Healthcare Valuation Trends (Sep'20)
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.
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.
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.
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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