Aster DM Healthcare Q3 Results Review

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Aster DM Healthcare Ltd.’s revenues grew 13.3% QoQ to Rs 3192 crore, supported by robust growth from GCC business, which came in at Rs 2550 crore, up 17.3% QoQ followed by 1.7% QoQ growth in India business at Rs 735 crore.

In GCC, hospitals improved 11.5% QoQ to Rs 1059 crore, clinics grew 25.4% QoQ to Rs 662 crore and pharmacy grew 19.3% QoQ to Rs 829 crore.

Ebitda margins improved 273 basis points QoQ to 14.1% while Ebitda grew 40.7% QoQ to Rs 449 crore. Subsequently, net profit increased 201.6% QoQ to Rs 139 crore.

Aster DM posted a strong set of numbers, which were a beat on our estimates on the revenue front but missed on the margin front. Beat on revenue was propelled by the strong rebound in GCC business post-holiday season.

We are positive on Aster’s integrated business model and Aster’s growth strategy for India to add brownfield facilities with low capex investment but high potential opportunity.

We expect a gradual margin and return on capital employed improvement on the back of higher occupancy and capacity optimisation in newer assets.

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