Narayana Hrudayalaya Reports Strong Q2 FY22 Results and Acquires UK-based Practice Plus Group Hospitals

Narayana Hrudayalaya , a leading healthcare provider in India, has reported robust financial results for the second quarter of fiscal year 2022 and announced a significant international expansion through the acquisition of UK-based Practice Plus Group Hospitals Limited.

Q2 FY22 Financial Highlights

Narayana Hrudayalaya demonstrated strong financial performance in Q2 FY22:

Metric	Q2 FY22	YoY Growth
Consolidated Operating Revenue	INR 9,403.00 million	56.50%
Consolidated EBITDA	INR 1,810.00 million	-
EBITDA Margin	19.30%	-
Profit After Tax (PAT)	INR 994.00 million	-
PAT Margin	10.60%	-

The company's financial health improved significantly, with the net debt to equity ratio decreasing to 0.19. Total borrowings less cash and investments stood at INR 2,412.00 million.

Operational Performance

Narayana Hrudayalaya's operational metrics showed strong recovery:

Healthcare Facilities: 47 facilities across India, including 20 owned/operated hospitals
Bed Capacity: 5,531 beds in owned/operated hospitals; total operational capacity of 6,178 beds
Workforce: 16,993 full-time employees, including 3,558 doctors
Patient Footfall: 526,300 outpatient visits and 49,500 inpatient discharges
Revenue per Bed: Average revenue per operational bed increased to INR 12.20 million from INR 9.90 million in the previous year

The company also reported vaccine revenues of INR 230.00 million during the quarter.

Acquisition of Practice Plus Group Hospitals Limited

In a strategic move to expand its international presence, Narayana Hrudayalaya announced the acquisition of Practice Plus Group Hospitals Limited, a prominent healthcare provider in the United Kingdom.

Key Acquisition Details:

Acquirer: Health City Cayman Islands Limited (wholly-owned subsidiary) through Narayana Hrudayalaya UK Ltd.
Acquisition Cost: GBP 188.78 million for 100% stake
Target Company Profile:
- 5th largest private healthcare network in the UK
- 4th largest NHS healthcare service provider
- Revenue: GBP 229.00 million in FY24, estimated GBP 250.00 million in FY25
- Facilities: 7 Hospitals, 3 Surgical Centers, 2 Urgent Treatment Centers, 3 Musculoskeletal/Diagnostic Centers, 1 Ophthalmology Center
- Capacity: 330 in-patient and out-patient beds
- Workforce: ~2,500 Full-Time Equivalents, including ~1,300 doctors and clinical staff

Strategic Rationale:

International Expansion: Builds upon Narayana Health's successful expansion in the Caribbean through Health City Cayman Islands
Market Entry: Access to the mature UK healthcare market, which is witnessing a shift towards day care procedures and increased private pay penetration
Operational Synergy: Favorable doctor engagement model and asset-light operations align with Narayana Hrudayalaya's existing approach
Growth Platform: Provides an excellent platform for future growth in the UK market

The acquisition is expected to close within six business days of the agreement date, subject to customary closing conditions.

This strategic move not only strengthens Narayana Hrudayalaya's global presence but also positions the company to capitalize on the growing opportunities in the UK healthcare market. The combination of strong domestic performance and international expansion underscores Narayana Hrudayalaya's commitment to growth and delivering quality healthcare services across borders.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.09%	+1.30%	+1.14%	-0.18%	+38.07%	+433.84%

Narayana Hrudayalaya , a leading Indian healthcare provider, has announced a significant international expansion through the acquisition of Practice Plus Group Hospitals Limited, a prominent UK-based healthcare company. The deal, valued at £188.78 million, marks a strategic move to strengthen Narayana Health's presence in the global healthcare market.

Key Details of the Acquisition

Aspect	Details
Acquirer	Narayana Hrudayalaya UK Ltd. (subsidiary of Health City Cayman Islands Limited)
Target Company	Practice Plus Group Hospitals Limited
Acquisition Cost	£188.78 million
Payment Method	Cash consideration
Equity Acquired	100% (60,001 shares at £3,146.29 per share)
Expected Closing	Within 6 business days

Practice Plus Group: A Snapshot

Practice Plus Group operates a diverse portfolio of healthcare facilities across the United Kingdom:

Facility Type	Count
Hospitals	7
Surgical Centers	3
Urgent Treatment Centers	2
Musculoskeletal/Diagnostic Centers	3
Ophthalmology Center	1
Total Bed Capacity	330

The company employs approximately 2,500 full-time equivalents, including 1,300 doctors and clinical staff, showcasing its substantial presence in the UK healthcare sector.

Financial Performance

Practice Plus Group has demonstrated strong financial performance in recent years:

Financial Year	Turnover (in £ million)
FY2023	211.00
FY2024	229.00
FY2025 (Estimated)	250.00

Strategic Implications

This acquisition builds upon Narayana Health's international presence, following its expansion in the Caribbean through Health City Cayman Islands. The move into the UK market represents a significant step in the company's global growth strategy.

Regulatory Aspects

The acquisition does not require any governmental or regulatory approvals, which may facilitate a smoother transition and integration process.

Narayana Health's expansion into the UK healthcare market through this acquisition demonstrates the company's commitment to global growth and diversification. As the healthcare landscape continues to evolve, this move may position Narayana Health to leverage new opportunities and enhance its international presence.