Q1 2027 Artemis Medicare Services Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 12.7% YoY to INR287.35 crore, with standalone Gurugram revenue up 15.4%.
- EBITDA margin improved to 21.5%, driven by economies of scale, better case mix, and operational efficiencies.
- PAT surged 48.9% YoY to INR31.56 crore, reflecting strong operating leverage.
- Commenced operations at Artemis Shanti Hospital in Raipur, expanding presence into Central India with a 300-bed facility.
- International patient business remained resilient at 27% of revenue despite the West Asian war, with plans to improve to 30% in Q2.
- Approved QIP and expansion plans (Tower 4 in Gurugram, South Delhi) to reach 2,000 operational beds by FY2030.
- Gurugram hospital occupancy at 65.7% with ARPOB rising to INR85,690, indicating strong demand and premium case mix.
- Management confident of achieving 23-24% EBITDA margins in Gurugram over the next 2-3 years.
- Raipur hospital is fully operational except for PET CT and radiotherapy, with insurance empanelment expected in 8-10 weeks.
- Tower 4 expansion (200+ beds) to focus on advanced pediatric and women's care, leveraging existing capabilities and expected to break even in 8-10 months.
- International patient mix declined slightly to 27% from 30% due to the West Asian war, impacting revenue contribution.
- Raipur hospital is in early ramp-up phase, expected to incur around INR20 crore operating losses over 15-18 months before breakeven.
- Tower 4 expansion requires significant capital (INR120 crore) and will take 18-22 months to operationalize, delaying capacity addition.
- Daffodils and other smaller centers face capacity constraints and muted performance, requiring consolidation or integration.
- Planned QIP of INR700 crore may lead to equity dilution, though management aims to minimize it.
- Total CapEx of INR800 crore over the next three years, including INR250 crore deposit for Vimhans, will strain cash flows and may necessitate debt or equity funding.
- Insurance empanelment for Raipur is not yet complete, potentially limiting patient volumes initially.
- Competition in Gurugram's pediatric and women's care segment is intensifying, with new entrants like Rainbow Children's Hospital.
- Occupancy at 65.7% is still below the 70% target, indicating room for improvement in patient volumes.
- Management did not provide detailed segment-wise financials for cardiac care and Daffodils, limiting transparency.
Ladies and Gentlemen, Good day and welcome to Artemis Medicare Services Limited Q1 FY'27 Earnings Conference Call hosted by Anand Rathi Share and Stock Brokers Limited
(Operator Instruction) Mr. Himanshu Binani, Anand Rathi Share and Stock Brokers Limited.
Thank you, Neerav.
Good day everyone and welcome to the Q1 FY'27 Earnings Conference call of Artemis Medicare, hosted by Anand Rathi Shares and Stock Broking.
From the management, we have Dr. Devlina Chakravarty, Managing Director, Mr. Sanjiv Kumar Kothari, CFO of the company, and Mr. Rudra Narayan Acharjee, Head Investor Relations.
I would like to thank the management for giving us this opportunity to host this call.
We'll begin the call with a brief in Master Management, post which we'll have the session open for Q&A.
Without further ado
I would like to hand over the call to Dr. Devlina. Thank you and over to you, ma'am.
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