Tuesday, April 5, 2022

HCG Q2 FY21 revenue dips 11%, EBITDA down 28% y-o-y – Express Healthcare

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With substantial deleveraging of balance sheet, reduction in losses across new centers, and focus on free cash flow generation, company moving closer to profitability: Dr Ajaikumar

Announcing the Q2FY21 results, HealthCare Global Enterprises (HCG), a speciality healthcare services chain focused on oncology, fertility and precision diagnostics, reported revenue of INR  e (INRne of 11% y-o-y in ines a 2,479 million, a decline of 11 per cent (y-o-y) and for H1 FY21 of INR 4,414 Million, a decline of 19 per cent (y-o-y). EBITDA for Q2 FY21 was INR 340 Million, a decline of 28 per cent (y-o-y) and EBITDA for H1 FY21 of INR 561 Million, a decline of 40 per cent (y-o-y)

Effective 1 April 2019, the Company has adopted IND AS 116 ‘Leases’ standards, applied to lease contracts existing on April 1, 2019 and all financials are as per IND AS 116.

Analysing how the company weathered the COVID-19 pandemic, Dr BS Ajaikumar, Chairman and CEO, HCG said, “Strong performance of oncology centers in Tier 2/3 towns, improvements across the board at our new centers across Mumbai, with Borivali almost at the verge of operational break-even at unit level, and bounce back of Kolkata center, demonstrates that we have not only adapted well to the challenges but also emerged stronger, particularly in our domain.”

Loss from new centers was INR 29 million, down from INR 48 million in the corresponding quarter of the previous year, a reduction of 40 per cent year-on-year and 52 per cent quarter-on-quarter

HCG’s operating systems and internal efficiencies allowed them to maintain continuity and quality of care for oncology patients across the country, while minimising revenue and cost disruptions to the extent possible.

Dr Ajaikumar believes that with substantial deleveraging of the balance sheet, reduction in losses across new centers, on y-o-y and q-o-q basis, and focus on free cash flow generation, the company is moving closer to profitability and a return to the accretive phase for the company.

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