Healthcare Global Enterprises Limited (HCG), cancer care hospital chain in India, posted its fiscal first quarter profit at Rs 3.65 crore, up 47.2 per cent in comparison to Rs 2.48 crore during the first quarter of FY23. It posted revenue from operations at Rs 459.71 crore, up 12.9 per cent as against Rs 407.31 crore during the corresponding quarter of FY23. While the total income during the quarter ended June 2023 was at Rs 463.10 crore, total expenses during Q1FY24 stood at Rs 452.93 crore. Overall AOR stood at 66.9 per cent vs. 61.0 per cent in Q1FY23, a rise of 590 bps.
“HCG’s oncology network, through its presence and depth, uniquely positions the company to address the growing cancer burden in India holistically, while delivering quality cancer care and outcomes. HCG’s role today goes beyond mere service provision, extending into pioneering research and academia,” said Dr BS Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd.
“We are currently working on the low dose immunotherapy and also collaborating with various MNC’s for developing technologies and AI based framework for treatments,” he added.
While the RoCE for mature centers stood at 0.2 per cent vs 19.0 per cent in Q1FY23, registering an improvement of 120 bps, RoCE for emerging centers stood at -5.0 per cent vs -4.6 per cent in Q1FY23. Several regions, HCG said, delivered high double-digit revenue growth on an annual basis. Markets like Kolkata and Rajkot grew by 54 per cent and 51 per cent YoY respectively; Ranchi, Jaipur and Nagpur grew by 27 per cent, 22 per cent and 18 per cent YoY respectively; and the international operations grew at 108 per cent YoY.
In terms of acquisitions, HCG entered into a share purchase agreement with shareholders of NCHRI. The company also entered into partnership transfer agreement with Dr Ajay Mehta in HCG NCHRI Oncology LLP to acquire his partnership interest. HCG NCHRI, Nagpur operates and manages 115 bedded hospital in the city, providing comprehensive cancer care services under medical services agreement. Revenue from operations of HCG NCHRI LLP for the financial year ended March 31, 2023, was Rs 51.4 crore.
HCG is also acquiring an oncology hospital from SRJ Health Care Pvt Ltd at Indore which has a 50 beds facility offering medical, surgical and radiation oncology. The company is aiming at targeting the oncology market estimated to grow at 15-20 per cent CAGR. It said that the company is looking at capacity expansion by 100 beds at a nearby location, which is estimated to be operational in 2 years.
“We are delighted to share that we have initiated our journey of expansion through inorganic means, successfully completing the acquisition of two centers situated in Indore and Nagpur. These strategically significant locations and assets are poised to serve as a strong foundation for our oncology practice, positioning us to emerge as prominent players in these markets in the forthcoming years. Our strategic approach involves a gradual and meticulous augmentation of both capacity and capabilities, thoughtfully timed to facilitate scalability and bolstered profitability through the harmonization of synergies and operational efficiencies,” said Raj Gore, CEO HealthCare Global Enterprises Ltd.