| Experienced Management and long track record of operations
DNHPL was founded by Dr. Deepak Namjoshi (Director), who is a Cardiologist and Chest Physician. Dr. Namjoshi has an extensive experience of over 3 decades as a cardiologist and is also actively involved in the day-to-day activities of the hospitals. The company also has around 190 visiting and inhouse doctors with an extensive experience across various specialities. The company also has maintained healthy relations with various public and private sectors corporates like Reserve Bank of India (RBI), Tata Motors, Mahindra and Mahindra, L&T group, etc.
Acuité believes that the long track record of operations will benefit the company going forward.
Moderate scale of operations
DNHPL has four hospitals located in Mumbai, first in Juhu, second in Andheri East with a capacity of 100 beds each, third one in Kurla with current operational capacity of 100 beds and fourth one in Malad with a capacity of 100 beds. All these hospitals operate in the name of Criticare Multispeciality Hospital and provide medical treatments for various specialities ranging from general pathology to cardiology, Gynaecology, orthopaedics, trauma care, etc.
The revenue stood at Rs.287.23 Cr. in FY2024 (Prov.) as against Rs.217.03 Cr. in FY2023. The increase in the revenue is on account of improvement in occupancy levels at Malad and Kurla hospital. The average length of stay is 4 to 5 days for all the hospitals.The occupancy level for its old hospitals at Juhu and Andheri is around 85 to 90%. For Kurla hospital, the occupancy level ranges from 55 to 65% and for newly started Malad hospital the current occupancy level is 35-45%.
Acuite believes that the occupancy level of the newly started hospital is expected to improve going ahead, leading to an increase in scale of operations.
|
| Below Average Financial Risk Profile
The financial risk profile of the company is below average marked by moderate net worth, high gearing and a moderate debt protection metrics. Tangible Networth of the company stood moderate at Rs.53.78 Cr. in FY2024 (Prov.) as against Rs.39.48 Cr. in FY2023. Total Debt of the company stood at Rs.230.22 Cr. in FY2024 (Prov.). Gearing (Debt/Equity) of the company stood moderately high at 4.28 times in FY2024 (Prov.) as against 5.80 times in FY2023. Debt protection metrics remain moderate with Debt Service Coverage ratio (DSCR) at 1.41 times in FY2024(Prov.) as against 1.21 times in FY2023 and Interest Coverage ratio (ICR) at 2.25 times in FY2024 (Prov.) as against 1.89 times in FY2023.
Stringent regulatory framework in the healthcare sector:
Despite the increasing trend of privatization of healthcare sector in India, the company continues to operate under stringent regulatory environment. Accordingly, regulatory challenges continue to pose a significant risk to private healthcare institutions, as they are highly susceptible to changes in regulatory framework. Healthcare is a highly sensitive sector where any mishandling of a case or negligence on part of any doctor and/or staff of the unit can lead to distrust among the masses. Thus, the healthcare providers need to monitor each case diligently and maintain standard in services in order to avoid the occurrence of any unforeseen incident. They also need to maintain high vigilance to avoid any malpractice in any pocket.
|
