Rainbow Children's Medicare (RAINBOW) Q1 24/25 earnings summary

Executive summary

• Achieved 15% year-over-year revenue growth in Q1 FY25, reaching ₹3,302 million, with EBITDA up 6.9% to ₹937 million and PAT down 4.2% to ₹397 million compared to Q1 FY24.

• Commissioned new hospitals in Hyderabad, Bangalore, and Chennai, adding 280 beds and bringing total capacity to over 1,935 beds (+17% YoY), with 310,990 outpatient consultations (+12% YoY) and 21,289 inpatient discharges (+10% YoY).

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024.

• Maintained a balanced payor mix: 51.8% cash and 48.2% insurance for inpatient income in Q1 FY25.

• Focused on operational excellence, technology investments, and expanding the hub-and-spoke model.

Financial highlights

• Revenue from operations grew 15% YoY to ₹3,302 million; total income up 16% YoY to ₹3,421 million.

• EBITDA margin at 28.4% in Q1 FY25, slightly down from 30.5% in Q1 FY24.

• PAT declined 4.2% YoY to ₹397 million, with profit before tax at ₹533.5 million.

• Outpatient and inpatient volumes grew 12% and 10% year-over-year, respectively; deliveries up 10%.

• Net cash position of INR 518 crores as of June 30, 2024.

Outlook and guidance

• Expansion plans target 2,625 beds by FY27, with new hospitals in Hyderabad, Bengaluru, Tamil Nadu, NCR, and Andhra Pradesh.

• Expecting late-teen percentage growth for FY25, with healthy operating and financial metrics.

• Margin improvement anticipated in FY26 as new hospitals ramp up and recent capacity additions break even.

• New hospitals in Rajahmundry and Hennur to commence operations in Q4 FY25.

• Board approved continued capital expenditure for new hospitals and equipment as per IPO objectives.