KIMS Q2: Aims to add another 1,000-1,500 beds in next 2 years

Krishna Institute of Medical Sciences (KIMS) posted its Q2FY22 earnings numbers. Doctor Bhaskara Rao Bollineni, MD at KIMS, discussed the earnings' fineprint.

“Two years down the line, we are going to add another 1,000-1,500 beds in both the existing units and even the greenfield and semi-greenfield projects,” he said in an interview with CNBC-TV18.

The capex requirement will be around Rs 1,100 crore between 24 and 36 months.

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Internal accruals are enough to fund the capex plans, he noted.

“If at all there will be a need, we will need another Rs 200-300 crore,” he said.

However, if the company plans to make further acquisitions, then there will be a need to borrow money.

As on today, the number of COVID patients are very minimal. Non-COVID patients have come back to the pre-COVID numbers, he noted.

In terms of sustainable average revenue per bed, he said, “Pre-COVID levels have come back and surgeries are going on. It will keep on increasing, won’t come down. The sustainable range is Rs 25,000 to Rs 26,000.”

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KIMS has acquired 51 percent stake in Sarvejana Healthcare for Rs 362.78 crore.

This is in Telangana. It has nearly 600 beds in three locations of Telangana, and is focused on orthopedics.

“We are very strong in neuro, cardiac, oncology and heart and lung transplant. If this joins with us, then we will be leader in orthopedics too. These are the five major specialties where we will be leader in Andhra Pradesh and Telangana,” he explained.