Shares of Yatharth Hospital & Trauma Care Services fell by more than 5% on Thursday after the company announced its Q2 FY25 results. As of 9:36 am, the stock was trading 5.18% lower at ₹623.05 on the National Stock Exchange (NSE).
Financial Highlights for Q2 FY25:
- Sales: The company reported a robust 27.14% increase in sales, reaching ₹217.77 crore in Q2 FY25 compared to ₹171.28 crore in Q2 FY24.
- Net Profit (NP): Net profit for the quarter rose 12.14% year-over-year, amounting to ₹30.95 crore, up from ₹27.60 crore in the corresponding period last year.
- Operating Profit Margin (OPM): The operating profit margin declined to 25.09% in Q2 FY25 from 26.61% in Q2 FY24, reflecting margin pressure despite increased sales.
- Profit Before Depreciation and Tax (PBDT): PBDT grew by 21% to ₹56.04 crore, up from ₹46.45 crore in the year-ago quarter.
- Profit Before Tax (PBT): PBT rose slightly by 1% to ₹40.09 crore from ₹39.57 crore in Q2 FY24.
Summary
Despite strong year-over-year sales growth of over 27%, the company faced margin pressures, as reflected in the decline in its operating profit margin. The stock’s fall may reflect investor concerns over the narrowing margins and modest profit growth.
Yatharth Hospital’s focus on enhancing sales volume is evident, but the market reaction suggests caution among investors, possibly due to operational challenges impacting profitability.
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Yatharth Hospital