Aster DM stock soars 8% on stellar Q1 earnings show

Aster DM Healthcare delivered an all-round performance in Q1.

Shares of Aster DM Healthcare soared around 8 percent on August 1 as investors lauded the company's solid quarterly performance. The hospital chain reported its highest ever revenue in the April-June quarter following the separation of the company's GCC business.

Revenue for the quarter grew 20 percent on year to Rs 1,002 crore, while net profit rose 80 percent to Rs 74 crore. In addition, the company's operational performance also improved as EBITDA margin expanded to 17.7 percent in Q1 of FY25, up from 15.3 percent in the year ago period.

"With the successful segregation of our GCC business, we are now a pure-play India entity, as we embark on a new journey FY25 onwards. In Q1 FY25, our India business delivered the highest ever revenue performance, aided by an increase in bed capacity and growth in ARPOB (Average Revenue Per Occupied Bed),” said Dr Azad Moopen, Founder and Chairman, Aster DM Healthcare.

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The company is also on track to expand its capacity to over 6,500 beds by FY27.

On a segmental basis, the company's core hospital and clinics business achieved an operating EBITDA margin of approximately 21 percent, while that for matured hospitals (operational for over six years) was at 23.2 percent. The Whitefield hospital in Bengaluru reached 65 percent occupancy and an ARPOB exceeding Rs 70,000.

Additionally, the payor mix improved, with the insurance business rising by 200 basis points to 30 percent, offset by a decline in scheme business. The Karnataka and Maharashtra cluster saw a revenue growth of 38 percent year-on-year and a 55 percent increase in operating EBITDA.

At 3.11 pm, shares of Aster DM Healthcare were trading at Rs 365.05 on the NSE.

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