Shares of Yatharth Hospitals & Trauma Care Services Ltd. fell as much as 4% on Monday, January 27, after the company reported December quarter results, where its net profit remained flat, while margins saw contraction on a year-on-year basis.
Net profit for the quarter increased by only 3.4% from last year to ₹30.4 crore. However, revenue for the iquarter increased by 31.4% to ₹219 crore from ₹166.7 crore during the same quarter last year.
Yatharth Hospitals’ Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) went up by 18% to ₹54.7 crore, while margin narrowed by 300 basis points to 25% from 28% last year.
The company also shared data on how it has utilised the proceeds from the Qualified Institutional Placement (QIP) that it concluded last month.
It is yet to repay the ₹956.8 crore it planned on using to repay outstanding debt as it had earmarked as part of the fund utilisation plan. The sum currently is classified under unutilised amount.
Yatharth planned to use ₹2,173 crore to fund in part, the acquisition of two hospitals in Delhi and Faridabad, Haryana, of which, it has utilised ₹1,139 crore from the same.
This is the only substantial expenditure made from the QIP proceeds so far. ₹5,016 crore out of the ₹6,250 crore raised by the company remain unutilised.
Yatharth completed its QIP only in late-December and sold shares to eligible institutions at ₹595 apiece. The stock is down nearly 29% from those levels.
Shares of Yatharth Hospitals are currently trading 4.4% lower at ₹423.45. Barring January 1, January 22 and January 23, the stock has declined in every single trading session for the month of January. CNBCTV18