Yatharth Hospital and Trauma Care Services Limited is a prominent healthcare provider operating in the National Capital Region of Delhi ("Delhi NCR") and beyond. The company currently operates three super specialty hospitals in Delhi NCR, namely in Noida, Greater Noida, and Noida Extension, Uttar Pradesh.
Recently, Yatharth Hospital expanded its operations with the acquisition of a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh, near Jhansi, Uttar Pradesh. This hospital, named Jhansi-Orchha, began commercial operations on April 10, 2022, and is now one of the largest hospitals in the Jhansi-Orchha-Gwalior region in terms of bed capacity. With this addition, the total number of beds under Yatharth Hospital's management has increased to an impressive 1,405 beds.
The company places great importance on providing critical care services and, as of March 31, 2023, it offers 394 critical care beds across its hospitals.
Yatharth Hospital and Trauma Care Services Ltd. IPO Details
Yatharth Hospital IPO is a fresh issue aggregating up to ₹610 crore and has an offer for sale aggregating to 6,551,690 shares of ₹10 each. The price band is set between ₹285 to ₹300 per share. It will list on BSE and NSE.
Yatharth Hospital IPO Objectives
The company proposes to use the net proceeds from the issue towards funding:
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Repayment/ prepayment, in full or part, of certain borrowings availed by the company.
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Repayment/ prepayment, in full or part, of certain borrowings availed by the subsidiaries, namely, AKS Medical & Research Centre Private Limited and Ramraja Multispeciality Hospital & Trauma Centre Private Limited.
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Funding capital expenditure expenses of the company for two hospitals, namely, Noida Hospital and Greater Noida Hospital.
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Funding capital expenditure expenses of the subsidiaries, AKS and Ramraja, for respective hospitals operated by them.
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Funding inorganic growth initiatives through acquisitions and other strategic initiatives.
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General corporate purposes.
Peer Details
Fortis Healthcare Limited, Apollo Hospitals Enterprise Limited and Max Healthcare Institute Limited are a few amongst the listed peers operating in the same service line.
Yatharth Hospital Noteworthy Highlights
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The eighth and 10th largest private hospital in the National Capital Region of Delhi (“Delhi NCR”), respectively, in terms of the number of beds in Fiscal 2023.
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The company’s total operational revenue increased from ₹2,286.74 million in fiscal 2021 to ₹4,009.37 million in fiscal 2022 which further increased to ₹5,202.93 million in fiscal 2023 at a CAGR of 50.84%.
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Yatharth Hospitals’ non-COVID-19 revenue increased from ₹1,528.23 million in fiscal 2021 to ₹ 3,119.84 million in fiscal 2022 which further increased to ₹5,202.93 million in fiscal 2023 at a CAGR of 84.51%.
Yatharth Hospital Financials
| Particulars | As of March 31 2023 (Rs. millions) | As of March 31 2022 (Rs. millions) |
|---|---|---|
| Revenue From Operation | 5,202.93 | 4,009.37 |
| EBITDA | 1,337.65 | 1,108.11 |
| EBITDA Margin | 25.71% | 27.64% |
| Profit After Tax | 657.68 | 441.62 |
| ROE | 35.95% | 37.78% |
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Strengths
3The company is among the leading super-specialty hospital in Delhi NCR with a diverse specialty and payer mix. They are among the top ten private healthcare providers.
Yatharth hospitals are equipped with machines and devices with sophisticated technology. It has equipped all its hospitals with advanced medical technology and equipment and diagnostic instruments intending to provide its patients with accurate diagnoses and effective treatments.
The company has demonstrated stable operating, financial performance and growth over the past three fiscals. It has recorded an operating margin of 25.71% in Fiscal 2023.
Risks
3The offer price, market capitalisation to revenue multiple, price to earnings ratio and EBITDA based on the offer price of the company, may not be indicative of the market price of the company on listing or thereafter.
Yatharth Hospitals operate in an industry with high fixed costs, and its fixed costs have had and will continue to have, an adverse impact on the company’s results of operations and profitability.
The company relies on financing from banks or financial institutions to carry on its business operations, and the inability to obtain additional financing on terms favourable to Yatharth Hospitals or at all can have an adverse impact on its financial condition.
Yatharth Hospital Peer Comparison
| Key Financials | EBITDA (in million Rs) | 2 Year CAGR (2019-2021) | Profit After Tax (PAT) | Dividend Yield |
|---|---|---|---|---|
| AHEL | 6087 | -25% | 1368 | - |
| FHL | 4707 | -18% | -562 | - |
| HGEL | 1430 | 16% | -2211 | - |
| MHIL | 6360 | 74% | -950 | - |
| NHL | 1971 | -20% | -207 | - |
| KIMS | 3803 | 50% | 2055 | - |
| BSL | 358 | -3% | -188 | - |
| GHL | 2224 | 8% | 132 | - |
| JHL | -25 | NA | 1224 | - |
| KHL | 800 | 35% | 233 | - |
| YHTC | 675 | 85% | 196 | - |
