Consolidated Revenue from Operations and Adjusted EBITDA grew by 42.8% and 14% respectively for Q3 FY 23 on a YoY basis

The Board of Directors of Krishna Institute of Medical Sciences Limited (KIMS Hospitals) today approved the financial results for the quarter ending 31st December 2022. A snapshot of Consolidated Financial and Operational highlights are as follows:

Financial Highlights: Q3 FY 23

• Current Quarter includes three months of performance of Nagpur Hospital, whereas, Previous quarter included only one month of performance, post-acquisition of M/s SPANV Medisearch Lifesciences Private Limited wef 1st September 2022.
• Consolidated Key Financials figures are as follows (Rs in Mn) : Key financial figures ex Nagpur Hospitals, also provided for better QoQ comparison since Kingsway hospital, Nagpur has become a subsidiary with effect from 1st Sep’22, and integration of systems and processes along with the cost rationalisation process is underway.
• Consolidated Revenue from operations grew by 42.8% YoY basis to Rs. 5,622 mn.
• Consolidated Adjusted EBITDA (Excluding Other Income, INDAS adjustments, and one-off items) grew by 14% on a YoY basis to Rs. 1470 mn.
• Consolidated Adjusted EBITDA Margin stands at 26.2%; Ex Nagpur stands at 27.2% (an improvement of 0.1% QoQ).
• Recent acquisitions i.e. Sunshine & Nagpur hospital, have shown sequential improvement (ex one-off items) in the EBITDA margin. For Q3 FY 23, Sunshine EBITDA stands at 21.9%, Nagpur EBITDA stands at 11.1%.
• During the quarter, the company acquired an additional stake in three of its subsidiaries: 1.92% in Sunshine hospital, 4.07% in Kondapur hospital and 7.79% in Srikakulam Hospitals. Going forward, we aim to acquire further stake in these units. 
• Company has disposed one of its step-down subsidiaries “Suryateja Healthcare Private Limited” (Sunshine hospital Karimnagar) w.e.f. 1st December’2022.

Operational Highlights – Consolidated

• ARPP and ARPOB have shown improvements at the group level, though IP volume has declined due to the festive season. Going forward, we hope to show healthy growth in all operational parameters.
• The new Unit for Sunshine Secunderabad Hospital is in its final stages of completion, and we aim to shift to this new state-of-art facility by FY 24.
• Projects undertaken at Nashik (Greenfield project) and Bangalore (Semi Brownfield) are progressing well and are expected to be operational by FY 25.
• Vizag Gastro unit is ready and will be operational by FY 24.
• We rolled out applications that automate operational workflows, including Financial Counselling, Relationship Management, and Queue Management, among others, for greater operational efficiencies.

Clinical achievements during the Quarter:

• In a first of its kind in India, doctors at KIMS Secunderabad removed a liver weighing 12 kg.
• A rare case of Insulinoma was successfully treated at KIMS Secunderabad.
• An unusually big tumor of 23.7 kg was removed from the uterus by the surgical oncology team at KIMS Secunderabad.
• A 3-day-old boy with heart complications was operated on successfully at KIMS Cuddles.
• A 7-year-old gets a new lease of life after a series of lower limb surgeries at KIMS Vizag.
• First-ever simultaneous liver and kidney transplant was done on a 50-year-old patient at KIMS Vizag.
• KIMS Nagpur doctors removed an almond stuck for two days in a 11-year-old boy’s lung.
• A rare cartilage transplant surgery was performed at KIMS Hospital, Kurnool.
• The first-ever kidney transplant was done at KIMS Ongole.
• The first-ever Balloon Venoplasty was performed at KIMS Saveera in Anantapur.
• In a first of its kind in Andhra Pradesh, a 92-year-old woman got a stent implanted in a flat 10 minutes at KIMS Anantapur.
• A severely bent spine (95-degree) was successfully corrected at KIMS Sunshine, Hyderabad.
   

Commenting on the performance, Dr. B. Bhaskara Rao, Chairman & Managing Director, said:

“The focus for us in Q3 FY 23 has been on the continued integration of sunshine and Nagpur units. We are confident that the results of these will see fruition in the following 8 to 10 quarters. Onboarding of doctors across units was at a brisk pace. The influx of patients across units has been steady. Despite a small dip in IP numbers, we have recorded growth in our ARPOB and ARPP. Number changes due to seasonality are given in this sector, and we are focused on the bigger picture of providing quality
affordable care, which will eventually help us shore up volumes and achieve the targets set. We remain optimistic that the Q4 FY23 will see steady growth and help us achieve the targets set for FY 23.