Yatharth Hospital shares surge over 10% on stellar Q2 performance

Shares of Yatharth Hospital & Trauma Care Services, one of the leading private super specialty hospitals in Delhi NCR, jumped 10.75% to ₹414.95 apiece in Wednesday's early trade. This strong spike was in response to the company's stellar performance in Q2FY24.

The company on Tuesday posted a 34% YoY improvement in revenues, reaching ₹171 crore. It reported a 36% YoY rise in EBITDA at ₹45.6 crore, while the EBITDA margin improved by 40 basis points YoY to 26.6%.

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On the bottom line, the company's consolidated net profit jumped to ₹27.6 crore, a 70% improvement compared to a net profit of ₹16.2 crore recorded in the corresponding period of last year. 

The bed occupancy rate improved to 57% in Q2FY24 compared to 45% in Q2FY23 and 50% in the preceding June quarter. The Average Revenue Per Occupied Bed (ARPOB) came in at ₹27,561 in Q2FY24, up 5% YoY. 

Commenting on the performance, Yatharth Tyagi, Whole Time Director, Yatharth Hospitals, said, “We are delighted to announce another exceptional quarter of performance. Our revenue has experienced a remarkable 34% year-over-year growth, reaching ₹171 crore, while our profit after tax (PAT) has surged by an impressive 70% compared to the same period last year.”

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“We are happy to announce that we have turned net debt-free during the quarter. Our ongoing commitment revolves around diversifying our range of medical specialities and introducing new ones across all our hospitals. We are well on track to offer robotic surgeries by the coming quarter and a comprehensive suite of oncology treatments by the fourth quarter of this fiscal year.”

"We are also expanding our organ transplant and growing our medical tourism business, which is posed to drive substantial growth and contribute to an improvement in Average Revenue Per Occupied Bed (ARPOB) in the upcoming quarters," he added.

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Incorporated in 2008, Yatharth Hospital and Trauma Care Services Limited (YHL) is a multi-care hospital chain. It ranks among the top 10 largest private hospitals in the National Capital Region of Delhi. Yatharth Hospital presently operates three superspeciality hospitals situated in Delhi NCR, i.e., at Noida, Greater Noida, and Noida Extension, Uttar Pradesh.

On August 7, 2023, the company's shares debuted on the Indian stock exchanges with a listing gain of 11% at ₹333 apiece, as compared to the issue price of ₹300. Yatharth Hospital had raised approximately ₹687 crore through its initial public offering (IPO).

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The IPO, which was available for subscription from July 26 to July 28 in the price range of ₹285–300 per share, garnered an impressive subscription of 37.28 times from investors. Taking the current trading price of ₹394, the stock is trading 31% higher than its issue price.

At 11:30 AM, the stock was trading with a gain of 5% at 394 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.