Narayana Health expects domestic business to grow at 13-14%

Narayana Health’s international business is expected to stay muted this year, according to Group CFO Sandhya J., due to visa restrictions on Bangladesh, a key market for India’s medical tourism.

India imposed these restrictions after the recent political developments in Bangladesh, stating they will remain until stability is restored.

With Bangladeshi and Middle Eastern patients making up 70-80% of India’s medical tourists, Sandhya noted that the travel limitations have significantly impacted patient inflow.

She added that typically lower travel volumes during the October-December quarter could also weigh on numbers

The international segment contributed about 7% to Narayana’s overall business this quarter, down from 8.7% in the same period last year.

To counter this, the company focused on growing its domestic business, which reported a 13.5% growth.

Sandhya expects the domestic business to maintain its growth rate of around 13-14%.

The company’s flagship hospitals reported an occupancy rate of 60-65%, while non-flagship facilities saw a slightly higher rate of around 70%.

In July-September 2024 (Q2FY25), Narayana Health achieved revenue growth of over 7% year-on-year, at ₹1,400 crore.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by nearly 2% to ₹332 crore, though the EBITDA margin slipped from 25% to 23.71%. Profit after tax (PAT) fell 16% to ₹199 crore.

The company’s market capitalisation stands at approximately ₹24,891.15 crore, with shares gaining nearly 18% over the past year. CNBCTV18