09 August 2019 | News
Revenue for Q1 FY20 of Rs 2,689 Million
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HealthCare Global Enterprises Limited (“HCG”), the leader in India in speciality healthcare services focused on oncology, fertility and precision diagnostics has announced its financial results for the quarter (“Q1”) ended June 30 for fiscal year (“FY20”).
Effective 1 April 2019, the Company has adopted IND AS 116 'Leases' standards, applied to lease contracts existing on 1 April 2019. The effect of this adoption have not been retrospectively adjusted for the year ended 31 March 2019 and previous period financials are not comparable.
Highlights for quarter ended 30th June 2019-
Business Updates for Q1 FY20-
o Presence across 4 cities, now contributes 31% to HCG centers revenues:
o 78% revenue growth at Bhavnagar driven by ramp up of the new oncology unit
o Baroda cancer center, launched in May’ 2016, clocking double digit EBITDA margin consistently
o Rajkot center ramping up well with reduction in losses, nearing break-even point
o Continued reduction in losses from Borivali and Nagpur new centers
o Nashik center expansion driving enhancement of specialized service offerings in the region
Commenting on the results, Dr. B.S. Ajaikumar, Chairman and CEO, HealthCare Global Enterprises Ltd. said, “We are pleased to report Q1 FY20 results with continuing growth across ourbusinesses. Our core HCG oncology business continues to get stronger with enhanced presence and scale across attractive markets, at a time when cancer incidences are on a rising trend. Our oncology focused business model is fundamentally robust - clinical and operational excellence, economies of scale and especially with majority capex and investment cycle behind us, we remainexcited about the growth prospects for the business, in spite of short-term challenges and negative outlook in the ecosystem for healthcare, industry and economy at large. With strong performance of existing centers as the base foundation, and new centers nearing inflexion point to replicate the existing centers as the future growth drivers, we are positively looking forward towards superior cash flows and return generation from the capital deployed over the last few years. Having created a unique platform across oncology, fertility and precision diagnostics, with Pan-India leadership, we remain committed to driving value creation for all our stakeholders.”