In The Chairman's Footsteps

As Aster DM Healthcare enters its 33rd year on December 11, chairman Dr Azad Moopan prepares to hand over the reins to Deputy Managing Director Alisha Moopen by end 2022. Is the company on track to ramp up India revenues to at least one fourth of the business by 2025? And where does Ayushaman Bharat figure in their plans?

- Viveka Roychowdhury

From a single clinic in Dubai, UAE in 1987, to 25 hospitals, 116 clinics and 238 pharmacies in 32 years, across nine countries in the GCC region and India, the Aster DM Healthcare group is today one of the largest private healthcare service providers operating in multiple GCC states (12 hospitals, 108 clinics, 238 pharmacies). The group’s annual revenues crossed the $1 billion mark (approximately $1.14 billion/ Rs 7,963 crore in FY19).

The group entered India in 2001 and went public in February 2018. It is emerging as a significant player in India's healthcare market as well, with 13 hospitals and eight clinics. This October, the group announced the launch of its diagnostics labs business in India as well, re-affirming its aggressive growth strategy in the sub-continent.

According to a presentation made at an investor and analyst meet on August 22 this year, the GCC accounted for the lion's share (approximately $953 million) of Aster DM's FY19 revenues. Of the three revenue streams, hospitals accounted for 49 percent, pharmacies 27 percent and clinics 24 percent. (See Figure 1: Aster DM Healthcare - At a glance)

India revenues in FY19 were around 17 per cent, (approximately $188 million). Recipient of India's fourth highest civilian award the Padma Shri, Dr Azad Moopen, Chairman, Aster DM Healthcare has plans to ramp this up to at least 25 percent by 2025. And he is putting the team in place to do just that. (See Figure 2: Aster DM Healthcare - Revenue and EBITDA - FY19)

The recent quarterly figures were reassuring. In Q2FY20, Aster DM Healthcare’s revenue from operations improved by 14 percent to Rs 2,087 crore compared to Rs 1,837 crore in the same quarter last year. EBITDA (excluding other income and before Ind AS 116) increased by 39 percent Y-o-Y to Rs 174 crore compared to Rs125 crore in Q2FY19. EBITDA post Ind AS 116 impact for Q2FY20 is Rs 245 crore.