Narayana Health says it is growing without passing on higher costs to patients
Sandhya J, the Group CFO of Narayana Health, provided key insights into the company's ambitious growth strategy. The healthcare giant is gearing up for a substantial expansion, focusing on doubling its current capacity and exploring inorganic growth opportunities.
Narayana Health, a leading private hospital network, has managed to grow without raising the average revenue per patient. This approach reflects the company's commitment to not burden patients with additional costs, even when facing industry headwinds.
Sandhya J, Group CFO of the company formerly known as Narayana Hrudayalaya, pointed out to CNBC-TV18, "We do not take up prices during the year. At the beginning of the year, on January 1, we publish our prices on our website, and that remains the price for the rest of the year."
The CFO added that under very unusual circumstances, the company might consider a price adjustment, although it has never done so in the past. Historically, Narayana Health has adopted a policy of minimal price increases, typically opting for low single-digit hikes annually.
In terms of growth though, she noted that Narayana Health has achieved significant progress without resorting to raising the average revenue per patient.
A key factor contributing to this growth is the improvement in the surgical mix, which has enhanced the hospital's service offerings. Additionally, the company is doubling down on expanding its capacity, actively exploring inorganic opportunities to bolster its healthcare services.
Narayana Health has applied for an insurance license, a process that is currently underway and is also actively exploring inorganic opportunities as part of its broader strategy to enhance its footprint.
"We have built a very strong portfolio of services, and we are doubling down on our capacity strength. We look at inorganic assets from time to time opportunistically," stated Sandhya J.
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Operating multiple hospitals and heart centres in key Indian cities including Bangalore, Delhi, Gurugram, Kolkata, Ahmedabad, Raipur, Jaipur, Mumbai, and Mysore, and with an international subsidiary in the Cayman Islands, Narayana Health has a widespread presence.
Shares of Narayana hit a record high of ₹1,182 apiece on November 15 after its second-quarter profit beat Street estimates. The company's net profit rose over 34% year-on-year (YoY) to ₹226.7 crore in the quarter ended September.
Bengaluru-based Narayana Health, established in the year 2000 by Devi Shetty, currently has a market capitalisation of ₹22,165.99 crore.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
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