"Yatharth Hospitals Plans to Double Bed Count in Three Years, Eyes Further Acquisitions"

Yatharth Hospitals, following its recent ₹116 crore acquisition of Faridabad-based Asian Fidelis, is poised to intensify its presence in the North Indian markets of Uttar Pradesh, Madhya Pradesh, and Haryana. The hospital chain is targeting a significant expansion, aiming to double its bed count to 2,800 over the next three years through a combination of organic growth and strategic acquisitions.

Yatharth Tyagi, Director of Yatharth Group of Hospitals, outlined the company's growth strategy, indicating a focus on inorganic expansion through targeted acquisitions, aiming for at least one acquisition per year, ideally around 200 beds each. Despite its aggressive growth plans, the healthcare provider remains debt-free post-listing on the stock exchanges. In addition to acquisitions, the company plans to assume management of facilities under the Operation and Maintenance (O&M) model as part of its inorganic expansion strategy.

Having recently raised close to ₹600 crore through its IPO, Yatharth Hospitals is actively pursuing opportunities to expand its footprint in the NCR markets, alongside states like Haryana and Madhya Pradesh. The company anticipates announcing at least one acquisition per year over the next two to three years as it works towards doubling its bed count.

Organic expansion plans include adding 450 beds across two existing facilities over the next three years. Presently, Yatharth Hospitals operates facilities in Uttar Pradesh (including Noida, Greater Noida, and Noida Extension), Madhya Pradesh (Orchha), and Haryana (Faridabad).

The integration of Asian Fidelis with Yatharth Hospitals and the rebranding of the former are slated for completion by April. An additional ₹50 crore investment is earmarked for enhancing facilities, particularly in super-specialty surgeries and procedures.

Yatharth Hospitals reported robust financial performance in the nine months ending December, with operating revenue reaching ₹493 crore, a 31% increase year-on-year. Profit after tax stood at ₹76 crore, marking a 57% year-on-year growth, with the PAT margin expanding by 259 basis points to 15.5% in 9M FY24. Bed occupancy rates increased to 53%, up from 44% in 9M FY23, while the Average Revenue Per Occupied Bed (ARPOB) rose by 8% year-on-year to ₹28,316 in 9M FY24.

HBL