From 31% premium listing to 80% jump in net profit: This healthcare company announces Its first-ever quarterly results post listing

Jupiter Life Line Hospitals Limited, a multi-speciality tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area (MMR) and the western region of India, announced its June quarter results on Friday.

As per the latest update, revenue from operations exhibited a substantial year-over-year increase of 21%, surging from Rs 201 crore to Rs 243 crore. The company reported an operating profit of Rs 53 crore, surpassing Rs 49 crore in the same quarter last year. However, the company’s margins dipped from 25% to 22% during the same period.

Meanwhile, the company’s net profit witnessed a remarkable 80% increase, reaching Rs 54 crore, compared to the Rs 30 crore profit in the corresponding quarter of the previous year. In the last quarter of FY23, the company reported a net profit of Rs 16 crore.

As per the latest Investor presentation, the company operates three hospitals primarily concentrated in the western region of India, with a total bed capacity of 961 beds for the current quarter, compared to 900 beds in the same quarter of the previous year. The company’s occupancy rate increased from 52.1% to 57.2% during the same period, with an average length of stay of 3 days. In the June quarter, the average revenue per occupied bed was Rs 55,796, compared to Rs 55,470 in the corresponding period.

Furthermore, construction began in April of this year for a fourth location in Dombivli, Mumbai, with a total bed capacity of 500 beds.

The stock made its debut last month in the Indian market, and during the IPO, the company received an impressive response from all participants, with a subscription rate of 64.80 times. The public issue received overwhelming demand, with the retail category oversubscribed 8 times, the QIB category achieving a subscription rate of 181.89 times, and the NII category reaching a subscription rate of 36 times.

The price range for the IPO was set between Rs 695 and Rs 735, with a face value of Rs 10 per share and a lot size of 20 shares. The total size of the company’s IPO was Rs 869 crore. The final share issue price of the company was fixed at Rs 735 each.

It made its debut on September 18, 2023, at a premium of 31%, opening at Rs 960 per share on the BSE. As of writing this article, the stock is trading at Rs 1,130 per share, which is a 54% increase from its final issue price of Rs 735 per share. The company’s current market capitalisation stands at Rs 7,410 crore, with the stock’s 52-week high and low prices being Rs 1,164 and Rs 960, respectively.

The company emphasized in its DRHP that it intends to utilize the funds for debt repayment and general corporate purposes. As of FY23, the company carries a debt of Rs 469 crore on its balance sheet.

Once it repays this debt, it will become debt-free, resulting in significant cost savings. During FY23, the company incurred interest expenses of Rs 42.3 crore related to its debt. This move will enhance the company’s balance sheet and profitability in the coming years.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.