In a notable turnaround, Pristyn Care, the surgery-focused hospital chain, has reported a substantial 45% surge in its revenue, crossing the Rs 450 crore threshold for the fiscal year ending March 2023. This remarkable achievement follows an improved economic strategy, showcasing a stark contrast to the challenging fiscal year of 2022.
Pristyn Care’s Revenue Growth: A Comprehensive Analysis:
Operating Income Surges to Rs 453 Crore: Pristyn Care’s operating income witnessed an impressive growth, reaching Rs 453 crore in FY23, a significant leap from Rs 313 crore in FY22, as per consolidated financial statements from the Registrar of Companies (RoC).
Hybrid Model and Geographic Presence: The company’s hybrid model, involving the establishment of its clinics and utilizing third-party hospital infrastructure, has proven successful. Pristyn Care boasts a network of over 400 doctors providing consultations for 50-plus diseases across 40 cities.
Healthcare Services Dominate Revenue Streams: A noteworthy 75% of Pristyn Care’s operating revenue, totaling Rs 338 crore in FY23, is attributed to income from healthcare services. This marks a substantial increase of 21.6%. The remainder of the income is derived from the sale of medical health products and advertising services.
Non-Operating Income Bolsters Financials: Adding to its financial prowess, Pristyn Care reported a non-operating income of Rs 41 crore, contributing to a commendable total revenue of Rs 494 crore in FY23.
Expenditure Breakdown: Managing Costs Effectively:
Advertising and Sales Promotions: Advertising cum sales promotions accounted for 25% of the total expenditure, witnessing a 17% increase to Rs 220 crore in FY23.
Employee Benefit Costs and Professional Fees: Employee benefit costs grew by 36.3%, reaching Rs 215 crore, with an equivalent amount spent on professional fees to doctors and surgery costs.
Overall Expenditure Climbs: Pristyn Care’s overall expenditure, encompassing material costs, freight, distribution, commissions, legal fees, and overheads, reached Rs 877 crore in FY23, up from Rs 616 crore in FY22.
Financial Performance and Strategic Moves:
Moderate Losses and Key Financial Metrics: Despite significant growth, Pristyn Care managed to control overall costs, resulting in losses growing at a moderate 38.27% to Rs 383 crore during FY23—a substantial improvement from the 332% reported in FY22.
Notable financial metrics include a Return on Capital Employed (ROCE) of -54% and an EBITDA margin of -71%. On a unit level, Pristyn Care spent Rs 1.94 to earn a rupee in FY23.
Funding and Acquisition: In December 2021 (FY22), Pristyn Care secured approximately $85 million in funding from Peak XV Partners, Tiger Global, and others, propelling it into the unicorn club. Further strengthening its market position, the company acquired Lybrate, a Ratan Tata and Tiger Global-backed company, in June 2022 (FY23).
Conclusion:
Pristyn Care’s exceptional fiscal performance in FY23, marked by robust revenue growth and prudent cost management, positions it as a key player in the healthcare industry. With strategic funding and acquisitions, the company continues to make significant strides, solidifying its presence in the market.