December 10, 2023

Healthcare Global

Splash Healthcare Global All Over

Recent acquisitions will further add momentum to regional business, says HealthCare Global

HealthCare Global Enterprises continues to make significant strides in expanding its reach and enhancing its services through strategic acquisitions and growth initiatives. The recent additions to the company’s network, coupled with its robust guidance for emerging centers, signal a promising future for HCG’s regional business.

Cancer specialty hospital chain HealthCare Global Enterprises (HCG) aims to achieve a revenue of at least Rs 475 crore from emerging centres with a mid-teens margin near term, as it has set a fresh guidance after successfully developing a network of regional facilities through organic as well as acquisition route.

BS Ajaikumar, Executive Chairman of HCG, in a recent conversation with CNBC-TV18, discussed the company’s strategic moves and recent acquisitions that are set to bolster its regional business. The healthcare provider has been making significant strides in expanding its reach and enhancing its services to cater to a broader patient base.

HCG has been actively expanding its presence with a keen focus on acquiring and establishing centres in key regions. The company’s acquisition spree includes a newly acquired center in Indore and a recently completed acquisition in Nagpur. These additions to the HCG network mark a crucial step towards strengthening the company’s foothold in these regions.

“We have acquired a major centre in Indore and this is one of the strategic centres in Indore and we have also completed our acquisition in Nagpur. Both of these will put us up in a strong territory. It will be our entry into Madhya Pradesh (MP) and it will complete our link completely in the eastern part coming up to MP and Andhra Pradesh (AP). This will add further momentum to our growth in this region,” he said.

Ajaikumar emphasised that these recent acquisitions are expected to bring a substantial boost to the regional business. The company is strategically aligning its efforts to ensure that these new centres contribute significantly to both revenue growth and overall momentum.

One of the highlights of HCG’s growth strategy is the guidance set by the company, which aims to achieve a revenue of Rs 475 crore from emerging centres with a mid-teens margin. This guidance reflects HCG’s confidence in the potential of these centers to drive substantial revenue while maintaining a healthy margin. Notably, emerging centres such as the one in Borivali, Mumbai, have showcased promising performance, indicating that the company’s approach is yielding positive results.

While discussing the financial performance of the company, Ajaikumar pointed out that the margin dynamics can vary across different quarters. It’s common for the first quarter (Q1) margin to be lower due to various factors.

“Usually, in quarter one, margin gets little bit lower than last quarter. But in this quarter, our margin went down a bit more because we invested quite a bit in talent in quarter one,” he said.

However, in the most recent quarter, the margin was impacted due to significant investments made by the company in talent acquisition. This strategic investment in human resources underscores HCG’s commitment to maintaining high-quality patient care and service excellence.

Despite the temporary margin dip in the current quarter, Ajaikumar expressed optimism that the margin is expected to recover and catch up in the coming quarters.

For more details, watch the accompanying video