GPT Healthcare Ltd IPO

As of September 30, 2023, the company operates four full-service hospitals under the ILS brand, with an aggregate bed capacity of 561. The company’s growth in Eastern India is driven by the company’s prominent presence in densely populated areas of West Bengal, which have underpenetrated markets owing to a low number of private hospitals.

The company right-sizes its hospitals according to the needs of each sub-region in which it operates. For example, the company has entered into long-term leases for some hospitals and utilises land on long-term, low-cost terms to avoid high fixed rental costs, such as the land for its Salt Lake Hospital and Agartala Hospital, which hold leases of 999 years and 99 years, respectively. Accordingly, the company has been able to minimise lease expenses and lease renewal risks that would have otherwise driven up the cost of operations. Mid-sized hospitals also enable the company to incur lower capital expenditure per bed in comparison to other secondary care hospitals in India.

The company has a consistent track record of expanding operations and has increased the bed capacity of hospitals from eight beds in July 2000 to 561 beds as of September 30, 2023. Its EBITDA margins were 22.14% for FY23, and 18.87% for the six months ended September 30, 2023.