Narayana Hrudayalaya declines after reporting Q1 net loss of Rs 120 cr

Narayana Hrudayalaya fell 1.55% to Rs 285.10 after the company reported consolidated net loss of Rs 119.76 crore in Q1 June 2020 compared with net profit of Rs 30.28 crore in Q1 June 2019.

Consolidated net sales tanked 49.4% to Rs 393.50 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 153.45 crore in Q1 June 2020 as compared to a pre-tax profit of Rs 43.28 crore in Q1 June 2019. The result was announced post market hours yesterday, 4 August 2020.

EBITDA loss during the quarter stood at Rs 86.30 crore as against profit of Rs 107.60 crore in Q1 FY20. As on 30 June 2020, the consolidated net debt was at Rs 575.80 crore representing a net debt to equity ratio of 0.57 (out of which, debt worth $46.20 million is foreign currency denominated).

Commenting on the Q1 performance, Dr Emmanuel Rupert, the managing director (MD) and group chief executive officer (CEO) of Narayana Hrudayalaya, has staed that: "With the full impact of COVID-19 induced lockdown and travel restrictions playing out in the first quarter, we registered operational losses on the expected lines. While the month of April bore the brunt in terms of the operations, there has been a steady uptick in business with us almost breaking even at the consolidated EBITDA level in June at the revised cost structure, aided by the sharp bounce back in our overseas operations at Cayman Islands."

"Despite the lack of meaningful traction at our flagship centres, we are encouraged by the momentum generated by the hinterland facilities and would like to believe that the worst is behind us notwithstanding any fresh or stringent lockdown restrictions getting restored. Looking ahead, amidst all the uncertainty around us, we continue to tread with utmost caution and aim to judiciously deploy our resources in these testing times and embark on a fresh journey to adapt and thrive in the post-COVID world."

Narayana Hrudayalaya operates a chain of multi-specialty, tertiary and primary healthcare facilities. The Company has a network of 21 hospitals and 5 heart centres across India and single hospital at Cayman Islands and a heart centre at Chittagong, Bangladesh.

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