Rainbow Children’s Medicare posts Rs 62.91 crore profit in Q2

Pediatric multi-specialty and perinatal care hospital chain Rainbow Children’s Medicare Limited (RCML) posted second quarter profit at Rs 62.91 crore, 2.9 per cent in comparison to Rs 61.13 crore during the year ago period. It posted revenue from operations at Rs 332.68 crore, up 6.3 per cent as against Rs 313.05 crore during the second quarter of FY23. “The company recorded its highest ever revenue and EBITDA, despite a delayed onset of the monsoon and overall deficit in seasonal rainfall, showcasing robust progress in operational performance,” it said in a statement.

While the total income recorded during the quarter in review was at Rs 340.50 crore, Rainbow incurred total expenditure of Rs 255.25 crore during the quarter ended September 2023.

“The current quarter, Q2FY24, differs significantly from the same period last year due to the distinctive circumstances of Q2FY23. In Q2FY23, which marked the first year of post-Covid-19 normalcy, many children experienced acute pneumonia as they transitioned out of a protective environment after approximately two years. In that context, the current quarter has demonstrated a noteworthy level of resilience, which the company believes is likely to be more sustainable in the long term,” it said.

Rainbow Hospital also said that it has established a new branch in Hyderabad and it has garnered substantial interest and is progressing in accordance with expectations. In terms of clinical excellence, RCML announced that OMR Hospital in Chennai has achieved NABH accreditation within the first year of commencing its operations. “The coming five months of the current financial year are set to be a period of heightened activity for the company, as it is preparing to commission three new hospitals and an additional block at an existing hospital during this time,” it added.

RCML said that it has a strong balance sheet and cash & cash equivalent, fixed deposits and mutual fund investments aggregating to Rs 471.90 crore as of September 30, 2023, which will be deployed for the ongoing capex plan of the company. Based on the present cash flow and expected internal accrual in the coming years, we expect to complete all the planned capex with internal accruals and balance IPO funds. During the quarter, company spent Rs 55.50 crore for the capex.

“I’m delighted to announce that our company has showcased a strong performance this quarter. The revenues for Q2FY24 was Rs 332.68 crore, which is a growth of 6.3 per cent compared to Rs 313.05 crore in Q2FY23. The EBITDA for Q2FY24 was Rs 117.56 crore, which is a growth of 7.3 per cent compared to Rs 109.52 crore in Q2FY23 and the PAT for Q2FY24 was Rs 63.16 crore, which is a growth of 2.7 per cent compared to Rs 61.51 crore in Q2FY23. This quarter’s impressive performance is a testament to our combined efforts and adaptability. We’ve managed to adapt to normalcy while maintaining our commitment to delivering unparalleled value to our patients. We remain dedicated to the timely execution and initiation of our projects,” said Dr Ramesh Kancharla, Chairman & Managing Director, Rainbow Children’s Medicare Limited (RCML).

Rainbow network comprises 16 hospitals and 3 clinics in 6 cities, with a total bed capacity of 1,655 beds. The Financial Express