Yatharth Hospital shares plunge 7% after margins fall in Q2 earnings

Shares of Yatharth Hospital & Trauma Care Services plummeted 6.77 per cent at Rs 612.75 a piece on the BSE after the company reported a slight drop in operating margin in second quarter earnings for the financial year 2024-25 (Q2FY25). 

Yatharth Hospital reported a 11.9 per cent increase in its consolidated net profit for the September quarter, which stood at Rs 30.9 crore, compared to Rs 27.6 crore in the same period last year.  

The company’s revenue rose to Rs 218 crore in Q2FY25 from Rs 170 crore Q2FY24, marking a 28.23 per cent increase year-on-year. Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 54.6 crore, up from Rs 45.6 crore last year, with an Ebitda margin of 25.09 per cent, slightly lower than 26.60 per cent in the same quarter last year. 

 

Yatharth Hospital reported an improvement in occupancy to 61 per cent during the first half of FY25, compared to 54 per cent in the same period last year (H1FY24). The average revenue per occupied bed (ARPOB) also showed a positive growth, rising by 10 per cent year-on-year to Rs. 30,597 in H1FY25.  

The hospital's working capital days improved to 104 days as of September 30, 2024, down from 112 days as of March 2024. The return on capital employed (ROCE) stood at 23 per cent, reflecting the impact of the Faridabad acquisition, the company said in a statement.  

Additionally, Yatharth Hospital maintained a strong liquidity position, with net cash amounting to Rs. 1,541 million as of September 30, 2024.

Yatharth Hospital  share price history

The company’s stock has outperformed the market year to date as it has risen 66 per cent, while gaining 60.4 per cent in the last one year. In comparison BSE Sensex has risen 10.1 per cent year to date and 22.5 per cent in a year. 

 

The company has a total market capitalisation of Rs 5,323.14 crore. Yatharth Hospital’s shares are trading at a price to earnings multiple of 61.64 times and at an earning per share of Rs 10.66. 

 

At 10:20 AM; the stock of the company slipped 5.67 per cent at Rs 620 a piece. By comparison, the BSE Sensex was up 0.6 per cent at 79,654.27.