Global Health Ltd, which operates hospitals under the Medanta brand, reported mixed financial results for the third quarter. According to latest reports, the company experienced a 33.5% year-on-year decline in net profit to ₹950 million for Q3, compared with ₹1,430 million in the same period last year. Despite the profit decline, the company demonstrated strong revenue growth with revenue rising 19.1% year-on-year to ₹11,428 million from ₹9,640 million in the corresponding quarter of the previous year. The revenue growth was driven by significant increases in patient volumes and improved service realization. For the nine-month period, total income grew 17.6% YoY to ₹33,131 million, showing consistent top-line expansion despite quarterly challenges.
The newly commissioned Medanta Noida hospital emerged as a key factor in the quarter's challenging performance. While the facility contributed ₹343 million in revenue for the quarter, it incurred an EBITDA loss of ₹320 million due to initial operating expenses, depreciation, and finance costs. This startup impact led to a 1.7% YoY decline in consolidated EBITDA to ₹2,494 million. However, excluding the Noida facility, the core business demonstrated strong operational performance with EBITDA growing 10.9% YoY to ₹2,814 million, with margins at a robust 25.4%. The company's adjusted PAT, excluding the Noida impact and exceptional items, stood at ₹1,224 million, providing a clearer picture of underlying business performance.
The company showcased robust operational metrics with significant improvements in patient volumes and service realization. In-patient volumes grew 14.3% YoY while out-patient volumes increased 19.5% YoY, demonstrating strong demand for healthcare services. Average Revenue Per Occupied Bed (ARPOB) saw a healthy increase of 9.9% YoY, indicating improved service realization and pricing power. These operational improvements underpinned the strong top-line expansion despite margin pressures from the new facility.
The company's profitability was further impacted by non-recurring exceptional items related to regulatory changes. A non-recurring exceptional item of ₹366 million stemmed from the statutory impact of new Labour Codes, significantly affecting the quarter's bottom line. The company faced EBITDA margin compression to 21.8% in the quarter, compared with 25.2% in the corresponding period last year, indicating operational efficiency challenges despite revenue growth. For the nine-month period, EBITDA (ex-Noida) grew 8.0% YoY, showing better long-term performance trends.
Despite current quarter challenges, Medanta unveiled ambitious expansion plans backed by significant capital investment. The company announced new hospitals in Delhi, Mumbai, and Guwahati, with plans to invest over ₹39,013 million in future Capex. This expansion strategy reflects the company's confidence in long-term growth prospects and market demand for healthcare services. The investment in new facilities is expected to support the company's growth trajectory and strengthen its position in key metropolitan markets.
Despite the mixed quarterly results, Medanta shares showed positive momentum in the market, according to latest reports. Shares of Global Health Ltd ended at ₹1,127.00, up by ₹13.00, or 1.17% on the BSE, indicating investor confidence in the company's long-term prospects despite the current quarter's margin challenges. The market response reflects investor optimism about the company's strong revenue growth, operational improvements, and ambitious expansion plans, despite the impact from the new Noida facility and regulatory changes.
