Krishna Institute of Medical Sciences Limited — Investor Meet, 13-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. Financial Performance: KIMS Hospitals recorded a gross revenue of INR 790 Cr, reflecting a year-on-year growth of 29.7% and a quarter-on-quarter increase of 1%. The EBITDA was INR 205 Cr, showing a year-on-year rise of 36.4% but a decline of 8.1% sequentially, with an EBITDA margin adjusting to 25.9%, up from 24.7% in Q3 FY '24 but down from 28.5% in Q2 FY '25. Profit After Tax (PAT) was INR 93 Cr, compared to INR 77 Cr in the previous year and INR 121 Cr in Q2 FY '25. The consolidated EPS for the nine months stood at INR 7.1, a 15.6% increase year-on-year after adjustments.

2. Future Outlook and Growth Drivers: Management highlighted continued growth prospects driven by aggressive expansion plans, including a new 200-bedded hospital in Guntur and positive performance in existing facilities, notably in Kerala. Key strategies focus on enhancing specialty care, including neuro care and advancements such as MRI-guided focused ultrasound.

3. Order Book and Operational Updates: The firm remains committed to increasing bed capacity, with significant openings planned in Maharashtra and Karnataka. They reported milestones such as breakeven for the Kannur facility within three months of operation and collaborations expanding their footprint in Kerala.

4. Analyst Q&A Insights (Detailed):

- Revenue and Profitability: Analysts sought clarity on the decline in EBITDA margins within the Maharashtra cluster, attributed to seasonal impacts and one-off write-offs, with management projecting a return to breakeven in Nashik by next year.

- Market Position and Competitive Landscape: Questions on the competitive nature of the Thane market revealed management's confidence that demand would sustain multiple players.

- Operational Challenges or Risks: Delays in new projects and anticipated operational costs were discussed, with management stating that losses from the Nashik home remain manageable.

- Capex and Capital Allocation: Planned capital expenditures remain on track at approximately INR 500-600 Cr, with expectations of continued debt levels remaining conservative.

- Strategic Priorities and Long-Term Vision: The discussion underscored a strong commitment to diversify services while enhancing profitability through operational efficiency.

5. Market or Regulatory Updates: No major regulatory updates influenced growth in the current earnings call.

6. Strategic Focus Areas: The company continues to emphasize quality patient care, innovation in treatment methodologies, and streamlining operations through technology.

7. Investor Insight: Given the positive operational metrics, strong growth trajectory, and strategic expansion plans, KIMS appears well-positioned for growth. The consistent revenue increase juxtaposed with short-term challenges suggests a hold position, with potential for upward adjustments as new facilities mature into profitability.