Indian hospital group Narayana Health reported a consolidated net loss of INR1.2 billion (US$16.0 million) in the second quarter of 2020, compared with net profit of INR300.2 million (US$4.05 million) in the same period last year.
The parent company of Health City Cayman Islands saw net revenues drop by almost half (49.4%) from INR7.77 billion (US$103.8 million) to INR3.94 billion (US$52.6 million) as the COVID-19 pandemic and related lockdown measures, hit operations in India and Cayman.
Dr. Emmanuel Rupert, the managing director and group CEO of Narayana Health, said “With the full impact of COVID-19 induced lockdown and travel restrictions playing out in the first quarter, we registered operational losses on the expected lines.”
“While the month of April bore the brunt in terms of the operations, there has been a steady uptick in business with us almost breaking even at the consolidated EBITDA [earnings before interest, taxes, depreciation, and amortization] level in June at the revised cost structure, aided by the sharp bounce back in our overseas operations at Cayman Islands,” he noted.
The group’s quarterly income included a dividend from Narayana Cayman Holdings Limited of INR455.22 million (US$6.08 million).
In addition to Health City Cayman Islands, Narayana Health operates a network of 21 hospitals and five heart centres across India along with a heart centre in Chittagong, Bangladesh.
“Despite the lack of meaningful traction at our flagship centres, we are encouraged by the momentum generated by the hinterland facilities and would like to believe that the worst is behind us notwithstanding any fresh or stringent lockdown restrictions getting restored,” Rupert said.
“Looking ahead, amidst all the uncertainty around us, we continue to tread with utmost caution and aim to judiciously deploy our resources in these testing times and embark on a fresh journey to adapt and thrive in the post-COVID world.”