Aster DM Healthcare rally as PAT jumps 57% Y-o-Y

Aster DM Healthcare jumped 5.86% to Rs 177 after consolidated net profit surged 57% to Rs 157.49 crore in Q3 December 2019 (Q3 FY20) as against Rs 100.34 crore reported in Q3 December 2018 (Q3 FY19).

Net sales rose 8% year-on-year (Y-o-Y) to Rs 2,321.66 crore in Q3 FY20. The Q3 numbers were disclosed after market hours yesterday, 11 February 2020.

Profit before tax jumped 22.9% to Rs 159.67 crore Y-o-Y. Current tax expenses dropped 74.2% to Rs 4.65 crore during the period under review.

Earnings before interest, tax, depreciation and amortization (EBITDA) (excluding other income and before Ind AS 116) grew 19% to Rs 314 crore in Q3 FY20 from Rs 263 crore in Q3 FY19. EBITDA margin stood at 13.5% in Q3 FY20 as against 12.2% in Q3 FY19.

A strong focus on delivering quality healthcare through diversified healthcare offerings and enhanced efficiencies saw Aster DM Healthcare continue to grow.

Effective 1 April 2019, the group adopted Ind AS 116 'Leases', applied to lease contracts existing on 1 April 2019. The effect of this adoption has resulted in decrease in other expenses, increase in interest expenses (included under finance cost) and an increase in depreciation and amortisation expenses for continuing operations. Performance of the Company is without the impact of Ind AS 116.

Hospitals revenues increased by 16% to Rs 1,218 crore in Q3 FY20 from Rs 1,053 crore in Q3 FY19. Clinics revenues for GCC clinics in Q3 FY20 remained steady at Rs 543 crore as compared to Rs 538 crore in Q3 FY19. Pharmacies revenues increased by 10% to Rs 623 crore in Q3 FY20 from Rs 602 crore in Q3FY19.

Commenting on the Q3 outcome, Dr. Azad Moopen, the founder chairman and managing director of Aster DM Healthcare, has said that, "The third quarter of this financial year has been good for Aster DM Healthcare. The performance was primarily supported by growth in hospital segment. Another key development was the approval by the Board of Directors of the Company of the proposal to buyback 57.42 lakh shares at a price of Rs 210 per share. This buyback program is part of our endeavor to maintain a balance between our growth aspirations and ensuring regular returns and value for our continuing shareholder. We continue to maintain high standards of clinical excellence and with a great team under our umbrella will continue to drive growth and enhance value for all our stakeholders."

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.

The stock hit its 52-week high at Rs 180.50 during today's intraday trade.

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