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News Topical, Digital Desk : Healthcare Global Enterprises has set a target of achieving an operating margin of at least 20 per cent by FY 2025-26. The company believes that its outpatient-focused cancer treatment model and strong revenue growth from urban centres can make this target possible. However, the company's margin fell to 17.8 per cent in the March quarter, from 18.4 per cent in the same quarter last year. Apart from this, profits declined by 65.4 per cent to Rs 7.36 crore.
HCG Executive Chairman BS Ajaykumar told CNBC-TV18 that we believe that our new and emerging centers will perform better soon. This year we are expecting to achieve margins of around 20 percent. In urban centers like Ahmedabad and Bengaluru, the average revenue per bed has reached around Rs 1 lakh. Mumbai centers, especially South Mumbai, have recorded a growth of more than 40 percent. At the same time, the Borivali center has made profits, where EBITDA margins reached above 20 percent. HCG is now focusing on daycare and outpatient treatment instead of traditional hospitalization. 65-70% of the company's total sales now come from outpatient services. “Today, most chemotherapy is completed in day care. Radiation therapy is also completely day therapy. Only patients with surgery and complications stay in the hospital for longer periods,” Ajaykumar said. The company's average revenue per bed is currently around Rs 45,000 and is seeing 3.5-4% annual growth. HCG plans to add around 900 new beds this year, but major revenue growth is expected to come from outpatient and daycare services. Outpatient infusion centres are being set up in Mumbai under the hub-and-spoke model. Though the entry of new players like Adani Healthcare in the sector has increased competition, Ajaykumar says, “HCG's strength is its expertise in oncology. Patients get the best results in a dedicated cancer centre.
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