- 23 May 2022
- ICICIdirect Research
Narayana reports recovery in March post third wave disruptions
NH - 1269 Change: 2.45 (0.19 %)News: Narayana quarterly results were in line with I-direct estimates. Revenues grew 12% YoY to Rs. 941 crore. On the EBITDA front, margins improved 173 bps YoY to 18.6% while EBITDA grew 24% YoY to Rs. 175 crore. Profit for the quarter was flat YoY at Rs. 69 crore. Delta vis-à-vis EBITDA was mainly due to higher tax expense in the quarter
Views: Narayana’s Indian operations were impacted due to third Covid wave induced disruptions and resulted in sequential decline in Q4, which historically is a strong quarter for Narayana. Q4 was aided by strong recovery in India operations in March,2022 and continued momentum in operations at Cayman Islands and hospital project management at St. Lucia. The margin performance has improved on the back of lower consumable expense. The improvement in numbers over the last few quarters is on the back of judicious case mix identification (more focus on oncology, transplants and non-invasive procedures). We continue to believe in the long term prospects of the company on the back of an asset-right model and affordability philosophy
Impact: Positive