Aster Forecasts Untapped Potential in the Private Health Industry
Aster Forecasts Untapped its potential with greenfield and brownfield expansions over the next three years, and capitalized on the increasing healthcare demand driven by India's vast population.
by Damodharan N
Updated Jun 18, 2024
Table of Content
Aster DM Healthcare, a leading player in the healthcare sector, is poised for significant growth in India's private health industry. Following the successful segregation of its India and GCC businesses, Aster is focusing on expanding its footprint in the Indian market.
With a robust strategy that includes both greenfield and brownfield expansions over the next three years, Aster aims to capitalize on the increasing healthcare demand driven by India's vast population and rising healthcare expenditures.
|
Metric |
FY19 |
FY24 |
Growth/Change |
|
Revenue (INR Crores) |
1,314 |
3,699 |
5-year CAGR: 23% |
|
EBITDA Margin (%) |
11% |
16.4% |
5-year CAGR: 38% |
|
Return on Capital Employed (%) |
2% |
20% |
Improvement |
|
Patient Volumes |
1.8 million |
3.3 million |
Increase |
|
Average Revenue Per Occupied Bed (ARPOB) |
INR 26,100+ |
INR 40,100+ |
Improved realizations |
|
Capital Expenditures (INR Crores) |
266 |
- |
Significant capex incurred |
|
Facilities |
12 hospitals, 8 clinics |
19 hospitals, 13 clinics, 215 pharmacies, 232 labs |
Expanded facility footprint |
|
Occupancy Rates (%) |
63% |
68% |
Improvement |
The Aster DM Healthcare's performance across key metrics from FY19 to FY24, highlighting significant growth in revenue, EBITDA margin, patient volumes, ARPOB, and expansion of its facility footprint, alongside improved financial efficiency and operational metrics.
The above financial disclosures highlight a strong performance, with a notable increase in revenue and operational efficiencies across its core hospitals. Aster's strategic initiatives, supported by substantial proceeds from the GCC business sale, position it well for future growth.
As India's healthcare delivery market continues to expand rapidly, Aster DM Healthcare anticipates tapping into this burgeoning sector with innovative healthcare solutions and expanded service offerings, aiming to solidify its presence as a leader in the private health industry.
Read the full the investor presentation for June 2024 by Aster DM Healthcare using the following link: Investor Presentation June 2024
Aster DM Healthcare
Aster DM Healthcare Limited is a prominent healthcare service provider in India, known for its extensive network spanning primary, secondary, tertiary, and quaternary healthcare. With 19 hospitals housing a total of 4,867 beds, 13 clinics, 215 pharmacies operated under license by Alfaone Retail Pharmacies Private Limited, and 232 labs and patient experience centers across six states in India.
The company prides itself on a simple yet strong promise to its stakeholders: "We'll treat you well." Aster DM Healthcare has also earned global recognition for sustainability, with nine of its hospitals listed in Newsweek magazine's World's Best Hospitals for 2024.
State of Public Health in India
India's public health faces significant challenges, reflecting varying disease burdens across its states and underscoring the need for unified national health priorities. A critical issue is the inadequate and inconsistent data, essential for effective health policies and programs.
Currently, only a small percentage of deaths in India receive medical certification, complicating accurate understanding of mortality patterns. This responsibility of health as a state subject has come with a lot of asterisk in the financial aspect of implementing the scheme and also have to build and maintain robust health data mechanisms in primary, secondary, tertiary, and quaternary healthcare.
The government acknowledges this and has actively built the public system. The Ayushman Bharat Digital Mission (ABDM) aims to build the essential foundation needed to support India's integrated digital health infrastructure. It seeks to connect various stakeholders in the healthcare ecosystem through digital highways, thus bridging existing gaps and enhancing overall healthcare delivery and accessibility.
Read the full paper on the Lancelot about India’s Public health priorities.
Aster Forecasts Untapped Potential in the Private Health Industry - FAQs
1. What is Aster DM Healthcare?
Aster DM Healthcare is a leading healthcare service provider in India, known for its hospitals, clinics, pharmacies, and labs across several states.
2. Why is Aster focusing on India's private health industry?
Aster sees great potential due to increasing healthcare demand driven by India's large population and rising healthcare spending.
3. What are Aster's growth plans for the next three years?
Aster plans to expand through both new hospital projects (greenfield) and acquisitions (brownfield) in India.
4. How has Aster's financial performance improved from FY19 to FY24?
Aster has shown significant growth in revenue, EBITDA margin, patient volumes, average revenue per bed, and expanded its facility footprint.
5. What is India's Ayushman Bharat Digital Mission (ABDM)?
ABDM aims to create a digital health infrastructure in India to connect healthcare stakeholders and improve healthcare accessibility and delivery.