Narayana Hrudayalaya (NS:NARY) Ltd., a prominent healthcare provider, reported a 12.3% decline in its consolidated net profit for the second quarter of FY25, ending September 30, 2024. Net profit dropped to INR 198.8 crore, down from INR 226.7 crore in the same quarter last year. Despite the dip in profits, the company achieved a 7.3% year-on-year increase in consolidated operating revenue, which reached INR 1,400 crore, up from INR 1,305.2 crore in Q2 FY24.
EBITDA for the quarter was INR 332 crore, reflecting a stable margin of 23.7% and a slight rise of 1.7% YoY. This increase was attributed to the company's enhanced focus on domestic operations and an uptick in patient footfall. Narayana Hrudayalaya’s India operations performed strongly, with an 11% YoY revenue increase to INR 1,168.4 crore, while the Cayman Islands segment reported a 7% YoY revenue drop to INR 242.3 crore, affected by a slowdown in international patient inflows due to geopolitical tensions.
Dr. Emmanuel Rupert, Narayana Hrudayalaya’s Managing Director and Group CEO, expressed satisfaction with the record-high revenue, crediting it to improved realizations and a stronger domestic patient base. Despite headwinds from reduced international patient flow, Dr. Rupert highlighted growth across flagship units, regional hospitals, and newer facilities, signaling confidence in the group’s expansion and profitability trajectory.
The company’s debt remains well-managed, with net borrowings of INR 268.4 crore and a net debt-to-equity ratio of 0.08, including foreign currency-denominated debt of $81.5 million.
Even with the highest-ever revenue this quarter, the valuation seems a bit stretched. As per the revolutionary InvestingPro+’s fair value feature, the real worth of the stock is INR 1,101.3 per share, which has been arrived at after carefully going through a massive 14 financial models.
This depicts a downside potential of 11.8% from the CMP of INR 1,248.2 per share. Even ProTips has raised the valuation concern for this stock hence, investors wanting to go long on this counter might be in a better position if they wait for some correction. Investors should always have a glance at ProTips to gain valuable insights about a stock at their fingertips.
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