Narayana Hrudayalaya surges 13%, stock at new high on Q2 turnaround

The company said Indian operations staged a decent recovery in the quarter gone by, after the significant impact was observed in Q1FY22.

Shares of Narayana Hrudayalaya hit a new high of Rs 620, surging 13 per cent on the BSE in Thursday’s intra-day trade after the company reported consolidated net profit of Rs 99.4 crore in September quarter (Q2FY22), on the back of healthy operational performance. The company, a leading healthcare service provider in India, had posted a consolidated net loss of Rs 3.4 crore in Q2FY21.

Indian operations staged a decent recovery during the quarter gone by, after the significant impact was observed in Q1FY22, as the effects of the second wave of the pandemic subsiding.

In Q2FY22, the company’s consolidated total operating income grew 56.5 per cent year on year (YoY) to Rs 940 crore from Rs 601 crore in the corresponding quarter of previous fiscal. Consolidated earnings before interest, tax, depreciation and amortization (ebitda) stood at Rs 181 crore, as against Rs 37.2 crore in Q2FY21. Ebitda margins improved to 19.3 per cent from 6.19 per cent in a year ago quarter.

With new Covid-19 cases waning across the country, the management remains encouraged by the business momentum revival across the network. However, the profitability of flagship Health City, Bengaluru centres remain affected, as compared to the pre-Covid times, given the erosion in international patient mix as well as high-end cardiac sciences based elective work, the management said.

Narayana Hrudayalaya is one of the leading healthcare service providers in India, operating a chain of multispecialty, tertiary and primary healthcare facilities. The Company has a network of 21 hospitals and 4 heart centres across India along with overseas presence across a hospital at Cayman Islands, a heart centre at Chittagong, Bangladesh and a managed hospital at St. Lucia with over 6,100 operational beds across all its centres and potential to reach a capacity of over 6,800 beds.

At 09:48 am; the stock was trading 12 per cent higher at Rs 610.80 on the BSE, as compared to 0.40 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped multiple fold with a combined 1.7 million shares changing hands on the NSE and BSE.