- Home
- Medical news & Guidelines
- Anesthesiology
- Cardiology and CTVS
- Critical Care
- Dentistry
- Dermatology
- Diabetes and Endocrinology
- ENT
- Gastroenterology
- Medicine
- Nephrology
- Neurology
- Obstretics-Gynaecology
- Oncology
- Ophthalmology
- Orthopaedics
- Pediatrics-Neonatology
- Psychiatry
- Pulmonology
- Radiology
- Surgery
- Urology
- Laboratory Medicine
- Diet
- Nursing
- Paramedical
- Physiotherapy
- Health news
- Fact Check
- Bone Health Fact Check
- Brain Health Fact Check
- Cancer Related Fact Check
- Child Care Fact Check
- Dental and oral health fact check
- Diabetes and metabolic health fact check
- Diet and Nutrition Fact Check
- Eye and ENT Care Fact Check
- Fitness fact check
- Gut health fact check
- Heart health fact check
- Kidney health fact check
- Medical education fact check
- Men's health fact check
- Respiratory fact check
- Skin and hair care fact check
- Vaccine and Immunization fact check
- Women's health fact check
- AYUSH
- State News
- Andaman and Nicobar Islands
- Andhra Pradesh
- Arunachal Pradesh
- Assam
- Bihar
- Chandigarh
- Chattisgarh
- Dadra and Nagar Haveli
- Daman and Diu
- Delhi
- Goa
- Gujarat
- Haryana
- Himachal Pradesh
- Jammu & Kashmir
- Jharkhand
- Karnataka
- Kerala
- Ladakh
- Lakshadweep
- Madhya Pradesh
- Maharashtra
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Odisha
- Puducherry
- Punjab
- Rajasthan
- Sikkim
- Tamil Nadu
- Telangana
- Tripura
- Uttar Pradesh
- Uttrakhand
- West Bengal
- Medical Education
- Industry
Aster DM expected to contain debt levels despite lower profitability: ICRA
The stable outlook reflects ICRA's expectations that the group's track record besides diversification across segments and geographies will aid in mitigating the impact of external circumstances like Covid-19 to some extent.
New Delhi: Investment information agency ICRA has reaffirmed Aster DM Healthcare's ratings on various financial instruments worth Rs 266 crore at A-minus and A2-plus, and assigned them for enhanced limits.
The stable outlook reflects ICRA's expectations that the group's track record besides diversification across segments and geographies will aid in mitigating the impact of external circumstances like Covid-19 to some extent.
Moreover, the group is undertaking various cost-containment measures and reducing capital expenditure which is expected to contain debt levels despite the lower profitability anticipated in FY21.
The ratings take into account Aster DM's established market position in the healthcare industry across the Gulf Cooperation Council (GCC) countries and growing presence in India. They are also supported by the group's diversified revenue sources from various healthcare segments like hospitals, clinics, and pharmacies, said ICRA.
Also Read: Hospitals May Face More Pricing Restrictions: Rating Agency ICRA
In FY20, operating income grew by 10 percent whereas adjusted operating profit before interest, tax, depreciation, and amortization (OPBITDA) margin increased to 11.1 percent from 10.8 percent in FY19 despite the impact of Covid-19 on operations of the group in March.
As on March 31, total debt by adjusted OPBDITA stood at 3.3 times as against 3.2 times as on the same day last year. The group continues to witness steady improvement in revenue across segments, backed by the ramp-up of new facilities and improving operations in the existing facilities, said ICRA.
The group's capital expenditure plans in FY21 have been curtailed in light of the Covid-19 pandemic and consequently, debt drawdown towards capital expenditure is expected to be limited to certain ongoing projects in India.
ICRA said Aster DM had unencumbered cash and bank balances of Rs 168 crore as on March 31. It reported an operating income of Rs 8,738 crore in FY20 as compared to Rs 7,963 crore in FY19.
Also Read: Aster DM India, Gulf Revenue Falls By 35 Percent Amid COVID Crisis
Farhat Nasim joined Medical Dialogue an Editor for the Business Section in 2017. She Covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She is a graduate of St.Xavier’s College Ranchi. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751