Yatharth Hospital extends rally, surges 29% in a week on strong Q1 results

In Q1FY24, average revenue per operating bed (ARPOB) increased to Rs 28,140, compared to Rs 27,706 in Q4FY23 and Rs 26,457 in Q1FY23.

Shares of Yatharth Hospital & Trauma Care Services surged 6 per cent to Rs 404 on the BSE in Thursday’s intra-day trade. In the past one week, the stock appreciated 29 per cent after the company reported strong earnings, with earnings before interest, taxes, depreciation, and amortisation (Ebitda) up 61 per cent year-on-year (YoY) to Rs 41.4 crore in the June-ended quarter ((Q1FY24).

The stock traded at its highest level since market debut on August 7. With one week rally, shares of Yatharth Hospital traded 35 per cent higher over its issue price of Rs 300 per share.

In Q1FY24, the company’s revenue grew 39 per cent YoY to Rs 154.5 crore, while profit after tax (PAT) increased 73 per cent YoY at Rs 19 crore. Ebitda margin, too, improved 370 bps to 26.8 per cent in Q1FY24 from 23.1 per cent, in a year ago quarter.

Average revenue per operating bed (ARPOB), on the other hand, increased to Rs 28,140 versus Rs 27,706 in Q4FY23 and Rs 26,457 in Q1FY23.

The management said that the past few quarters witnessed successful ramp-up of organ transplant and oncology treatments.

“We are further strengthening our specialties, offering a full suite of oncology treatments, and expanding our organ transplant operations, which is expected to drive ARPOB improvement in the upcoming quarters,” the management added.

Yatharth Hospital has presence in Noida, Greater Noida, and Noida Extension and Jhansi (Orchha) with four hospitals and a total bed capacity of 1,405 beds. Their hospitals in Noida Extension and Greater Noida are 8th and 10th largest private hospitals of Delhi NCR, respectively, in terms of the number of beds as of FY23.

India’s current healthcare expenditure is largely dominated by private expenditure. The Northern India regions have lower than average doctor and nurse density per 10,000 population.

Analysts at Reliance Securities expect this to improve going ahead favouring the company’s expansion plans. 

"The rising focus on building capabilities for new, more advanced and high demand specialities can lead to higher ARPOB," the brokerage firm added.