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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 70.00 | ACUITE A | Stable | Assigned | - |
| Bank Loan Ratings | 246.00 | ACUITE A | Stable | Reaffirmed | - |
| Bank Loan Ratings | 4.00 | - | ACUITE A1 | Reaffirmed |
| Total Outstanding | 320.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE A’ (read as Acuite A) and the short-term rating of ‘ACUITE A1’ (read as Acuite A one) on the Rs.250.00 crore bank facilities of P N Memorial Neuro Centre and Research Institute Limited (PNM).
Further, Acuité has assigned the long term rating of 'ACUITE A' (read as Acuite A) on the Rs. 70.00 crore bank facilities of P N Memorial Neuro Centre and Research Institute Limited (PNM). The outlook is 'Stable'. Rationale for rating The rating reaffirmation is driven by growing revenues of the company along with sustained levels of margins owing to improving occupancy which stood at ~67%-70% at Kolkata unit and ~73%-75% at Siliguri unit. Additionally, the rating continues to derive its strengths from the moderate financial risk profile which though declined in FY25 due to debt availed for capex; but continue to remain comfortable. However, the rating is constrained by intensive working capital nature of operations of the company and substantial investment towards its group companies which remains a key rating monitorable. |
| About the Company |
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Incorporated in 2000 and operational from 2009, PNM operates 2 multispecialty hospitals under the brand ‘Desun’ in Kolkata and Siliguri (West Bengal). Currently, the company has license for 700 beds in the Kolkata unit and 300 beds for the Siliguri Unit. Both the units have 28 medical departments including 1 super specialty heart institute. The day to day operations is managed by Mr. Sajal Dutta and Mr. S.C. Mohapatra.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Acuité has considered standalone business and financial risk profile of PNM to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Experienced management and long track record of operations
Operating from 2009, P N Memorial Neuro Centre and Research Institute Limited (PNM) has a long operational track record of more than a decade and half. The long-standing experience of the promoters has helped the company to establish a strong brand image and secure corporate tie ups with various entities. The tie up is spread across various sectors in the private and government like Government of West Bengal, Jharkhand, Mizoram and Bihar. The clientele of the entity from the private segment includes Air India, Hindustan Unilever, Ahluwalia Contracts, L&T, Hindalco, WIPRO, Microsoft only to name a few. Growing scale of operations The revenue of PNM improved to Rs.395.56 Cr in FY25 as against Rs.303.72 Cr in FY24, attributable to improved occupancy which stood at 67% in FY25 at the Kolkata unit (63% in FY24). Also, the occupancy remained in line for the Siliguri unit at 73% in FY25 (72% in FY24). Further, the occupancy increased to 70% for Kolkata unit and 75% for Siliguri unit in H1FY26. Moreover, the company recorded top line of ~Rs.236 Cr during H1FY26. The improvement in occupancy over the years is due to increase in the number of beds in FY23 at the Kolkata unit due to which the company can cater to the increasing patient volumes. Additionally, the hospital provides radiation treatment for approximately 150 cancer patients on daily basis and also has an exclusive woman, child and paediatric division. Further, the operating margin of PNM though marginally moderated, but stood healthy at 23.34% in FY25 against 24.57% for FY24. The moderation is on account of high administrative and employee costs basis increased scale of operations. However, the PAT margin declined to 11.41% in FY25 against 15.16% in FY24 owing to increase in depreciation and interest costs. Healthy financial risk profile The financial risk profile of the company stood moderate marked by improved net worth, low gearing and moderate debt protection metrics. The tangible net worth stood improved at Rs.291.94 Cr as on 31st March 2025 as against Rs.246.82 Cr as on 31st March, 2024 on account of profit accretion. The total debt of the firm for FY25 increased to Rs.291.02 Cr (Rs.240.94 Cr in FY24) due to availing of new debt of ~Rs.75 Cr to carry out capex towards addition of new equipment’s, infrastructure, etc. Therefore, the gearing increased to 1.00 times as on 31st March, 2025. Further, the debt protection metrics though declined continue to remain comfortable with interest coverage ratio and debt service coverage ratio of 4.73 times and 1.91 times during FY25 (4.93 times and 2.92 times in FY24) respectively. Going forward the financial risk profile is expected to improve backed by steady accruals and no major debt funded capex. |
| Weaknesses |
| Working capital intensive nature of operations
The working capital operations of the company though improved from 189 days in FY24, stands intensive marked by gross current asset (GCA) of 157 days in FY25. This is primarily due to elevated debtor days which stood at 98 days for FY25 (90 days for FY24). It includes receivables from TPAs, various government schemes like- West Bengal Health Scheme, Swasthya Sathi, Modicare, corporate tie ups with- NHPC, HPCL, Indian Oil and ESIC. The collection period is approximately between 2-5 months. Also, GCA days includes advances given to suppliers. Moreover, the average bank limit utilisation of the working capital limits stood at an average of ~86% for last 6 months ending November 2025. Significant exposure to group company PNM has made investments in the form of equity contribution of ~Rs.64 Cr (nearly 22% of its FY25 net-worth) to its 100% subsidiary i.e. ‘Desun Healthcity Foundation’ towards purchase of land for setting up of a medical college. The total project cost for the medical college is ~Rs.350 Cr out of which ~Rs.60-70 Cr has been incurred for land, licenses and approval. Further, additional funding exposure of ~Rs.35-40 Cr will be done by PNM towards the capex in the subsidiary over the medium term. Therefore, any significant increase in exposure to the subsidiary thereby impacting the company’s liquidity or financial risk profile shall be a key rating monitorable. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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Liquidity position of PNM is adequate as reflected from sufficient NCA (net cash accruals) of Rs.64.54 Cr during FY25 as against maturing debt obligations of Rs.23.13 Cr. Additionally, the firm is expected to generate cash accruals in the range of Rs.72.00-78.00 Cr over the medium term against repayment obligations in the range of ~Rs.30.00-34.00 Cr during the same period. The current ratio stood healthy at 1.69 times during FY25 and the cash and bank balance stood at Rs.15.34 Cr as on March 31, 2025.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 395.56 | 303.72 |
| PAT | Rs. Cr. | 45.12 | 46.04 |
| PAT Margin | (%) | 11.41 | 15.16 |
| Total Debt/Tangible Net Worth | Times | 1.00 | 0.98 |
| PBDIT/Interest | Times | 4.73 | 4.93 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable. |
| Any other information |
| None. |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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