Yatharth Hospit.

Yatharth Hospitals reported a robust Q3 FY25 with revenue reaching ₹219.2 crores, a significant 31% year-on-year increase. EBITDA grew 18% YoY to ₹54.9 crores, resulting in an EBITDA margin of 25.1%. Profit after tax (PAT) saw a 3% YoY growth, totaling ₹30.5 crores. The company's in-patient volumes increased by 36% YoY, and out-patient volumes by 12% YoY, indicating strong operational traction. For the nine months ended FY25, revenue was ₹648.7 crores (up 32% YoY) and EBITDA was ₹163.2 crores (up 22% YoY), with an overall group occupancy of 61%.

Average Revenue Per Occupied Bed (ARPOB) for Q3 FY25 increased 4% YoY to ₹30,652. This growth is primarily attributed to an increased focus on super specialty services, with oncology now contributing 21% to Noida Extension's revenue and 10% to the group's overall revenue, a 150% increase from last year. Noida Extension Hospital recorded the highest ARPOB at ₹37,886, driven by 70% contribution from super specialty services. Management expects ARPOB to continue growing at 10% yearly for the next three to four years, aiming to bridge the gap with peers.

The company has completed payments for two newly acquired hospitals in New Delhi and Faridabad, adding approximately 300 and 400 beds respectively. These hospitals are planned to be operational from Q1 FY26. Management anticipates these new facilities to achieve breakeven within 18 months to two years and a payback period of four to five years, similar to past acquisitions. The Greater Faridabad Hospital, operational since mid-May, contributed 5% to the group's revenue and achieved an ARPOB of ₹34,365 in Q3 FY25, with profitability expected within nine months of the next financial year.

Management provided an update on the income tax matter, stating that while ₹60 crores of assets are currently provisionally blocked, a majority of the initially blocked funds (around ₹250 crores) have already been released. They are actively cooperating with the authorities and have been assured that the provisional blocking will be released very soon, with no plans to provide FDs in exchange. The company does not anticipate any significant material financial or operational liabilities from these proceedings and expects the matter to be closed before the end of the calendar year.

Yatharth Hospitals is strategically reducing its dependency on government business, targeting a government payor mix of not more than 25% within 2.5 years, down from approximately 35% in 9M FY25. This shift is expected to further boost ARPOB. The company is also focused on reducing receivable days, aiming to close FY25 at around 110 days and achieve a steady state of 75-80 days within 2.5 years. Dedicated recovery teams and outsourced channels are being utilized to manage receivables from both government and private insurances.

The company highlighted several clinical achievements, including the first Cochlear Implant Surgery, complex heart surgeries, and Coronary Artery Bypass Grafting procedures. In line with its vision for cutting-edge technology, Yatharth Hospitals added Interlaminar Spinal Endoscopy in Noida Extension and initiated Therapeutic Nuclear Medicine and Radiotheranostics (Lutetium Therapy). These advancements are aimed at elevating care quality and offering high-end oncology specialization services, contributing to higher ARPOB and attracting leading specialists.