Earnings Call Transcript Analysis Report #
Financial Performance #
Key Financial Metrics #
- Total Revenue (Q4 FY25): INR 585 crores, an 18% year-on-year (YoY) growth.
- Excluding Milann, company revenue grew 20% YoY to INR 571.1 crores.
- Total Revenue (FY25): INR 2,223 crores, a 16% YoY growth.
- Excluding Milann, company revenue grew 17% YoY to INR 2,165.1 crores.
- Adjusted EBITDA (Q4 FY25): INR 106.9 crores, up 14% YoY, with a margin of 18.3%.
- Adjusted EBITDA (FY25): INR 396.3 crores, up 17% YoY, with a margin of 17.8%.
- Core HCG Centers (Excluding Milann) FY25: Revenue grew 17%, EBITDA grew 17%, resulting in an EBITDA margin of 17.8%.
- PAT (Q4 FY25): INR 7 crores.
- PAT (FY25): INR 44 crores.
- ARPOB (Network, Q4 FY25): INR 44,236 (up 4% YoY).
- Established Centers ARPOB: INR 42,591 (up 2.5% YoY).
- Emerging Centers ARPOB: INR 66,755 (up 12.4% YoY).
- Effective Tax Rate (Q4 FY25): 50.3%.
- Effective Tax Rate (FY25): 14.3%.
Comparison with Previous Periods #
- The company reported strong YoY growth in both revenue and EBITDA for Q4 and the full year FY25.
- A slight decrease of 40-50 basis points in EBITDA margin for Q4 FY25 compared to Q4 FY24 was attributed to a higher contribution from the medical oncology business.
Revised Guidance or Forecasts #
- The company is optimistic about “delivering even stronger growth in FY ‘26, both in terms of revenue and profitability.”
- Expected ARPOB growth for FY26: “7% to 8% increase in ARPOB.”
- Expected effective tax rate for FY26: “about 30-odd percent.”
Areas of Growth or Decline #
- Growth:
- Strong revenue and EBITDA growth across the board.
- Emerging centers showed significant outperformance: Q4 revenue up 32%, EBITDA up 44%.
- South Mumbai center: 37% YoY growth (Q4).
- Kolkata center: 22% growth (Q4).
- Chemotherapy sessions: 24% growth, indicating higher patient demand in medical oncology.
- Digital revenue: Doubled in FY25.
- Decline/Pressure:
- PAT was impacted by increased depreciation and interest costs (approx. INR 25 crores) due to expansions (new HCC facility, MG Center Vizag acquisition), ROU creation (INR 275 crores), fixed asset additions (INR 400 crores), and increased net debt (INR 250 crores).
- Receivables were higher YoY, though expected to normalize.
Strategic Initiatives & Business Updates #
Major Strategic Announcements #
- New Investor: KKR is set to replace CVC as a key investor.
- Milann Divestment: Plans to divest the Milann fertility business.
- Primary Equity Infusion: Considering primary equity.