Narayana Hrudayalaya surges 9%, hits record high
Shares of Narayana Hrudayalaya rallied by 9 percent in the intra-day session and hit a record high of Rs 392 on the BSE on Friday in an otherwise range-bound market.
The stock of the healthcare services provider surpassed its previous high of Rs 389 touched on January 29, 2020. At 12:45 pm, the stock was trading 4 percent higher at Rs 372 as compared to a 0.10 percent decline in the S&P BSE Sensex.
In the July-September quarter (Q2FY21), Narayana Hrudayalaya had reported healthy operational performance sequentially with consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 37.2 crore as against a loss of Rs 86.3 crore in Q1FY21. EBITDA margins, on the other hand, were at 4.5 percent as against -23.1 percent in Q1FY21 and 14.8 percent in Q2FY20. Consolidated operating income grew 52.7 percent to Rs 600.7 crore from Rs 393.5 crore in the previous quarter.
The company’s monthly consolidated revenue reached around 90 percent of pre-Covid (Feb, 20) levels in the month of September, as per disclosure by the company. However, flagship facilities across Bengaluru and Kolkata continued to remain impacted given their pre-eminence in the cardiac sciences based elective domain as well as a higher reliance on out-of-station domestic and international patients.
“However, units at Delhi-NCR and hinterland regions continue to demonstrate robust traction. The facility at the Cayman Islands closed yet another quarter with the highest ever quarterly revenues,” it said.
Notwithstanding a fresh wave of the pandemic, as is being witnessed across in certain parts of the world, the company expects to progress towards normalcy with improving sentiments, and expects a faster recovery as patients’ mobility improves both at domestic and international fronts.
“Despite Covid-related challenges, the company posted a substantial improvement in operational performance. Also, in September, the company’s monthly consolidated revenues reached around 90 percent of pre-covid (Feb’ 20) levels. We continue to believe in the long-term prospects of the company on the back of asset-right model and affordability philosophy,” ICICI Securities had said in a recent note.