Total expenses rose by 26.69% YoY to Rs 323.38 crore in the second quarter, primarily due to higher cost of materials consumed (up 22.32% YoY), employee benefit expense (up 31.94% YoY), higher finance cost (up 35.78% YoY) and higher professional fees to doctor (up 19.80% YoY).
Profit before tax for the quarter stood at Rs 105.35 crore, up by 23.57% from Rs 85.25 crore in same quarter last year.
For Q2 FY25, EBITDA grew 25.11% YoY to Rs 147.08 crore and EBITDA margin reduced to 35.2% from 35.3% posted in Q2 FY24.
For the September 2024 quarter, capacity beds were at 1,935 units (up 16.9% YoY), operational bed count was 1,523 units (up 18.1% YoY) and occupancy rate was 59.9% (up 844 bps YoY).
Average revenue per occupied bed (ARPOB) was Rs 49,770 (down 8.7% YoY) and average length of stay (ALOS) was 2.94 days (up 12.6% YoY) during the period under review.
On the operational front, the company has signed a lease deed, for a brownfield spoke hospital to accommodate 90-beds in a rapidly growing micro market of Electronic City, Bengaluru and expect the hospital to commence operations, post interior works, by Q3 FY26. This will further strengthen Rainbow’s hub and spoke model in Bengaluru.
The firm continues to maintain a robust balance sheet, with cash, cash equivalents, fixed deposits, and mutual fund investments totaling Rs 5,814 million as of 30 September 2024. These funds will support its ongoing capital expenditure plans. With its current cash and anticipated internal accruals in the coming quarters, it is well-positioned to complete all planned capital expenditures using internal resources and the balance of IPO funds.
During the quarter, the company had invested Rs 234 million in capital expenditures towards expanding and enhancing our services at existing hospitals.
Dr. Ramesh Kancharla, chairman & managing director, said, “I am delighted to share that we have delivered a strong performance this quarter led by robust volume growth across all hospitals. We currently have 2000+ beds, including the managed beds, with a right mix of matured and new beds. Our focus remains to drive occupancies and optimize operations across the group along with customer delight. We are confident in our ability to maintain the growth momentum in the upcoming quarters.”
Rainbow Children's Medicare is a multi-specialty pediatric, obstetrics and gynecology hospital chain in India, operating 19 hospitals and 4 clinics in 6 cities, with a total bed capacity of 1,935 beds.