HCG Reports Impressive Results for Q2 & H1 FY25: Key Financial Highlights

Bengaluru, 12th November 2024 HealthCare Global Enterprises Limited (“HCG”), the leader in India in speciality healthcare services focused on oncology and fertility today announced its unaudited financial results for the quarter (“Q2”) and half year ended September 30th 2024.

Highlights for quarter ended September 30th, 2024

• Consolidated Income from Operations (“Revenue”) was INR 5,535 mn as compared to INR 4,870 mn in the corresponding quarter of the previous year, reflecting a year-on-year growth of 14%
• Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“Adjusted EBITDA”) was INR 1,042 mn, as compared to INR 864 mn in the corresponding quarter of the previous year, a growth of 21% year-on-year
• Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“Reported EBITDA”), was INR 1,023 mn, as compared to INR 846 mn in the corresponding quarter of the previous year, a growth of 21% year-on-year
• EBITDA for Established centers was INR 1,131 mn, a growth of 20% year-on-year
• EBITDA from Emerging centers was INR 30 mn, as compared to INR 6 mn in the corresponding quarter of the previous year
• Consolidated Profit after Taxes and Minority Interest (“PAT”) of INR 180 mn, as compared to INR 136 mn in the corresponding quarter of the previous year, growing by 33% year-on-year

• Overall ARPOB stood at Rs. 45,188 vs. Rs. 42,058 in Q2FY24, a growth of 7.4%
• Overall AOR stood at 65.6% vs. 65.8% in Q2FY24
• RoCE (Q2FY25 Annualized)
  • • RoCE for Established centers stood at 15.8% vs. 15.7% in Q2FY24. RoCE pre-corporate allocations stands at 19.6%
    • RoCE for Emerging centers stood at -10.7% vs. -13.2% in Q2FY24. RoCE pre-corporate allocations stands at -7.0%
• Several regions delivered high double-digit revenue growth on YoY basis
  • • • Markets like Kolkata and Ongole grew by 66% and 46% YoY respectively
      • Nagpur, Nashik & Jaipur grew by 32%, 32% and 28% YoY respectively
• HCC Hospital Ahmedabad, Phase III operationalized in Q2FY25
• 5 units of HCG have been Accredited by NABH for the Digital Health Accreditation Standards  namely KR, DR, Nashik, Borivali and Kolkata
• Aligning with asset light strategy, PET Machines on Pay-per-use across other 3 centers namely Vijayawada, Chennai and HCC operationalized in Q2FY25
• Advance replacement of Cyber-knife at KR completed and became operationalized in Q2FY25
• Replacement of LINAC at DR completed and new machine is operationalized

Commenting on the results, Dr. B.S. Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd.said, “I am proud to announce strong financial and operational performance for quarter ended September 2024, a true reflection of the dedication and expertise of our exceptional team, from doctors to support staff, who work tirelessly to provide high-quality care.

Having over decades of experience, we understand that cancer is a complex disease requiring a unique and focused approach to diagnosis and treatment. Our model centers on patient-centric, personalized care, ensuring that each patient receives treatment precisely tailored to their specific cancer type and stage of progression, and our outcomes are comparable to the best in the western world. With our network of hospitals spread across the country, we aim to provide this level of treatment to every patient battling cancer.

As we look to the future, HCG remains committed to pushing the boundaries of cancer treatment through the integration of advanced technologies and patient-centric innovations. With initiatives like Virtual OPD and centralized genomics, we aim to make high-quality cancer care more accessible and precise, empowering patients with cutting-edge diagnostics and treatment plans tailored to their unique needs.Our journey is made possible by the trust our stakeholders place in us, and we remain dedicated to advancing value-based cancer care across our growing network.”

Mr. Raj Gore, CEO HealthCare Global Enterprises Ltd., added, “HCG has reported its best ever quarterly revenues of Rs 554 crores with a robust growth of 14% and EBITDA margins standing strong at 18.8% compared to 17.8% in same period last year. Proforma revenue growth including Vizag acquisition stands at 20% with EBITDA margins of 19%. This growth is on the back of increased volumes across modalities leading to operational leverage playing out well. We are confident of continuing this upward trend with our emerging centers ramping up and contributing to the growth.

Emerging centers grew by 32% and with our Kolkata center being a major growth driver, growing by 66% on a year on year basis, turning profitable in the current year with 9.2% EBITDA % in Q2,and we expect the momentum to continue in coming quarters.

Our digital initiatives have significantly boosted our patient funnel, raising digital channel revenue to 14% of overall revenue in Q2, up from 4% last year. We aim to achieve 25% of revenue through digital platforms over the next 3-5 years. In addition, our strategic acquisition of MG Hospital in Vizag is progressing well and in line with our expectations. This acquisition has been instrumental in enhancing our footprint in the region, allowing us to further expand our services and strengthen our presence in one of the key markets for cancer care.

Going forward, we aim to increase our presence across the country while scaling operations at our existing centers with a view to provide best cancer care to the people of the country. Additionally, we plan to establish more Centers of Excellence in the coming years, modeled after our premier facilities in Bangalore and Ahmedabad, equipped with state-of-the-art medical infrastructure and top clinical talent. As we move forward, we remain focused on our mission to deliver exceptional care, drive innovation, and positively impact the lives of those we serve.”