturity profile. He insisted to look at results on annualized basis as slight suppression is unavoidable in any cyclical business.
Nevertheless, the effort of Narayana Hrudayalaya amounts to be a unique offering in Mumbai within next three to four months. The other projects in the state of Lucknow and Bhubneswar over the next 24 months are in pipeline of completion.
In regard of upward trajectory of the margins, Raghuvanshi confirmed,” If you look at the hospitals which are over five years we are currently running at an ARPOB of about 7.6 million with occupancy of about 60 percent and the earnings before interest, taxes, depreciation and amortisation (EBITDA) margins here are above 24.4 percent which is in line with the industry. So, we expect the other beds which are 3-5 years category also to go towards the same in the next two years. These hospitals currently are giving about 10 percent of EBITDA. So, we expect that at least two more hospital would show maturity within this fiscal.”