Manipal Health Enterprises Ltd reported a nearly 8% year-on-year decline in consolidated net profit for the first quarter, even as revenue and operating profit posted strong growth during the period.Â
Net profit stood at Rs 232 crore in Q1, down 7.5% from Rs 250 crore a year earlier, according to an exchange filing on Thursday.
The decline came despite consolidated revenue rising 38.1% year-on-year to Rs 3,091 crore from Rs 2,238 crore, indicating pressure on profitability even as the healthcare chain expanded its top line.
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Consolidated Ebitda rose 25.6% to Rs 737 crore from Rs 586 crore in the year-ago quarter. However, the Ebitda margin contracted to 23.8% from 26.2% a year earlier, reflecting a sharper increase in costs relative to operating income.
The company also incurred a one-time cost of Rs 15.5 crore during the quarter, which weighed on its bottom line.
The results highlight a mixed performance for Manipal Health, with robust revenue growth and higher operating earnings offset by margin compression and exceptional costs.Â
While the healthcare provider crossed the Rs 3,000-crore revenue mark during the quarter, the slower growth in Ebitda compared with revenue underscores the pressure on operating profitability.
On a year-on-year basis, revenue increased by more than Rs 850 crore, while Ebitda rose by Rs 151 crore.Â
The widening gap between revenue and Ebitda growth resulted in the decline in operating margin.
The Q1 performance comes as the healthcare sector continues to see strong demand for hospital services, while operators face rising costs and investments in capacity and infrastructure.
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