Global Health Limited — Credit Ratings, 18-03-2025: Credit Rating- Revision

Global Health Limited (GHL) has reported consolidated revenue of ₹3,278 crore for fiscal 2024, marking a 21% year-on-year growth. This increase is attributed to a rise in inpatient volumes prompted by bed expansions and improvements in average revenue per occupied bed (ARPOB), which stood at ₹61,890. The occupancy rate improved to 61.6%. Net profit after tax (PAT) rose to ₹478 crore, representing a PAT margin of 14.6%. Operating profitability remained healthy at 24.9%, supported by strong performance from the flagship Gurugram hospital and improving operations in Lucknow and Patna, despite challenges from competition.

Operational costs saw a slight increase, largely due to ongoing bed expansions and initial expenses for opening new facilities, but overall cost management remained robust. The consolidated balance sheet reflects a healthy financial risk profile with an adjusted net worth of ₹2,900 crore, and gearing is comfortably low at 0.28 times. GHL's liquidity position is strong, with cash accrual expected to range between ₹600-700 crore annually, which will comfortably cover yearly debt obligations.

Looking ahead, GHL is focused on further expanding its bed capacity and enhancing service offerings, with plans for significant capital expenditure over the next 3-5 years. Market sentiment appears positive, driven by stable occupancy rates and strategic expansions. Given the strong financial performance and expansion plans, GHL presents a compelling opportunity, suggesting a buy perspective for investors.