Total expenses rose by 20.64% YoY to Rs 288.79 crore in the first quarter, primarily due to higher cost of materials consumed (up 10.63% YoY), employee benefit expense (up 12.39% YoY), higher finance cost (up 24.3% YoY) and higher professional fees to doctor (up 21.65% YoY).

Profit before tax for the quarter stood at Rs 53.35 crore, down by 4.08% from Rs 55.62 crore in same quarter last year.

For Q1 FY25, EBITDA grew 6.9% YoY to Rs 93.72 crore and EBITDA margin reduced to 28.4% from 30.5% posted in Q1 FY24.

For the June 2024 quarter, capacity beds were at 1,935 units (up 17% YoY), operational bed count was 1,523 units (up 18% YoY) and occupancy rate was 42.4% (up 151 bps YoY).

Average revenue per occupied bed (ARPOB) was Rs 56,212 (down 6% YoY) and average length of stay (ALOS) was 2.76 days (up 11% YoY) during the period under review.

On the operational front, the company achieved a robust 15% revenue growth, reflecting our successful operational strategies and market positioning. Despite the traditionally slower summer period, our performance underscores the strength and resilience of our business model. While EBITDA growth was moderated due to the initial costs associated with our new facilities, we are confident in the long-term value of these investments.

The firm continued to maintain a robust balance sheet and have cash & cash equivalent, fixed deposits and mutual fund investments aggregating to Rs 518 crore as of 30 June 2024. These funds will support ongoing capital expenditure plans. With the current cash flow and anticipated internal accruals in coming quarters, the company is well-positioned to complete all planned capital expenditures using internal resources and balance IPO funds.

During the quarter, the company invested Rs 56.7 crore in capital expenditures towards expanding and enhancing our facilities.

Dr. Ramesh Kancharla, chairman & managing director, said, “I am delighted to share that we have delivered a strong performance this quarter. Although our PAT for Q1 FY25 was Rs. 397 Mn, a decrease of 4.2% from Rs. 415 Mn in Q1 FY24, this is attributable to the initial costs associated with our new 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 custromer delight. We are confident in our ability to drive growth 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.

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