Aster DM Healthcare witnessed near 35% fall in revenue for India and Gulf Cooperation Council (GCC) businesses in April as compared to same month last year due to the impact of COVID-19 on operations.
However, the healthcare services provider expects its performance to improve from start of Q2 of FY 2021 and hopes to cover up lost ground and achieve near normalcy by H2 of FY 2021.
For May, GCC continues to maintain the same revenue trend as April in spite of Eid holidays, whereas in India revenue has improved by approximately 23% as compared with April, but still down around 20% compared with May last year.
The current unexpected situation has even impacted Aster DMs regular business operations.
Lockdown restrictions in India and GCC countries, along with restrictions to undertake elective procedures, have impacted occupancy level in April.
At the beginning of the outbreak, Aster DM Healthcare also observed disruption in the supply chain which then led to shortages of medical devices, personal protective equipment (PPEs), medicines and other essential supplies, but now it is getting normalised.
Shut down of international travel has impacted the company’s medical value tourism business in India.Medical travel contributes around six per cent of consolidated India revenue.
COVID-19 pandemic has caused the company to postpone all its capex plans except for the ones near their completion such as the Sonapur Hospital in Dubai.
Meanwhile, the company is servicing its existing debt and that it has adequate unutilised working capital limits to support the operation.
Net net we expect continued weakness in the business ahead atleast for the next 2 to 3 quartesr until growth momentum picks up again.
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