Yatharth Hospitals to double bed count in three years, targeting more acquisitions

Yatharth Hospitals, which recently announced a ₹116 crore acquisition of Faridabad-based Asian Fidelis, is looking to ramp up its presence across North Indian markets of Uttar Pradesh, Madhya Pradesh and Haryana. The hospital chain will look to double bed count to 2,800 over a three-year period through both organic and inorganic routes. 

According to Yatharth Tyagi, Director, Yatharth Group of Hospitals, inorganic growth would see the super-speciality hospital chain target one acquisition – preferably of around 200 beds – every year in the coming days. 

The healthcare provider continues to be debt-free post listing on the bourses. Inorganic expansion plans will also include taking over facilities under the O&M (operation and maintenance) models. 

• Also read: Yatharth Hospital IPO subscribed 36 times

Yatharth Hospitals had raised close to ₹600 crore during their recently concluded IPO. 

“We see a scope of expanding presence in the NCR markets, apart from states like Haryana and MP. We are already in talks for more acquisitions and over the next two to three years you will see at least one announcement every year. Our guidance remains towards doubling the bed-count to 2800 in three years,” he told businessline. 

Organic Expansion 

In terms of organic expansion, Yatharth Hospitals will add 450 beds across two of its existing facilities over the next three years. 

It’s current presence is in Uttar Pradesh (three facilities in Noida, Greater Noida and Noida Extension), one each in MP (Orchha) and Haryana (Faridabad). 

Integration of the Asian Fidelis with Yatharth and rebranding of the former is expected to be completed by April. 

An additional ₹50 crore is being made to add on facilities that include super-speciality surgeries and procedures at the hospital, Tyagi said. 

• Also read: Yatharth Hospital & Trauma Care raises ₹120 crore via pre-IPO placement

Yatharth Hospitals reported an operating revenue of ₹493 crore, up 31 per cent Y-o-Y in the nine months ending December. Profit after tax stood at ₹76 crore, up 57 per cent Y-o-Y, whereas the PAT margin expanded 259 bps Y-o-Y to 15.5 per cent in 9M FY24.

Bed occupancy stood at 53 per cent, compared to 44 per cent in 9M FY23. 

The Average Revenue Per Occupied Bed (ARPOB) is ₹28,316, up 8 per cent Y-o-Y in 9M FY24.