HealthCare Global Enterprises Limited (“HCG”), the leader in India in speciality healthcare services focused on oncology, fertility and precision diagnostics today announced its financial results for the quarter (“Q1”) ended June 30 for fiscal year (“FY20”). Effective 1 April 2019, the Company has adopted IND AS 116 'Leases' standards, applied to lease contracts existing on 1 April 2019. The effect of this adoption have not been retrospectively adjusted for the year ended 31 March 2019 and previous period financials are not comparable. Highlights for the quarter ended June 30th, 2019

 Consolidated Income from Operations (“Revenue”) was INR 2,689 mn as compared to INR 2,266 mn in the corresponding quarter of the previous year, reflecting a year-on-year increase of 19%.

 Consolidated Profit Before Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“EBITDA”) was INR 462 mn including IND AS116 adjustment and INR 317 mn excluding IND AS116 adjustment, as compared to INR 315 mn in the corresponding quarter of the previous year.

 Consolidated Profit Before Other Income, Depreciation and Amortization, Finance Costs, Exceptional Items and Taxes (“Operating EBITDA”), was INR 449 mn including IND AS116 adjustment and INR 304 mn excluding IND AS 116 adjustment, as compared to INR 306 mn in the corresponding quarter of the previous year.

 Operating EBITDA for existing centres was INR 491 mn including IND AS116 adjustment and INR 394 mn excluding IND AS116 adjustment, reflecting an Operating EBITDA margin of 17% excluding IND AS116 adjustment.

 Loss from new centres was INR 424 mn including IND AS116 adjustment and INR 90 mn excluding IND AS116, as compared to a loss of INR 57 mn in the corresponding quarter of the previous year.

 Consolidated Profit after Taxes and Minority Interest (“PAT”)(4) was a loss of INR 180 mn including IND AS116 adjustment and loss of INR 100 mn excluding IND AS116 adjustment, as compared to a loss of INR 34 mn in the corresponding quarter of the previous year.

Business Updates for Q1 FY20

 34% growth in Gujarat as multiple new centres ramp-up o Presence across 4 cities, now contributes 31% to HCG centres revenues:

 o 78% revenue growth at Bhavnagar driven by the ramp-up of the new oncology unit

 o Baroda cancer centre, launched in May’ 2016, clocking double-digit EBITDA margin consistently

 o Rajkot centre ramping up well with the reduction in losses, nearing break-even point

 Continuing strong growth in Maharashtra region, with 25% revenue growth y-o-y:

 o Continued reduction in losses from Borivali and Nagpur new centres

 o Nashik centre expansion driving enhancement of specialized service offerings in the region

 Kolkata cancer centre launched, offering comprehensive services in an upcoming urban locality

 The positive trend at Milann reflected in the growth in registrations, IVF cycles and revenues

 New first of its kind Oncology Information System goes live at Bengaluru - Center of Excellence which will drive digital transformation and set the foundations for data-driven analytics and research towards improving clinical outcomes

Commenting on the results, Dr B.S. Ajaikumar, Chairman and CEO, HealthCare Global Enterprises Ltd. said, “We are pleased to report Q1 FY20 results with continuing growth across our businesses. Our core HCG oncology the business continues to get stronger with enhanced presence and scale across attractive markets, at a time when cancer incidences are on a rising trend. Our oncology-focused business model is fundamentally robust - clinical and operational excellence, economies of scale and especially with majority capex and investment cycle behind us, we remain excited about the growth prospects for the business, in spite of short-term challenges and negative outlook in the ecosystem for healthcare, industry and economy at large. With the strong performance of existing centres as the base foundation, and new centres nearing inflexion point to replicate the existing centres as the future growth drivers, we are positively looking forward towards superior cash flows and return generation from the capital deployed over the last few years. Having created a unique platform across oncology, fertility and precision diagnostics, with Pan-India leadership, we remain committed to driving value creation for all our stakeholders.”