Shares of Krishna Institute of Medical Sciences (KIMS) rose by nearly 6% on 11 November after the release of its strong Q2FY25 financial results. At 12.50 PM, KIMS' share price was trading 3% higher at ₹587. The stock has gained more than 50% year-to-date, significantly outperforming the Nifty 50 index, which has risen by 12% during the same period.
Strong financial performance
KIMS reported a consolidated net profit of ₹107.4 crore for Q2FY25, reflecting a 24% increase compared to the previous quarter and a 16.7% rise year-on-year. The company’s revenue from operations also saw a notable rise, up 13% from the previous quarter and 19% from the same period last year, totalling ₹777.3 crore.
The company’s strong financial performance was further reflected in its consolidated EBITDA, which grew by 21.2% sequentially and by 23.8% year-on-year, reaching ₹223 crore. Additionally, the EBITDA margin improved to 28.5% in Q2FY25, compared to 27.5% in Q2FY24 and 26.6% in the previous quarter.
Expanding presence and operations
A key factor behind KIMS' strong Q2 results has been its expanding healthcare infrastructure. The company continues to grow its footprint, with new facilities and units being launched in various regions.
"The second quarter has been an extremely busy and productive one on multiple fronts for us. Our unit in Nashik went live this quarter, and we are pleased to announce the launch of our first hospital in Kerala at Kannur," said B Bhaskar Rao, Chairman and Managing Director (CMD) of KIMS Hospitals.
KIMS currently operates 16 hospitals, with a total of over 5,000 beds, across Telangana, Andhra Pradesh, Maharashtra, and its latest addition in Kerala. The company offers a wide range of multi-disciplinary healthcare services, focusing on tertiary and quaternary care in specialities such as cardiac sciences, oncology, neurosciences, and organ transplantation.
A positive outlook
Looking ahead, KIMS is confident about its continued growth. The company remains focused on expanding its reach and ensuring its facilities are running at full capacity to meet the rising demand for healthcare services. "All our units are working to their optimal capacity to meet the rush of patients across all geographies," added Rao, highlighting the company’s commitment to providing affordable and accessible healthcare to everyone.
KIMS' solid financial performance in Q2FY25 demonstrates its ability to grow despite the challenges of a competitive healthcare market. For those looking to invest in stocks with strong growth potential, KIMS offers an attractive proposition, particularly given its consistent track record and strategic expansion plans. As the company continues to grow its presence and enhance its healthcare offerings, its positive results suggest that KIMS will remain a significant player in the Indian healthcare sector.
KIMS' ability to execute its expansion plans successfully positions it for future growth, and investors seeking long-term opportunities in the healthcare industry may want to consider this stock.
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