Yatharth Hospital & Trauma Care Services Limited — Investor Meet, 03-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. Financial Performance: Yatharth Hospitals posted Q3 revenue of Rs. 2,192 million, reflecting a robust 31% year-over-year growth and a slight 1% increase quarter-over-quarter. Notably, the Noida Extension Hospital led with a remarkable 43% revenue growth YoY. EBITDA improved by 18% YoY to Rs. 549 million, but the EBITDA margin decreased to 25.1% from 27.8% YoY due to operational losses at the recently opened Greater Faridabad unit. Net profit grew modestly by 3% YoY to Rs. 305 million, affected by increased depreciation linked to capacity expansion plans.

2. Future Outlook and Growth Drivers: Management remains optimistic about sustaining 30% YoY growth, citing internal expansions and strategic acquisitions. The integration of the Greater Faridabad and upcoming Delhi hospitals, projected to operationalize by April, is central to this growth strategy.

3. Order Book and Operational Updates: Yatharth has acquired two hospitals in Delhi and Faridabad, enhancing its bed capacity by approximately 700 beds. Management aims to operationalize these facilities in the next quarter while focusing on procuring advanced medical technologies.

4. Analyst Q&A Insights:

- **Revenue and Profitability:** Analysts sought clarity on sustainable ARPOB growth, which management projected at around 10% YoY.

- **Market Position:** Management emphasized reducing government reliance, targeting 25% of revenue from government payers in 2.5 years.

- **Operational Challenges:** While some operational losses persist in Greater Faridabad, management expresses confidence in its turnaround within the next fiscal year.

- **Capex:** Significant planned CAPEX includes medical equipment purchases and operational improvements at newly acquired facilities.

- **Strategic Priorities:** Management highlighted the importance of enhancing super specialty services to drive ARPOB and profits.

5. Market or Regulatory Updates: Management confirmed an ongoing resolution regarding a provisional attachment of assets with the Income Tax department, reporting Rs. 60 crore currently blocked, down from Rs. 250 crore a year prior.

6. Strategic Focus Areas: Yatharth’s strategy centers on super specialty care, reducing government business, and integrating advanced technologies, all of which aim to bolster its market positioning in North India.

7. Investor Insight: With strong fundamentals, strategic expansions, and solid near-term growth, the outlook warrants a ‘buy’ position given the promising financial metrics and management's proactive approach to risks and operational challenges.