NephroPlus Reports 29% Increase in Operating Revenue

NephroPlus, a leading dialysis service provider, announced a year-on-year growth of 29% in operating revenue for the fiscal year ending March 2024. This Hyderabad-based company has successfully transitioned to profitability, contrasting its previous Rs 12 crore loss reported in FY23.

According to its consolidated financial statement filed with the Registrar of Companies (RoC), NephroPlus’ operating revenue climbed to Rs 566 crore in FY24, up from Rs 438 crore in FY23.

Dialysis Centres and Patient Care

NephroPlus operates over 275 dialysis centres across more than 170 cities in India, providing care to nearly 20,000 patients each month. Revenue from these services constituted 95% of the company’s total earnings in FY24.

Expense Breakdown

On the expenditure front, the most significant cost remained materials, which increased by 19% to Rs 169 crore, making up over 31% of the total expenses. Meanwhile, employee benefit expenses experienced a slight reduction, falling to Rs 91 crore from Rs 97 crore in FY23. However, healthcare professional fees saw a dramatic rise of 90%, reaching Rs 59 crore. Additionally, hospital fees increased from Rs 48 crore to Rs 56 crore, and other operational expenses rose to Rs 166 crore.

Overall, NephroPlus reported a total cost increase of 19.7%, amounting to Rs 541 crore in FY24. For a detailed breakdown of expenses, readers may refer to various financial sources.

Profitability and Financial Performance

The company’s strategic emphasis on cost control and enhanced margins enabled NephroPlus to achieve a net profit of Rs 35 crore in FY24, a significant turnaround from the Rs 12 crore loss posted the previous year. The Return on Capital Employed (ROCE) improved to 9.40%, and the EBITDA margin reached 18.96%. On a unit basis, NephroPlus spent Rs 0.96 to generate each rupee of revenue in FY24.

Current Assets and Financial Position

As of March 2024, NephroPlus reported current assets valued at Rs 390 crore, including Rs 61 crore in cash and bank balances.

Funding and Expansion Plans

As reported by various startup data intelligence platforms, NephroPlus has raised around $212 million in funding to date, with IFC and Bessemer Venture Partners acting as its primary investors. The company’s co-founder and CEO, Vikram Vuppala, holds an 11.6% stake in the firm.

Recently, NephroPlus expanded its footprint by acquiring seven new dialysis clinics in the Philippines. Additionally, the company is set to launch its clinics in Saudi Arabia later this year.