HealthCare Global Expects Over 15% Revenue Growth Following Latest Acquisition

Bengaluru-based HealthCare Global Enterprises has strengthened its dominant position in the cancer treatment market by acquiring a 51% stake in Mahatma Gandhi Cancer Hospital in Vizag.

In an interview with CNBC-TV18 BS, Ajai Kumar, executive chairman of HealthCare Global Enterprises, said he is confident that revenue will grow by more than 15% this year.

HealthCare Global has purchased 51% of the shares for an amount of approximately Rs 208 and plans to acquire another 34% for an amount of Rs 155 soon.

“We are doing this (takeover) in two tranches. Initially, ₹200 crore will come from internal accruals and some debt. We have 18 months to secure the remaining funds to achieve 85% of the shares with the partner. We may even consider primary emissions at this point, combining both methods to achieve our 85% target,” he said.

Kumar expects operating margin to improve to over 20% in the next two to three years and return on capital employed (RoCE) to increase. in the same period.

The company intends to make more such acquisitions and is also developing centres in Bengaluru as part of its strategy to expand its presence in key cities.

Read Here | Expanding Operations in Kolkata and Mumbai to Drive Growth This Year: HealthCare Global

The market share in Bengaluru is around 34% and is expected to increase to 40% with the opening of two new centres.

The average revenue per occupied bed (ARPOB) in Bengaluru is expected to stabilize at around ₹70,000 with continuous expansion.

HealthCare Global has a market capitalization of ₹5,314.98 crore. Its shares have gained 20% over the past year.

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