BENGALURU (Reuters) – Aster DM Healthcare posted its first increase in quarterly profit since the first quarter of fiscal 2023 on the back of strong performance at the company’s domestic hospitals segment.
Consolidated net profit for the third quarter rose 28.6% to 1.79 billion rupees ($21.6 million), the company said on Thursday.
While Aster’s India business accounts for roughly a quarter of its revenue and Gulf Cooperation Council countries the rest, the company has focussed on expanding within India.
In November, the company agreed to sell a majority stake in its Gulf business for $1 billion to an investor group.
Aster’s India revenue rose 23% in the third quarter ending Dec. 31, while Gulf revenue increased 14%.
An increase in the number of surgical procedures in the latter half of 2023 has benefited Aster, as well as rivals Apollo Hospitals and Max Healthcare, despite October to December being a seasonally weak period for hospitals with fewer people scheduling health-related appointments.
Revenue from Aster’s hospital segment, which accounts for more than half of the company’s revenue, climbed almost 18% in the quarter.
Its clinics and retail pharmacies units also recorded revenue increases of 18% and 12%, respectively. The company’s third-quarter total revenue rose 16% to 37.11 billion rupees.
Aster had reported a loss in the second quarter, which was preceded by four straight quarters when the company reported a lower profit.
Losses in new hospitals, including Aster Royal Hospital Muscat and Aster Narayanadri Tirupati, had hurt the company during the second quarter ended September.
Max Healthcare reported a rise in third-quarter profit as it earned higher revenue per bed, while Apollo Hospitals also beat profit estimates.
($1 = 82.9700 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Shounak Dasgupta)
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