Healthcare Global Enterprises Limited (HCG), a cancer care provider in India announced its second quarter earnings for the financial year 2023-24 with profit at Rs 13.57 crore, up 78.3 per cent in comparison to Rs 7.61 crore during the same period last year. It posted revenue from operations at Rs 485.96 crore, up 15.9 per cent as against Rs 419.21 crore during the second quarter of FY23. The company EBITDA for existing centers was at Rs 83.20 crore, up 7 per cent on-year and EBITDA from new centers stood at Rs 12.20 crore as compared to Rs 9.90 crore in the corresponding quarter of the previous year, up 23 per cent.
HCG recorded overall ARPOB at Rs 42,054 versus Rs 36,914 in Q2FY23. Overall AOR stood at 63.6 per cent as against 66.4 per cent in Q2FY23. On an annualised basis, RoCE for Mature centers stood at 21.2 per cent vs. 21.8 per cent in Q2FY23. RoCE pre-corporate allocations stands at 25.5 per cent. RoCE for Emerging centers stood at -3.9 per cent vs. -4.3 per cent in Q2FY23. RoCE pre-corporate allocations stands at -0.8 per cent.
In terms of markets, Kolkata and Mumbai grew by 42 per cent and 41 per cent YoY respectively. Nagpur, Ranchi and Rajkot grew by 60 per cent, 48 per cent and 38 per cent YoY respectively and the company’s international operations grew at a robust growth rate of 175 per cent YoY.
Dr BS Ajaikumar, Executive Chairman, HealthCare Global Enterprises Ltd, said, “Our performance for the quarter is yet another testimony of our consistent strides in moving up the value chain of outcome-driven cancer care. Led by our unique approach to treatment, path breaking clinical excellence, and intelligent technology adoption, we have deepened our understanding of the essence and progression of cancer and how it affects every patient differently.”
“During the year, HCG Cancer Hospital Bengaluru initiated a ground-breaking pilot study for head and neck cancer patients with Low Dose Immunotherapy towards providing a cost-effective and safer therapy option. This study has the potential to be a game-changer in the sphere of head and neck cancer treatment and reflects HCG’s commitment to advancing research and academia in India. On the corporate front, our acquisition of SRJ CBCC Cancer Hospital in Indore is another cherished milestone in our expanding cancer care footprint across India,” he added.
Raj Gore, CEO, HealthCare Global Enterprises Ltd, said, “HCG’s unwavering commitment to expand patient outreach, bolstering capacity, and maximizing utilization, has resulted in remarkable performance for the secondquarter of fiscal year 2024. Our revenues witnessed a 16 per cent growth on a year-on-year and stood at Rs 486 crore. Additionally, our EBITDA (excluding ESOP cost) amounted to Rs 86 crores an increase of 14 per cent YoY with margins standing at 17.8 per cent. We have embarked on our inorganic journey in the quarter gone by. After successful consummation of Nagpur and Indore hospital acquisition, we have initiated the process of integrating systems, processes and operations to be carried out the HCG way in these hospitals with an objective to enhance and extend our cancer care services throughout the state of Madhya Pradesh. We are optimistic of revenue uptick and margin expansion on the back of operational efficiencies, synergies and patient volume uptick on account of the promise brand HCG carries for cancer care across the country.”