Examining the Health of Krishna Institute Of Medical Science

“The revenue growth has to be generated from increased by volume and not by charging heavily. Volumes and not tariff should lead the growth. Under the ages of KIMS various programs were conducted to create a breast awareness program during the month of October 2022. The breast cancer day is observed on October 13 every year. I thank you for your continued trust and support. I assure you that we will keep growing with all the passion in serving the patients and protecting the interests of investors. As I keep saying you are our growth engine enabling us to sustain our relevance, progress and vitality.”
-Bhaskar Rao Bollineni, Founder & Managing Director

Stock Data

Ticker	KIMS
Exchange	NSE & BSE
Industry	Hospital

Share Price

Last 1 Month	9.6%
Last 6 Months	1.04%
Last 12 Months	13.9%

Business Basics

Krishna Institute of Medical Sciences, is a leading healthcare service provider in India, headquartered in Hyderabad. The company was founded in 2000 by Dr. Bhaskar Rao Bollineni, and currently operates multiple hospitals and healthcare facilities across Andhra Pradesh, Telangana, Karnataka, and Maharashtra. KIMS offers a wide range of medical services, including general medicine, surgery, cardiology, neurology, nephrology, orthopedics, and oncology, among others. The company has a team of highly qualified and experienced doctors, nurses, and medical staff, and is known for its state-of-the-art infrastructure, advanced medical equipment, and patient-centric approach.

In addition to its hospital services, KIMS also operates a pharmacy chain, diagnostic centers, and telemedicine services, which allows patients to consult with doctors remotely. The company has also established partnerships with several leading healthcare organizations, both in India and abroad, to enhance its service offerings and improve patient outcomes. With a commitment to providing affordable and accessible healthcare to all, KIMS is well-positioned for continued growth and success in the Indian healthcare industry.

Q3 FY23 Financial Performance

Krishna Institute of Medical Sciences reported Total Income for Q4 FY23 of ₹568.61 Crore up from ₹395.96 Crore year on year, a growth of 43.6%. The consolidated Net Profit of ₹81.82 Crore, down 2.8% from ₹84.18 Crore in the same quarter of the previous year. The Earnings per Share is ₹9.49 for this quarter.

KIMS’ Expansion Strategy

The company increased its ownership of three of its subsidiaries during the quarter by 1.92% in Sunshine Hospitals, 4.07% in Kondapur Hospital, and 7.79% in Srikakulam Hospitals. The management’s long-term goal for these units is to increase its acquisitions. However, in order to concentrate on Telangana’s core markets, the company sold one of its subsidiaries, Suryateja Healthcare Private Limited (Sunshine Karimnagar Hospital), during the quarter.

The Sunshine Secunderabad Hospital’s new unit is nearly finished, and the company plans to move into this cutting-edge facility by FY2024. Both the Bengaluru Semi Brownfield project and the Nashik Greenfield project are making good progress and are anticipated to be operational by FY2025. By FY2024, the Vizag Gastro Unit will be operational. The goal of the expansion plans is to increase volumes through KIMS’s expanded reach. Strong balance sheet position is driving the company’s expansion strategies, which are intended to drive stronger balance sheets by creating value. In the future, this expansion ought to boost returns for KIMS investors.

Hospital Industry In India

The hospital industry in India has undergone a significant transformation over the past few decades. With the rapid growth of the country’s economy and increasing investments in healthcare, India has emerged as a hub for medical tourism and healthcare services. The Hospital industry in India accounts for 80% of the total healthcare market and is witnessing a huge investor demand from both global as well as domestic investors. The hospital industry is expected to reach $132 billion by 2023 from $61.8 billion in 2017, growing at a CAGR of 16-17%. One of the key factors driving the growth of the hospital industry in India is medical tourism. India has emerged as one of the leading medical tourism destinations globally, thanks to the availability of world-class medical facilities at affordable prices.

The hospital industry in India comprises public as well as private hospitals, with the latter dominating the sector. Private hospitals account for about 80% of the total hospitals in India and cater to the majority of the population. These hospitals offer various services, including primary care, secondary care, and tertiary care. They are equipped with state-of-the-art infrastructure, modern medical equipment, and highly qualified medical professionals.

Some of the challenges faced by the hospital industry in India include lack of infrastructure and medical supplies, as was exposed during the second wave of COVID-19 in April 2021. There are also disparities and challenges to equitable, accessible and quality healthcare when compared geographically. The government of India has taken several initiatives to improve healthcare in India. One such initiative is the Ayushman Bharat-Health and Wellness Centers (AB-HWC) initiative, launched in 2018, under which 1.5 lakh Sub-Health Centers (SHCs) / Primary Health Centers are being upgraded into HWCs for the betterment of local public health care. More than 77,406 HWCs have become functional and are delivering comprehensive primary health care closer to the homes of the people.