Rainbow Children’s Medicare surges 4% on stellar quarterly show

Shares of Rainbow Children’s Medicare, commonly known as Rainbow Hospitals, surged over 4 percent in early trade on May 15, a day after the hospital major posted a stellar set of quarterly earnings for the March-ended quarter.

The company’s net profit for the January-March period skyrocketed 339.34 percent year-on-year to Rs 53.86 crore against Rs 12.2 crore in the same quarter last year. Revenue jumped 49.2 percent to Rs 317 crore against Rs 212.4 crore year-on-year.

The robust performance during the quarter was attributed to the strong momentum witnessed across all key operating metrics including outpatient footfalls, inpatient volumes and occupancy.

Occupancy during the quarter under review improved significantly to 58.82 percent from 39.64 percent in the fourth quarter of the previous fiscal.

Brokerage firm ICICIdirect is also positively surprised by the hospital major’s better-than-expected occupancy rates in Q4 despite weak seasonality. “We remain positive on the company’s focused approach of catering to the pediatric and perinatal cohort of hospitals vertical,” the broking firm stated in its report.

At 09.49 am, shares of Rainbow Children’s Hospital were trading with gains of 2.75 percent at Rs 873 on the National Stock Exchange. The stock also scaled an intraday high of Rs 886, inching closer to its 52-week high of Rs 886.45.

Around two lakh shares changed hands on the exchanges, as against the one-week daily traded average of one lakh shares.

Shedding light on the company’s expansion plans,  Ramesh Kancharla, Chairman and Managing Director of Rainbow Children’s Medicare said that the proposed expansion for the current financial year includes an addition of around 270 beds in Central Hyderabad (60 beds), Hydernagar (50 beds), Anna Nagar (80 beds) and Sarjapur (80 beds).

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“Additional 160 beds are slated for commencement in the next financial year at Rajahmundry (100 beds) and a new spoke hospital in Bengaluru (60 beds). Furthermore, the company aims to increase its bed count by around 400 across the National Capital Region by FY26-27,” Kancharla stated in an exchange filing.

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