One of the leading healthcare groups in India engaged in providing multi-disciplinary integrated healthcare services, in focus following acquisition and expansion of new hospital in Kerala.
Price Action
With a market capitalization of Rs. 21,008 Crores, the shares of Krishna Institute of Medical sciences Limited were trading at Rs. 2,625 per equity share, down 1.16 percent from its previous day’s close price of Rs. 2,655.95.
What Happened
Krishna Institute of Medical sciences Limited’s subsidiary KIMS Swastha Private Limited has entered into definitive agreements with Sreechand Specialty Hospitals Private Limited, located in Kannur, Kerala, towards the lease of land and hospital building along with Operations and Management of the hospital for 25 years.
Sreechand Specialty Hospitals Private Limited currently operates with 189 beds, six operating theatres, and one cath lab and following the lease agreement it will be rebranded as KIMS Sreechand Specialty Hospital along with allied tranformation.
The current facility will be expanded to a 350-bed quaternary care unit, offering state-of-the-art facilities across all departments with a particular emphasis on advanced Transplants, Robotic Surgeries, and Comprehensive Cancer Care.
The management of the Super Specialty Hospital shall be under the exclusive supervision and control of KIMS, who shall be solely responsible for managing the Sreechand Super Specialty Hospital.
Management Message
Dr. Abhinay Bollineni, Director and CEO of KIMS Hospitals, expressed his enthusiasm about the development: “We are thrilled to introduce KIMS Hospitals’ high standard of care to Kerala. This enhancement at the Sree Chand facility marks the beginning of our broader expansion plans across the state, following the preferred Asset Light model.”
About the Company
The Krishna Institute of Medical Sciences (KIMS) is one of the leading healthcare groups in India engaged in providing multi-disciplinary integrated healthcare services, with a focus on tertiary and quaternary healthcare.
KIMS has a network of 12 hospitals and 3,975 beds with an Average Revenue Per Occupied Bed of Rs. 31,916 and average revenue per patient of Rs. 1,31,232. It presence is spread across Telangana, Andhra Pradesh, Karnataka and Maharashtra, it offers a comprehensive bouquet of healthcare services in more than 40 specialties and super specialties.
Financials & Ratios
Its Revenue from operations grew by 13.60 percent YoY from Rs. 606 Crores in Q1FY24 to Rs. 688 Crores in Q1FY25, accompanied by profits of Rs. 87 Crores to Rs. 95 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 17.6 percent and a return on capital employed (ROCE) of 16.9 percent. It has reported a debt-to-equity ratio of 0.74.
Written by: Bharath K.S
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