Aster DM Healthcare reports 20% revenue growth in Q1 of FY25

New Delhi: Aster DM Healthcare has announced the financial performance for the first quarter of FY25, achieving a 20% year-over-year increase in revenue, reaching INR 1,002 crore, which is the highest-ever quarterly revenue for Aster India.

This substantial revenue growth reflects a strong operational performance, bolstered by an increase in bed capacity and growth in Average Revenue Per Occupied Bed (ARPOB).

Operating EBITDA also saw a significant increase, up 39% from the previous year to INR 177 crore. This growth underscores the company’s effective operational strategies and improved margins. The operating EBITDA margin improved to 17.7%, up from 15.3% in the same quarter last year. Additionally, Profit Before Tax (PBT) grew by 125% year-over-year, reaching INR 123 crore compared to INR 54 crore in Q1 FY24. Net Profit (post Non-Controlling Interest) increased by 80% to INR 74 crore from INR 41 crore in the previous year.

Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, stated, “With the successful segregation of our GCC business, we are now a pure-play India entity, as we embark on a new journey FY25 onwards. In Q1 FY25, our India business achieved 20% YoY growth delivering the highest-ever revenue performance of INR 1,002 crores, aided by an increase in bed capacity and growth in ARPOB. The Operating EBITDA grew by 39% YoY to INR 177 crores and net profits (post NCI) grew by 80% YoY to INR 74 crores in Q1 FY25.”

In terms of operational performance, the Core Hospital & Clinics segment achieved an Operating EBITDA margin of approximately 21%. Matured hospitals, those operational for over six years, reported an Operating EBITDA margin of 23.2%. The Whitefield Hospital in Bangalore reached a 65% occupancy rate, with ARPOB surpassing INR 70,000. The company also saw a positive shift in its payor mix, with insurance contributing 30% to the total, although this was partially offset by a decrease in scheme business.

Revenue from the Karnataka and Maharashtra clusters grew by 38% year-over-year, with Operating EBITDA increasing by 55% over the same period. Aster Labs also saw a 15% increase in revenue year-over-year, continuing to deliver a positive operating EBITDA margin.

Dr. Moopen also highlighted, “Aster DM Healthcare continues to get prestigious recognitions at the national level. Recently, The Economic Times awarded us as the “Best Healthcare Brand of the Year-2024”. Also, Aster CMI Hospital became the first hospital in South India to receive NABH Digital Platinum Accreditation. As we progress, we are on track to reach 6,500+ beds by FY27, further strengthening our position as a leader in the healthcare sector.”