Aster DM Healthcare declines after Q4 PAT falls 33%

Aster DM Healthcare fell 2.43% to Rs 122.30 after consolidated net profit tanked 33.4% to Rs 146.31 crore on 4.6% rise in net sales to Rs 2,301.37 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) dropped 34.8% to Rs 146.26 crore in Q4 March 2020 as against Rs 224.27 crore in Q4 March 2019. Current tax expense surged 541.8% to Rs 14.44 crore in Q4 March 2020 as against Rs 2.25 crore in Q4 March 2019. The Q4 result was announced after trading hours yesterday, 22 June 2020.

EBITDA slipped 10% to Rs 316 crore in Q4 FY20 as against Rs 350 crore in Q4 FY19. EBITDA margin decreased to 13.7% in Q4 FY20 from 15.9% in Q4 FY19.

The company believes that the COVID-19 pandemic will only have a short-term impact on its operations and after easing of the lockdown restrictions, the business is expected to return to normal. The company has taken various measures to reduce its fixed cost like salary reductions, optimization of administrative, sales and marketing costs, deferment of capex along with judicious resource allocation and requesting for the waiver of minimum guarantee fee and revenue share for hospital premises taken on lease. Accordingly, the management believes that the company will not have any challenge in meeting its financial obligations for the next 12 months based on the financial position and liquidity as on the date of the balance sheet and as on date of signing of these financial results.

Aster DM Healthcare operates in various segments of the healthcare industry, which include hospitals, clinics and retail pharmacies, and provides healthcare services to patients across economic segments in various gulf corporation council (GCC) states through its various brands, such as Aster, Medcare and Access.

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