- 11 Nov 2022
- ICICIdirect Research
ASTER DM SALES UPBEAT WITH MISS ON MARGIN FRONT
ASTERDM - 506 Change: 3.30 (0.66 %)News:
Revenue increased 6% QoQ to Rs2816 crore, driven by strong growth in Indian hospitals followed by growth in GCC. EBITDA improved 9.2% to Rs319 crore. EBITDA margins improved 35 bps QoQ to 11.3%, which was led by strong margin improvement in India hospitals but was offset by subdued performance by Aster Clinics. Net profit declined 32.6% QoQ at Rs46.2 crore, mainly due to higher employee and other expenses
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Aster reported numbers, which were a beat on our estimates on the sales front but missed on the margins front as the strong margin performance by Indian Hospitals ( 21% in Q2FY23 vs. 17.2% in Q1FY23) was offset by Aster clinics (12.5% in Q2FY23 vs. 16.9% in Q1FY23). Aster’s India hospitals posted robust 8.1% sequential growth on the back of increase in occupancy levels in both matured and new hospitals touching 69% and 48% respectively in H1FY23. GCC business is expected to show resilient performance in H2 due to seasonality
Impact:
Positive