Global Health Limited has received a credit rating upgrade from CRISIL Ratings, with the agency revising the company's long-term rating to CRISIL AA/Stable from the previous CRISIL AA-/Positive. The upgrade applies to the company's total bank loan facilities valued at ₹1,500 crore.

Credit Rating Details

CRISIL Ratings has upgraded Global Health's long-term rating to AA/Stable from AA-/Positive for its ₹1,500 crore bank facilities. The short-term rating has been reaffirmed at A1+.

Banking Facility Breakdown

The rated facilities are distributed across four major banks, comprising both term loans and working capital facilities. The banking arrangement demonstrates the company's diversified funding approach across leading financial institutions.

Regulatory Compliance

The company informed the stock exchanges about the rating revision in compliance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Facility Features

The working capital facilities include specific sublimits designed to support the company's operational requirements. These sublimits comprise:

• ₹150.00 crore for capital expenditure letters of credit
• ₹20.00 crore for bank guarantees

These sublimits provide flexibility for the company's business operations.

CRISIL Ratings maintains continuous surveillance and review of all assigned ratings, with the agency reserving the right to withdraw or revise ratings based on new information or changing circumstances. The rating agency noted that companies must avail proposed facilities within 180 days from the rating letter date to maintain validity.

Global Health Limited , operating under the Medanta brand, has reported robust financial performance for Q2, with significant growth in revenue and profitability. The company also announced major expansion plans, including the launch of a new hospital in Noida and plans for a larger facility in Mumbai.

Financial Highlights

Global Health reported consolidated total income of INR 11,189.00 million in Q2, representing a 14.8% year-on-year increase and a 6.4% quarter-on-quarter growth. The company's EBITDA, excluding the Noida facility, grew by 13.7% year-on-year to INR 2,804.00 million, with margins of 25.2%. Net profit saw a substantial increase of 21.1% year-on-year, reaching INR 1,584.00 million.

New Noida Hospital

Global Health launched a new 550-bed super specialty hospital in Noida, strengthening its presence in the Delhi/NCR region. The facility, inaugurated by UP Chief Minister Yogi Adityanath, features:

• 25 super specialities
• 130 ICU beds
• 16 operating theatres
• 200 experienced doctors

Strategically located with metro connectivity, the hospital will serve patients from Delhi-NCR and Western Uttar Pradesh. During its initial operations, the Noida facility generated revenue of INR 39.00 million but recorded an EBITDA loss of INR 197.00 million. The new hospital is expected to create 5000-7000 employment opportunities and expand Medanta's NCR footprint with advanced medical technologies, including robotic surgery systems.

Mumbai Hospital Expansion

The company has announced plans for a 750-bed hospital in Mumbai, increasing the capacity from the initially proposed 500 beds. The estimated project cost for this facility has been revised to INR 15,300.00 million, up from the earlier estimate of INR 12,000.00 million.

Operational Expansion

Global Health continues to expand its operations:

• Added 37 new beds at its Patna facility during the quarter
• Onboarded over 200 doctors across its network
• Increased international patient revenue by 48.5% year-on-year to INR 762.00 million

Future Growth Plans

The company is actively pursuing expansion opportunities:

• Acquired 3.5 acres of land in Guwahati for INR 600.00 million, indicating potential future development in the northeastern region of India
• Continued focus on increasing bed capacity and expanding geographical presence

Global Health's strong quarter performance, coupled with its strategic expansions, positions it well for continued growth in the healthcare sector. The company's focus on increasing bed capacity, expanding its geographical presence, and investing in its workforce reflects a comprehensive approach to sustainable growth in the competitive healthcare industry.