Shares of Rainbow Children’s Medicare, more commonly known as Rainbow Hospitals, surged more than 4% in early trading on May 15, a day after the hospital giant reported a string of stellar quarterly earnings for the quarter ended March.
The company’s net profit for the January-March period surged 339.34% year-on-year to Rs 53.86 crore, compared to Rs 12.2 crore a year earlier. Revenue jumped 49.2% to Rs 317 crore from Rs 212.4 crore a year earlier.
The strong performance in the quarter was attributable to strong momentum across all key operating metrics, including outpatient visits, hospital admissions and occupancy rates.
Occupancy for the quarter improved significantly to 58.82% from 39.64% in the fourth quarter of the previous fiscal year.
Rainbow Children’s Hospital shares were trading at Rs 873 on the National Stock Exchange, up 2.75%, at 9:49 am. The stock also hit an intraday high of Rs 886, near its 52-week high of Rs 886.45.
About 200,000 shares changed hands on the exchange, compared with a weekly average of 100,000 shares per day.
Clarifying the company’s expansion plans, Ramesh Kancharla, Chairman and Managing Director of Rainbow Children’s Medicare, said the proposed expansions for the current financial year include Central Hyderabad (60 beds), Hyderabad (50 beds), Anna Nagar (80 beds) and Sarjapur (80 beds).
“Another 160 beds are scheduled to start next financial year in Rajahmundry (100 beds) and a new spoke hospital in Bengaluru (60 beds). Also, the company aims to add around 400 beds in the National Capital Region 26- FY27,” Kanchara said in an exchange filing.