#PAT #GROWTH 5 Year CAGR 67.0%

In FY24, PAT stood at ₹790 cr. During the period, depreciation and finance cost witnessed a rise on a YoY basis. Finance cost rose on account of rising interest expenses towards term loans from banks. In Q1 FY25, PAT grew by ~9% YoY to ₹201 cr. During the period, finance cost increased significantly by ~62% YoY. Effective tax rate for FY25 is expected to be in the similar range of ~25%-26%; as the India business would have an ETR of ~26% going ahead due to no further credits being realized while the Cayman’s ETR would stay at ~0%. Further, depending on the mix between India and Cayman, the tax rate is expected to get moderated. Going forward, the company is focusing on ramping up their new units and would continue to derive growth prospects in their overseas business.

#EBITDA #MARGIN

In FY24, EBITDA margin was ~23%, an expansion of 162 bps YoY. The improvement was backed by better realizations, rise in the company’s ARPOB and enhancement of cost efficiencies across units, driven by rising patient volumes. Their ability to diversify case mix beyond Cardiac Sciences, especially in Oncology further helped in ramping up their mature hospitals. In Q1 FY25, EBITDA margin expanded by 72 bps YoY to ~23%. The improvement was primarily attributable towards improved realizations and enhancement of cost efficiencies across units. EBITDA margin for the new hospitals (Gurugram, Dharamshila and SRCC Hospital in Mumbai) was ~7% during the same period. Although Mumbai posted a single-digit loss which is expected to be stabilized to EBITDA breakeven in Q2 FY25. Improvement in throughput would further drive profitability, going ahead.

#PAT #MARGIN

In FY24, PAT margin was 16%, an expansion of 233 bps YoY. In Q1 FY25, PAT margin expanded by 10 bps YoY to ~15%.

#Companies #Potential

India’s healthcare industry, which comprises hospitals, medical devices & equipment, health insurance, clinical trials, telemedicine, and medical tourism, has been growing at a CAGR of ~22% since 2016, reaching over $370 billion in 2022 and is expected to reach ~$670 billion by 2026. This increase in market size is due to growing demand for specialized and higher quality healthcare services. Further, over the last 1-2 years, the healthcare sector investments mainly centered around hospitals and health tech start-ups. • The interim budget FY25, with an allocation of ₹90,171 crore towards health, aims to improve access to healthcare services and infrastructure in India. The government's announcement to establish more medical colleges via utilizing existing hospital infrastructure is expected to address manpower shortages while also increasing access to healthcare education. insurance market will drive demand for healthcare services. and provides a huge opportunity in the Healthcare market. • Health insurance propels the demand for healthcare services as insurance policies partly cover health expenses, eventually reducing the healthcare cost burden and encouraging an individual to undergo treatment. Therefore, a likely increase in the health • India offers significant opportunity for the growth of medical tourism. The market is expected to rise at a CAGR of 65%-70% between FY21-25. India is a preferred destination for Medical Value Travel (MVT) which attracts patients from all over the globe • The expanding and ageing population, rising cost of treatment, prevalence of non-communicable diseases and increasing penetration of healthcare insurance are some of the key growth drivers of the healthcare market. • Changing demographic trends, rising per capita income, rising awareness for healthy lifestyle, under-penetrated healthcare space in India, higher share of non-communicable diseases, better healthcare technology coupled with cost competitiveness are some of CASE STUDY the factors which would be aiding the growth of the healthcare industry in India.

#Companies #Outlook

Expansions- The company has been simultaneously pursuing organic and inorganic growth opportunities across both India and overseas units, thereby driving synergies from the existing operations. and is constantly exploring greenfielda and brownfield capex opportunities across both units, which would further give a better return on investments and will also aid in improving its efficiencies. The primary objective is to increase high end complex procedures across network which would improve overall ARPOB. • India • Cayman • New Business - This is expected to witness growth on the back of rising throughputs and total numbers served under the same infrastructure. The focus would be to improve the payor mix, increase efficiency & improve capacity utilization of beds. Unit - They inaugurated a new hospital (day care focused) with ~50 beds in July 2024 with patient inflows being expected to kick in before the end of Q2 FY25. Being a new building, it would have a high fixed cost, leading to dilution of margins and operational loss in the initial period. Further, they are optimistic of this Caribbean business to continue performing well with synergies between these hospitals, led by strategic initiatives and investments. hospitals - Dharamshila, Gurugram and Mumbai are likely to witness improvements in terms of margins, going ahead. • They launched Narayana Health Insurance in Mysore in late-June and expects this segment to be a narrow network operation. • The gross debt in FY25 for expansion is expected to be ~₹2,400 crore which is an addition of ₹1,000 crore YoY, while the net debt would be ₹1,000 crore.

Narayana Hrudayalaya NH 1130-1230
Expected level 1450
Support 1072

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1465 to 1700+ 💥Long term level hit

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Soon will share Diwali to Diwali pick

PGEL 500-620
Expected level 840
Support 418

NCC 245-295
Expected level 400
Support 190

EMS Limited 690-795
Expected level 960
Support620

Praj Industries 600-720
Expected level 930
Support500

Olectra Greentech Limited 1400-1640
Expected level 2150
Support1250

PNC Infratech company details

PNC Infratech is a leading infrastructure construction, development, and management company in India with vast experience and a demonstrated expertise in major infrastructure projects, including expressways, highways, rural drinking water and irrigation, bridges, flyovers, airport runways, and industrial area development, amongst others. The company provides end-to-end infrastructure implementation solutions that include engineering, procurement and construction (EPC) services on a fixed-sum turnkey basis as well as on an item rate basis. It also executes and implements projects on a "DesignBuild-Finance-Operate-Transfer" (DBFOT), Operate-Maintain-Transfer (OMT) and Hybrid Annuity Mode (HAM). The company has executed 88 major infrastructure projects spread across 13 states, of which 64 are road EPC projects, 21 airport runway projects across India, railway track construction, power transmission and industrial area redevelopment project one each. It has a track record of timely execution of projects and has also received bonus for some of its projects for early completion. PNC is operating 5 BOT projects comprising of both toll & annuity assets, and 23 HAM projects (comprising 10 operational projects, 9 projects under construction, financial closure achieved for 3 projects and concession agreement executed for 1 project. As on 30th June 2024, the company has 30 subsidiaries and 2 Joint ventures.

#SALES #GROWTH 5 Year CAGR 18.0%

In FY24, the sales grew by 9% YoY to ₹8,650 cr (v/s ₹7,956 cr in FY23). FY23 sales include ₹37.02 cr early completion bonus (early completion of Purvanchal Expressway in the state of Uttar Pradesh). The YoY sales growth was mainly driven by strong execution of water projects (Jal Jeevan Mission project). In Q1 FY25, sales grew by 4% YoY to ₹2,168 cr (v/s ₹2,092 cr in Q1 FY24). This includes ₹56.4 cr received as early bonus for early completion of one of the EPC projects in Maharashtra. It also includes ₹515.8 cr worth of arbitration claim received for two SPVs namely PNC Raebareli Highways Pvt Ltd and PNC Kanpur Highways Ltd in regard to the “Vivad se Vishwas II” scheme of Government of India. Excluding the bonus and claim, the sales during the quarter stood at ₹1,595 cr, and de-grew by 24% YoY.

#EBITDA #GROWTH 5 Year CAGR 14.8%

In FY24, the EBITDA grew by 25% YoY to ₹2,005 cr. The EBITDA growth was mainly led by decline in other expenses. Segment wise, all business segment reported doubledigit EBIT growth YoY. In Q1 FY25, the EBITDA increased by 122% YoY to ₹969 cr. It included the bonus for early completion and arbitration claim. Excluding bonus and claim, EBITDA de-grew by 9% YoY to ₹397cr.

#PAT #GROWTH 5 Year CAGR 21.0%

In FY24, the PAT increased by 38% YoY to ₹909 cr (v/s ₹658 cr in FY23). The finance cost increased by 41% YoY to ₹660 cr because of increase in borrowings. The timely execution of projects by company plays a crucial role in securing profitability. In Q1 FY25, the PAT grew by 218% YoY to ₹575 cr. The finance cost increased during the quarter. Excluding bonus and claim, the PAT de-grew by ~25% YoY and stood at ~₹136 cr.

#EBITDA #MARGIN

In FY24, the EBITDA margin expanded by 306 bps YoY to 23.2%. Segment wise, the road business EBIT margin expanded by 454 bps YoY to 15.3%, however the water business margin contracted by 161 bps YoY to 15.6%. Toll/Annuity business EBIT margin expanded to 68.5% from 46.5% in FY23. The company’s cost of material consumed/contract paid constitutes ~84% of the total expenses followed by other expenses ~10% and employee benefit expenses ~6%. In Q1 FY25, the EBITDA margin stood at 44.7% (v/s 20.9% in Q1 FY24). Excluding bonus and claim, EBITDA margin expanded by 400 bps YoY to 24.9%. PNC Infratech avoids projects below a minimum profitability threshold, which enables it to sustain its operating margins.

#PAT #MARGIN

In FY24, the PAT margin expanded by 224 bps YoY to 10.5%. In Q1 FY25, the PAT margin stood at 26.5% (v/s 8.6% in Q1 FY24). Excluding bonus and claim, the PAT margin contracted by 10 bps YoY and stood at ~8.5%.