Narayana Health records highest-ever ARPOB in Q4FY24 at ₹1.49 crore

Narayana Health Hospital will be able to maintain a steady occupancy rate of 60-65% and an average revenue per patient of around ₹1.3 lakh, according to Sandhya J, Group CFO of the private hospital chain.

Narayana Health saw its highest-ever average revenue per bed in the January-March quarter at ₹1.49 crore. The average revenue per patient (ARPP) also improved 8% over the previous year to ₹1.31 lakh.

“If at all the benefit is flowing through, it’s flowing through more higher value procedures, which we are able to do as well as better throughput that we are able to pass through the same capacity. Therefore, while we are not guiding, but we are looking at similar to Q4 kind of levels,” Sandhya J said.

Narayana Health reported a revenue increase of nearly 5% for the fourth quarter to ₹1,279 crore. Profit was ₹191 crore, with a margin of 23%.

Sharing her view on the ongoing debate over standardisation of rates for medical procedures, Sandhya J highlighted the challenges of offering a single price when the investment for each varies.

She also noted the high costs involved in providing quality healthcare, including expensive machinery and significant manpower.

Sandhya hopes that any future guidelines will be reasonable, allowing the private sector to continue contributing to the healthcare industry effectively.

Sandhya expressed optimism about the hospital’s operations in the Cayman Islands, despite some short-term challenges with new capacity.

Narayana Health has planned investments totaling ₹1,700 crore for FY25. This includes some ongoing projects from the previous year and new investments in their existing hospitals. The majority of the investment will go towards building new facilities, particularly in Bengaluru and Kolkata.

Narayana Health is also looking for opportunities in international markets, especially in the Caribbean. Although no specific investments have been planned for these markets yet, the hospital remains open to exploring potential opportunities as they arise.

Bengaluru-based Narayana Health, established in the year 2000 by Devi Shetty, currently has a market capitalisation of ₹25,801.57 crore. CNBCTV18