Yatharth Hospital shares hit record high on robust Q3, acquisition of Fidelis Hospital

Shares of Yatharth Hospital and Trauma Care Services hit a new all-time high on Monday as the stock maintained an uptrend for the fifth consecutive session. The smallcap healthcare stock got a boost today after the Noida-based super specialty hospital reported strong financial performance in the December quarter and also announced the acquisition of Faridabad-based multi-specialty Asian Fidelis Hospital for ₹116 crore.

Cheering the news, Yatharth Hospital shares gained as much as 3.7% to scale a new height of ₹459.85 on the BSE. The smallcap healthcare stock, having a market capitalisation of ₹3,850 crore, has surged 51% against its lowest level of ₹304 touched on its listing day, August 7, 2023. At the current level, the counter has risen 53% compared to its IPO price of ₹300 per share, while its market cap has increased by over ₹100 crore since its listing. In the last five sessions, Yatharth Hospital shares have gained 22.5%, while it has surged 17% in a month, and 33% in the past six months.

Yatharth Hospital released its December quarter earnings on Saturday, reporting a 39% growth in profit after tax (PAT) at ₹29.5 crore as compared to ₹21.3 crore in the year ago period. Sequentially, the PAT rose 7% from ₹27.6 crore in Q2 FY24.

In Q3 FY24, revenue from operations surged 21% to ₹166.8 crore as against ₹137.5 crore in the same period last fiscal. However, the revenue dropped 3% quarter-on-quarter from ₹171.3 crore in September quarter of FY24.

On the operating front, EBITDA rose 29% YoY and 2% QoQ to ₹46.4 crore, while margin improved by 160 basis points annually to 27.8% in Q3 FY24.

During the quarter under review, the bed occupancy stood at 52%, compared to 49% in Q3 FY23, while average revenue per occupied bed (ARPOB) was at ₹29,309, up 14% YoY and 6% QoQ.

“This quarter marked the introduction of robotic surgeries at our Noida Extension hospital and the expansion of our organ transplant program to include liver transplants. These endeavors underscore our commitment to advancing healthcare technologies and offering comprehensive, state-of-the-art solutions. These initiatives have not only improved our case mix but also boosted our ARPOB and overall profitability. Achieving a debt-free status further enhances our financial flexibility, enabling us to allocate resources more efficiently and strategically pursue growth opportunities,” says Yatharth Tyagi, Whole Time Director, Yatharth Hospital.

In a separate exchange filing, the company said that it has signed a definitive agreement with Pristine Infracon Pvt Ltd and its shareholders for acquisition of Faridabad-based Asian Fidelis Hospital by way of 100% equity share purchase at a consideration of ₹116 crore. The transaction is expected to consummate by March 2024 and the hospital is ready to be operationalised immediately upon acquisition, as necessary approvals, NABH accreditations and empanelment with all major insurance/TPAs are in place, the release noted.

Yatharth Tyagi says that the acquisition of Asian Fidelis Hospital will further bolster its presence in the Delhi NCR market. “This acquisition aligns with our company's strategy of expanding its footprint in the North India region,” he says. 

Few years back, the company acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh, which commenced commercial operations from April 10, 2022.

With these acquisitions, the total bed capacity of Yatharth Hospital has increased to 1,405 beds. In addition, its critical care program comprises 394 critical care beds, as of December 31, 2023.

Incorporated in 2008, Yatharth Hospital and Trauma Care Services is a private super-speciality hospital chain located in the National Capital Region (NCR) of Delhi, operating three hospitals at Noida, Greater Noida and Noida Extension.