Global Health Limited — Investor Meet, 21-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Global Health Limited reported robust financial results for Q2 FY25, achieving its highest-ever quarterly revenue. Consolidated total income reached INR 9,748 million, up 12.7% year-on-year and 10.4% sequentially. EBITDA increased by 5.5% YoY to INR 2,465 million, with EBITDA margins improving to 25.3%, a sequential rise of 170 basis points. Profit after tax was INR 1,308 million, reflecting a 4.5% YoY increase. Despite these gains, PAT margins compressed slightly from 14.5% in Q2 FY24 to 13.4% in the current quarter, demonstrating strong revenue growth offset by operational costs.

**Future Outlook and Growth Drivers:** Management expressed optimism around expansion, particularly with a new 750-bed super specialty hospital in Pitampura. The company aims to enhance service offerings through advanced technologies and medical innovations. Upcoming capacity increases and strategic hiring are anticipated to drive future growth.

**Order Book and Operational Updates:** The company's operational capacity expanded by 118 beds across its network. In Q2, inpatient volumes rose by 8.8% YoY, while outpatient numbers grew by 6.6%. New specialties, like plastic surgery, were introduced, further aligning services with community needs.

**Analyst Q&A Insights (Detailed):** Analysts sought clarity on Q2 performance drivers including revenue growth and profitability challenges. Management attributed improved EBITDA and margins to higher patient volumes and changes in case mix. In discussions on market competition, it was noted that although new hospitals are opening in Delhi NCR, Medanta's established patient base is likely to mitigate risks. Questions on capital expenditure highlighted ongoing projects in Mumbai and Pitampura, with plans for substantial advancements despite delays in other locations due to regulatory issues.

**Strategic Focus Areas:** The call underscored strategic themes of community engagement, service expansion, and continuous investment in technology and talent. Management reiterated its long-term vision for sustainable growth within the healthcare sector, adapting to evolving market demands.

**Investor Insight:** Given the solid financial performance and proactive growth initiatives, combined with operational expansion, the outlook appears favorable for investors. The health of the balance sheet, characterized by a net cash surplus of INR 7,186 million, further supports a constructive investment view, suggesting a favorable position for continued growth and value delivery.