Expect margin to remain in double-digits: Narayana Hrudayalaya

Morgan Stanley has recently written a note on Narayana Hrudayalaya. The brokerage is equal weight and believes that the recently added bed capacity will give mid-term growth visibility. However, near term margin pressure is seen until the sites break even.

In an interview to CNBC-TV18, Ashutosh Raghuvanshi, VC & Group CEO of Narayana Hrudayalaya spoke about the expansion and gave his outlook for the future.

Talking about overall healthcare industry, he said individual item bills must have MRPs

He further said that the public listed hospitals are not making undue profits.

On business front, he said capacity expansion includes adding two new hospitals last year; one in Mumbai and second in Delhi.

We will commission one more 200-bed hospital soon, he added.

Raghuvanshi said that new hospitals have their own ramp-up cycle.

We expect matured hospital profit to grow going ahead, he said.

We also expect margin to remain in double-digits, said Raghuvanshi.

Watch accompanying video for more details.