HCG Q4FY22 Highlights 

 

Operational Highlights:-

    • HCG now has 40+ Oncologist Experts recruited in this quarter with a strength of 450 Overall Doctors.
    • HCG Introduced First Microsoft Holo Lens which is nothing but the Next Generation Holographic Headset for the Virtual Reality System.
    • Provides Healthcare Training & Medical Education Of Metaverse with 200 Virtual Content.
    • Ranked No1 Cancer centers in 12+ Cities.
    • HCG Discontinued Kochi Plan & take the investment back of 2.5 Cr.
    • Consolidated Revenue of 364.6Cr, EBITDA of Rs.66.1Cr as compared to 43.1Cr in the corresponding quarter in the previous year (Q4FY21). 
    • Operational EBITDA for Existing Center is 61 Cr. with 17.3% EBITDA Margin.
    • Operating EBITDA for New Centers is 2.1Cr as compared to a loss of 4.8Cr in Q4FY21.
    • Proforma PAT is 6.7Cr including the Project cost fee of 2.5cr from the Discontinuation of Kochi Center.
    • The region-wise Contribution, Karnataka Region Contributed 36% of revenue, Gujrat Contributed 26% of Revenue & Maharashtra Contributed 17% of Revenue.
    • Revenue From New Centers is 82.6Cr compared to 53.5Cr in Q4FY21. With 54.3% Growth 
    • Center Of Excellence Revenue Growth is 39.6% with 59,800rs/Day ARPOB.
    • In Gujrat-Oncology Center Revenue Growth is 43%, and Multispeciality Growth is 38%.
    • In Maharashtra, Nagpur & Borivali Center Grew by 79% YOY. , East India Grew By 34%YOY.
  • CAPEX of HCG Centers, For Existing Center 45.8Cr & 24.6Cr for new Centers.
  • Net Debt of Rs.697.2Cr
  • Q4FY22,ARPOB is 36,697rs/Day & AOR is 60%
  • Overall ARPOB for FY22 is 38,805rs/Day.

 

Project Updates:-

  • Started Investment in Robots Digital Platform.
  • HCG started recruiting the Senior team for better Oncology Treatment.
  • HCG Discontinued Kochi Plan & take the investment back of 2.5 Cr.
  • HCG will be starting the phase II In Ahmedabad with Dedicated Oncology Center

 

Q&A Highlights

  • HCG is not looking for any New Centers, and try to focus on its consolidation.
  • March has ended with the Highest International Patient growth of 4% on the top line despite Covid-19 Inflation.
  • HCG will be starting phase II In Ahmedabad with Dedicated Oncology Center.
  • HCG Also focuses on Banglore Center, as the Replacement for Equipment & All other stuff in which their more CAPEX investment as a Replacement CAPEX.
  • Center of Excellence, ROCE is 25% – 26%, Ahmedabad ROCE is more than the COE as it is a Multispecialty Hospital.
  • Because of Low Cost & Higher Asset Turnover, The EBITDA Margin is 20% for an existing center in Tier2 and Tier3 cities.
  • 50+ Oncologists in Tier2, Tier 3 Cities.
  • Nashik Center is in Partnership with Raj Nagarkar who is also an oncologist in the Nashik region. HCG gets the 51% Stake & Raj Nagarkar gets the 49% Stake in this partnership Model.
  • Nashik Center has 220Beds & 3Linear Accelerator.
  • Raj Nagarkar is also a Partner with Kims Hospital which is a Multispecialty Hospital.
  • Multiple DIgital Initiative has been taken in this quarter.