Narayana Health announces planned price hike for next year, says single-digit correction based on inflation

In terms of pricing strategy, Sandhya underlined the company's intention not to adopt an overly aggressive stance. This Bengaluru-based private hospital is committed to maintaining a specific price range, with the possibility of slight enhancements.

However, the company does not aim to achieve substantial profit margins of around 20 percent. Such margins would necessitate significant adjustments to pricing, which would not align with their desired operating model and service quality standards.

She noted that a substantial portion of their improvements is coming from enhanced efficiencies in operations.

“We would probably operate at this margin, maybe slight improvement coming out of efficiencies, we obviously are focusing on efficiencies, but we don't exercise the price lever, so as aggressively, so therefore, I am not going to give you an extremely optimistic view saying we will go on late 20s on the margin side.”

Discussing the demand landscape, Sandhya noted that the demand for Narayana Health's services remained robust even after the challenges posed by COVID-19. Initially, there was a resurgence of pent-up demand, which has now subsided. The sustained demand is seen as a result of improved healthcare awareness among the population rather than a temporary post-COVID surge.

Sandhya highlighted the advancements in medical practices, using the example of simplifying complex surgeries like knee replacements through innovative approaches.

Looking ahead, the group CFO shared the company's strategic plan to elevate its position in the value chain.

The stock was trading at Rs 996.40 on the NSE, up by 0.69 percent. It has lost over 3 percent in the last one months.