KIMS has entered into an O&M agreement with Insignia Healthcare

Telangana is home to the Indian hospital chain known as the Krishna Institute of Medical Sciences (KIMS). Dr. Bhaskar Rao Bollineni established it in the city of Nellore in 2000. The KIMS Group currently operates twelve hospitals in the Andhra Pradesh, Telangana, and Maharashtra states.KIMS Hospitals currently operates more than 16 hospitals with more than 5000 beds spread across the five states of Telangana, Andhra Pradesh, Maharashtra, Kerala, and Karnataka.

KIMS and Westfort Hospital in Thrissur signed an O&M contract

Insignia Healthcare Private Limited and Krishna Institute of Medical Sciences Limited (KIMS) have signed a major operations and management agreement. As per the agreement, KIMS will oversee and run a brand-new, 150-bed super speciality hospital in Guntur, Andhra Pradesh, called “KIMS-SIKHARA.” The contract, which goes into effect on November 9, 2024, has a 15-year initial term with a 10-year extension option.

KIMS’s action plan

KIMS will be in charge of all hospital management and operations, guaranteeing effective healthcare service delivery through its staff of skilled medical specialists. The hospital has the infrastructure to increase its capacity from the 150 beds it currently has to 200 beds. The hospital’s net revenue, which is calculated by subtracting discounts and disallowances from the gross revenue, will be used to calculate KIMS’s 5% revenue fee.

In keeping with its asset-light expansion strategy, this partnership allows KIMS to expand its presence in Guntur under its well-known brand. KIMS will also have the option to purchase up to 100% of KIMS-SIKHARA’s equity, subject to future agreements, and will have the first right of refusal (ROFR) on any transfers of equity shares in KIMS-SIKHARA during the agreement period. This partnership is a calculated step for KIMS to increase its healthcare services in the Andhra Pradesh region and fortify its position thereby utilizing Insignia Healthcare’s infrastructure.

KIMS Q2 FY25 result

The company’s net income of Rs. 1,074 million, which increased from Rs. 920 million in the same quarter last year, shows that KIMS’s financial situation is still sound. Sales have increased to Rs. 7,773 million from Rs. 6,525 million in the second quarter of FY24. The second quarter’s revenue was Rs. 7,823 million, up from Rs. 6,554 million in the previous year. Compared to Q2 FY24’s Rs. 920 million, net income is Rs. 1,074 million. On the other hand, basic and diluted earnings per share (EPS) from ongoing operations increased from Rs. 2.3 to Rs. 2.68 in the previous year.

KIMS stock jumps by over 5% today

Today, the share price of KIMS stock was Rs. 603.45, the 52-week high and a more than 5% increase. The stock is currently trading at Rs. 590.00 per share.

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.