The Indian Healthcare services industry (as with many others) is starting to see a strong recovery on volumes, Revenues and EBITDA and is expected to continue to improve to pre-covid levels in the coming quarters. Movement in listed Healthcare valuations seem to reflect this changing ground reality.
 
Executive Summary

1. Due to lockdowns, there was a severe impact on the operating & financial performance of Healthcare Services. Listed Healthcare valuations, which witnessed an all-time high in the pre-Covid period (Jan-Feb’20), saw a significant fall in the Mar-Apr’20 period. 

2. Overall footfalls, postponement of elective surgeries & curbs/hesitation with domestic /international travel impacted revenue significantly. Given the high degree of fixed costs, the overall EBITDA also declined significantly in Q1.

3. However, patient volumes and financials began to recover from June/July and in the case of some well-managed hospitals, IP revenues (without Covid admissions) have already recovered to as high as 60-90% of pre-covid levels.

 

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