Pristyn Care, one of the most significant surgery-focused hospital chains in India, has recorded a spectacular revenue growth of 33%, with revenues crossing ₹601 crore for the fiscal year ending March 2024. The company has been expanding its operations while sustaining steady losses in the same period. Backed by investors like Tiger Global, Pristyn Care’s performance indicates that it has a solid business model in the very competitive healthcare sector.
PC: The Financial Express
According to the consolidated financial statements filed with the Registrar of Companies, Pristyn Care’s revenue from operations rose by 32.7%, which stood at ₹453 crore in FY23 while increasing to ₹601 crore in FY24. Pristyn Care operates in a full-stack business model, having its own clinics and using third-party hospital infrastructure for surgeries. With presence in over 30 cities, Pristyn Care oversees 100 clinics and partners with over 200 partner hospitals; hence, it is capable of treating an enormous number of patients.
The company’s income from healthcare services constituted 57.5% of total operating revenue, amounting to ₹346 crore. Additionally, revenue from D2C products, particularly its brand beatXp, surged 2.5 times to ₹267 crore in FY24. Pristyn Care also generated ₹31 crore from non-operating activities, bringing its overall revenue to ₹632 crore, compared to ₹494 crore in FY23.
Looking ahead, Pristyn Care expects 35% growth in its surgery business for FY25, while EBITDA levels are expected to improve by 60%. The company is also gearing up for an IPO within the next three years, indicating its intent to scale its operations further and increase its market presence.
Although revenue is growing, the expenses of Pristyn Care have been managed in recent times. D2C products accounted for 25% of total expenses. Device sales pushed up costs from ₹75 crore FY23 to ₹253 crore in FY24. But at least, the company was able to manage its advertisement expenditure reducing it by 21% at ₹183 crore and that employee benefit cost was lowered to 3.5% at ₹192 crore.
Overall, total expenses have increased to ₹1,014 crore in FY24 from ₹877 crore in FY23. This increase has been mainly because of operational costs, which include doctor fees, legal costs, travel, consumables, and other overheads.
Pristyn Care has managed to keep its losses relatively stable by scaling while keeping costs under control. The company reported a flat loss of ₹381 crore for FY24, which was marginally lower than ₹383 crore in FY23. This means that the company spent ₹1.69 to earn every rupee of operating revenue, which shows the difficulty in achieving profitability in the healthcare sector.
Revenue growth by Pristyn Care during FY24 is remarkable in terms of its standing within the Indian healthcare market. The firm, indeed, has expanded service offerings but remained prudent on its loss front. With ambitious plans for the future, which include significant projections for FY25 and an anticipated IPO, Pristyn Care is well-positioned to reaffirm its standing at the forefront of the evolving healthcare landscape. Navigating these complexities will thus rely on the importance of operational efficiency and innovative service delivery for long-term success.
