Pristyn Care Reports Significant Revenue Growth for FY24
Pristyn Care, a hospital chain dedicated to surgical services, achieved over Rs 600 crore in revenue for the fiscal year ending March 2024. During its expansion, the Tiger Global-backed company managed to maintain consistent losses throughout this period.
According to the consolidated financial statements obtained from the Registrar of Companies, Pristyn Care’s revenue from operations rose by 32.7%, reaching Rs 601 crore in FY24 compared to Rs 453 crore in FY23.
Business Model and Operational Footprint
The company employs a hybrid model, establishing its own clinics while also leveraging third-party hospital infrastructure to deliver surgical procedures. Presently, Pristyn Care claims to operate in more than 40 cities, managing 100 clinics and collaborating with over 350 partner hospitals to cater to its patients.
Revenue Breakdown
- Healthcare Services Sales: Contributed 55.24% of the total operating revenue, amounting to Rs 332 crore in FY24.
- Medical and Healthcare Products: Sales escalated by 2.5 times to Rs 267 crore in the prior fiscal year.
- Non-Operating Income: The firm added Rs 31 crore from non-operating activities, leading to a total revenue of Rs 632 crore in FY24, an increase from Rs 494 crore in FY23.
Expenditure Highlights
In FY24, medical device procurement represented 26% of Pristyn Care’s total expenses. This surge in device sales resulted in procurement costs rising to Rs 264 crore in FY24, up from Rs 75 crore in FY23.
- Advertising Costs: Reduced by 21% to Rs 183 crore.
- Employee Benefits: Decreased by 3.5% to Rs 192 crore.
- Total Expenditure: Overall costs escalated to Rs 1,014 crore in FY24, compared to Rs 877 crore in FY23, driven by increased expenses related to surgeries, doctor fees, legal fees, travel, consumables, and other overheads.
Workforce and Profitability Strategy
At the close of FY24, Pristyn Care, led by Harsimarbir Singh, reduced its workforce by 7% as part of its strategy to achieve profitability in anticipation of an initial public offering (IPO) in the near future.
The company’s 32% revenue growth, coupled with controlled spending on advertising and employee benefits, resulted in a minimal loss of Rs 381 crore in FY24, slightly down from Rs 383 crore in FY23. On a unit basis, the company spent Rs 1.69 to generate each rupee in FY24.
Future Projections
For the upcoming fiscal year, Pristyn Care estimates a 35% growth in its surgical business alongside a 60% enhancement at the EBITDA level. Additionally, the company plans to initiate an IPO within the next three years.
Importantly, Pristyn Care achieved substantial growth without raising external capital in the last three years. In December 2021, the company secured $85 million from Peak XV Partners and Tiger Global, attaining unicorn status. Subsequently, in June 2022, it acquired Lybrate, a venture supported by Ratan Tata and Tiger Global.