Aster DM Healthcare, one of the largest healthcare chains in the Middle East countries and in India, is planning to add over 1500 beds to its existing capacity within the next three years in India.
Kochi based Aster, which currently has 4794 beds (majority in India with 3693 beds) across 13 hospitals in India and 12 hospitals in the Middle East, is planning to add 600 beds in Bangalore, 500 in Chennai and 60 in Kolhapur, besides plans of setting up a new 600 bedded multi specialty hospital in Thiruvananthapuram. Aster also runs 116 clinics and over 238 pharmacies in nine countries, including India.
"The potential of healthcare in India is huge and we realise there are opportunities for growth. We have purchased a seven acre land at Aakkulam in Thiruvananthapuram and is awaiting approvals from the local authorities to finalise plans for a greenfield facility there", Dr Azad Moopen, chairman, Aster DM Healthcare told Business Today.
Further, the hospital chain which started four clinics in Bangalore, is looking at opening more clinics as satellite centres to its hospitals in various cities. As part of plans to develop a diagnostics chain in India, Aster is setting up a central laboratory in Bangalore, which will be ready within a few months.
"We are looking at having about 14 diagnostics centres initially in South India and is also looking at acquisitions", said Sreenath Reddy, Group CFO, Aster DM Healthcare.
Aster DM Healthcare posted revenues of Rs 2,087 crore for the second quarter of FY20, 14 percent increase compared to Rs.1,837 crore in the corresponding previous year quarter.
The Company recorded a net profit of Rs 27 crore for the quarter ending September 30, a year-on-year increase of 118 percent. After accounting as per the Ind AS 116 accounting rules, the PAT stood at Rs 3 crore.
The CFO said currently Aster has Rs 2604 crore net debt on the books, but will continue with the expansion plans and will start reducing debt after the next four quarters.
Dr Moopen said many of Aster's recently started hospitals in India have become cash positive and despite the expansions, Aster has been able to maintain good growth of 15-20 percent topline in the past.
"Going forward our focus will be on continuously enhancing our standards of clinical excellence, ramping up our new hospitals, rationalising costs and continuously exploring viable inorganic and organic opportunities," he said.