The occupancy of companies in the sector is expected to bounce back substantially to 60% in financial year 2022, from the projected occupancy of 52% in 2021
NEW DELHI: The healthcare industry is likely to witness a 20% revenue growth in financial year 2022 and outlook for the sector remains ‘stable’ with swift recovery seen in performance despite covid-19 challenges, credit rating agency ICRA has said.
The occupancy of companies in the sector is expected to bounce back substantially to 60% in financial year 2022, from the projected occupancy of 52% in 2021, ICRA said in a statement.
“There has been significant sequential improvement in occupancy every month after the sharp fall in April and majority of the players are expected to be back in operating profits, starting from the month of August,” said Kapil Banga, assistant vice president, ICRA.
Pent-up demand is also likely to support the performance, as elective procedures cannot be delayed indefinitely, by domestic as well as international patients, it said. Significant capex in the last five years has started contributing to the profitability, and the capex as well as start-up costs of new hospitals are likely to be much lower going forward, which will also aid profitability and debt protection indicators over the medium term.
Source: livemint
