Rainbow Children’s Medicare posts Q1 profit decline of 4.2% at Rs 39.73 crore due to cost of new hospitals

Rainbow Children’s Medicare Limited (RCML) on Tuesday announced its financial results for the first quarter ended June 30, 2024. Its fiscal first quarter profit stood at Rs 39.73 crore, down 4.2 per cent in comparison to Rs 41.49 crore during the corresponding quarter of FY24.

It posted revenue from operations at Rs 330.22 crore, up 15 per cent as against Rs 287.17 crore during the same period of previous fiscal year. The company EBITDA was up 6.8 per cent at Rs 93.7 crore.

According to the company’s statement, it successfully completed a significant expansion last quarter, inaugurating three new hospitals with a combined capacity of 280 beds to enhance their hub and spoke network in Hyderabad, Bengaluru and Chennai.

In the current quarter, the company achieved a robust 15 percent revenue growth. “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. We saw progress across all key operating metrics including outpatient footfalls, inpatients and deliveries,” the company said in a statement.

“I am delighted to share that we have delivered a strong performance this quarter. Our revenue for Q1 FY25 reached Rs. 330.2 crore, marking a robust 15% increase from Rs. 287.2 crore in Q1 FY24.  EBITDA for the quarter was Rs. 93.7 crore, reflecting a growth of 6.9% compared to Rs. 87.7 crore in Q1 FY24. Although our PAT for Q1 FY25 was Rs. 39.7 crore, a decrease of 4.2% from Rs. 41.5 crore 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 customer delight. We are confident in our ability to drive growth in the upcoming quarters,” Dr. Ramesh Kancharla, Chairman & Managing Director of Rainbow Children’s Medicare Limited, said in a statement.
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