Healthcare Global tumbles after Q4 net loss widens to Rs 114 cr

Healthcare Global Enterprises skid 4.07% to Rs 193.40 after the company's consolidated net loss widened to Rs 113.76 crore in Q4 FY21 compared with net loss of Rs 50.44 crore in Q4 FY20.

Net sales rose 10.2% to Rs 297.04 crore in Q4 FY21 from Rs 269.50 crore in Q4 FY20. Pre-tax loss was at Rs 104.35 crore in Q4 FY21 as against a pre-tax loss of Rs 41.68 crore in Q4 FY20.

EBITDA grew 16% to Rs 43.80 crore in Q4 FY21 as against Rs 37.70 crore in Q4 FY20. EBITDA margin improved to 14.5% during the quarter compared with 13.9% during the corresponding quarter, last year.

Milann, a fertility centre and a subsidiary of Healthcare Global Enterprises, delivered positive growth on quarter-on-quarter (Q-o-Q) basis across new registrations, revenues and IVF cycles of 20.1%, 8.1% and 2.8% respectively and achieved operational break-even for the quarter.

Strand Lifesciences, a pioneer in bioinformatics and precision diagnostics in India, where HCG owns 38.2% stake, turned profitable at EBITDA and PAT level for the quarter, and on full year basis.

On account of COVID-19 and related considerations, the board decided to take conservative approach towards investments / projects including Gurgaon, Milann, Africa etc. through partial impairment of book value.

During the financial year, Healthcare Global Enterprises' consolidated net loss stood at Rs 221.10 crore in FY21 compared with net loss of Rs 125.45 crore in FY20. Revenue from operations skid 7.61% to Rs 1,009.19 crore in FY21 from Rs 1,092.34 crore in FY20.

Commenting on the Q4 results, Dr B.S. Ajaikumar, the executive chairman of HealthCare Global Enterprises, said: "Amidst the challenging environment, our Q4 and FY21 performance gives us lot of confidence as we enter the new financial year on positive note. This has been a remarkable year for all of us, including HCG, which has not only weathered multiple storms, internal debt issues and macro-environmental challenges, but also emerged as a stronger, focused and sustainable leader in the oncology domain."

"We are actively contributing to India's fight against COVID-19 with several initiatives and also conducting vaccination drives across our hospitals as well as 3rd party on-site programs at mass scale and look forward to normalization in the coming months. With CVC as long-term financial partners, a highly competent and dedicated management team and strength of HCG's brand and balance sheet, we are dedicated to the vision of delivering advanced and high-quality cancer care and outcomes to patients, at scale, on pan-India basis. We also continue to drive several initiatives across the organization in areas of social and environmental responsibilities towards all stakeholders and society at large."

HealthCare Global Enterprises is a leading speciality healthcare provider with a focus on cancer care and reproductive medicine. Under the HCG brand, the company operates 20 comprehensive cancer centers across India and Africa, and has brought advanced cancer care to the doorstep of millions of people.

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