Overview of Narayana Hrudayalaya’s Q3 Results for 2025
On February 14, 2025, Narayana Hrudayalaya announced their financial results for the third quarter of the fiscal year 2025. The company experienced significant year-over-year growth, but some challenges were evident when comparing the results to previous quarters.
Financial Highlights
Revenue Growth
- Total Revenue: The company reported a total revenue of ₹1,366.68 crore, which indicates a year-over-year increase of 13.55%. This growth shows that Narayana Hrudayalaya continues to expand its operations and services effectively.
- Quarterly Comparison: However, when compared to the previous quarter, the revenue witnessed a decline of 2.38%. This suggests that while the company is performing well over the year, maintaining steady growth on a quarterly basis is proving to be more challenging.
- Profit Trends
- Net Profit: Narayana Hrudayalaya recorded a net profit of ₹192.94 crore for this quarter, which is an increase of 2.62% compared to the same quarter last year.
- Quarterly Decline: In contrast, the profit showed a decline of 2.86% compared to the preceding quarter, indicating that the company faced slight difficulties in maintaining profit levels over the recent months.
Operational Costs and Expenses
Selling, General, and Administrative Expenses
- The company managed to reduce its selling, general, and administrative expenses by 1.69% compared to last quarter. However, these expenses rose by 9.06% when compared to the same quarter a year ago.
- This increasing trend in costs over time may highlight rising operational expenses that need to be addressed for improved profitability.
- Operating Income
- The operating income for this quarter was ₹237.04 crore, reflecting a drop of 2.57% from the previous quarter but showcasing a year-over-year increase of 9.86%.
- This year-over-year performance indicates that, despite recent challenges, the company has managed to enhance its operational efficiency compared to the same period last year.
Earnings Per Share (EPS)
- The diluted earnings per share for Q3 stood at ₹9.50, marking a year-over-year increase of 2.59%. Although there was a decrease of 2.86% from the previous quarter, the overall yearly growth in EPS reflects positively on the company’s performance.
Investment Returns
- In the last week leading up to the results, Narayana Hrudayalaya experienced a downturn of 5.46%. However, over the past six months, the company delivered a return of 12.24%, with a modest increase of 4.36% year-to-date.
- These numbers indicate fluctuations in stock performance but suggest that the company has made some solid gains in the longer duration.
Market Capitalization and Stock Performance
- The current market capitalization of Narayana Hrudayalaya is ₹27,133.85 crore. The stock has faced ups and downs, with a 52-week high of ₹1,417.50 and a low of ₹1,080.
- This stable valuation amidst market fluctuations highlights investor confidence despite the recent performance challenges.
Analyst Recommendations
As of February 15, 2025, the analysis of 9 experts covering Narayana Hrudayalaya’s stock presents a mixed outlook:
- 1 analyst rated it as a Strong Sell
- 1 analyst suggested a Sell
- 5 analysts provided Buy ratings
- 2 analysts recommended Strong Buy
The prevailing consensus indicates a recommendation to "Buy," suggesting that most analysts still have faith in the company’s potential for growth.
Summary of Financial Results
The following table summarizes key financial data for Q3 FY25 compared to Q2 FY25 and Q3 FY24:
| Financial Metric | Q3 FY25 (₹ Crore) | Q2 FY25 (₹ Crore) | Q-o-Q Change (%) | Q3 FY24 (₹ Crore) | Y-o-Y Change (%) |
|---|---|---|---|---|---|
| Total Revenue | 1,366.68 | 1,400 | -2.38 | 1,203.64 | +13.55 |
| Selling/General/Admin Expenses | 277.27 | 282.05 | -1.69 | 254.24 | +9.06 |
| Total Operating Expense | 1,129.64 | 1,156.71 | -2.34 | 987.88 | +14.35 |
| Operating Income | 237.04 | 243.3 | -2.57 | 215.76 | +9.86 |
| Net Income | 192.94 | 198.63 | -2.86 | 188.02 | +2.62 |
| Diluted Normalized EPS | 9.5 | 9.78 | -2.86 | 9.26 | +2.59 |
In conclusion, Narayana Hrudayalaya’s Q3 results reflect a positive trajectory in terms of year-over-year growth, showing resilience in its operations. However, the company faces short-term challenges that need to be addressed for sustained positive performance in the quarters to come. Investors may find the current scenario an opportunity given the mixed analyst recommendations and overall market outlook.
