February 27, 2017 / 10:26 IST
Q3FY17 consolidated revenue at Rs 11 bn (up 10% YoY) driven by 9% YoY growth in hospital business at Rs 9.2 bn and 11% YoY growth in diagnostics business (SRL) at Rs 2 bn. EBITDA increased to Rs 1.1 bn mainly due to lower service fee (consolidation of FHTL). Consolidated PBT before forex and exceptional items improved to Rs 160 mn (loss of Rs 270 mn in Q3FY16).
Outlook
Going ahead, we expect PAT growth to accelerate and free cash flow generation. Key growth drivers for the hospital business include organic growth through brownfield expansion, growth through asset light O&M contracts, increasing margin through richer case mix coupled with higher occupancy and focus on medical tourism. Margin in the diagnostic business is set to improve, as labs mature. Recommend HOLD with TP of Rs 198 (SoTP on Page 2).
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