Business
Most hospitals expect double-digit revenue growth in FY2022

The hospital sector witnessed a spike in Covid-19 occupancies during Q1 FY2022 in line with the active cases in India that touched an all-time high in May 2021, peaking at more than 4x the first wave peak.
The overall occupancy levels were supported by longer average length of stay for Covid patients even as localised lockdowns resulted in a sequential decline in non-Covid occupancies to a certain extent.
The blended occupancy of both Covid and non-Covid patients for ICRA sample set stood higher at 64.2 per cent in Q1 FY2022 (against 36.9 per cent in Q1 FY2021 and 58.8 per cent in Q4 FY2021), an ICRA report said.
Most multi-speciality hospitals derived 25-30 per cent of their Q1 FY2022 footfalls and revenues from Covid-19 treatments and vaccination drives. While the Y-o-Y revenue growth of 129 per cent in Q1 FY2022 for ICRA sample set was optically high aided by the low base, the Q-o-Q revenue growth was also healthy at 15 per cent.
However, higher share of revenues from Covid treatments resulted in a 4.2 per cent Q-o-Q contraction in the average revenue per occupied bed (ARPOB) in Q1 FY2022, even as complex nature of infections and higher proportion of patients requiring critical care treatment and oxygen support aided Y-o-Y growth of 8.7 per cent in ARPOB.
Operating leverage benefits in addition to incremental revenues and margins from vaccination drives and Covid tests resulted in an improvement in OPM for ICRA sample set to 19.3 per cent in Q1 FY2022 (against -9.3 per cent in Q1 FY2021 and 18.4 per cent in Q4 FY2021), the highest witnessed by the sample set in the last few years. This was despite absence of revenues from international patients.
Says Mythri Macherla, Assistant Vice President and Sector Head, ICRA, “While both in-patient (IPD) and out-patient (OPD) footfalls declined sequentially in Q1 FY2022 on account of Covid 2.0, footfalls were far higher than Q1 FY2021, wherein hospital operations were adversely impacted on account of the nationwide lockdown. Most hospitals have witnessed sequentially higher footfalls in July and August 2021 compared to Q1 FY2022 levels.”
“To assess the on-ground sentiments and understand the outlook for FY2022, ICRA conducted a survey of its rated hospital entities. Key findings suggest that with strong performance in Q1 FY2022 and expected benefits from pent-up demand for electives, respondents expect occupancies in FY2022 to be better than FY2020 levels and ARPOB to remain range-bound in FY2022 despite higher contribution from Covid. More than 2/3rd of the survey respondents expect double-digit growth in revenues in FY2022, and OPM to revive and be higher than FY2020 levels on the back of healthy improvement in occupancy levels.”
The net debt for ICRA sample set increased by Rs 350 crore as on June 30, 2021, compared to March 31, 2021 on account of advance payments for vaccine procurement and higher pharmacy stocking of Covid medicines.
In terms of capex, many companies in the sector have gone slow on greenfield expansion in the last few years as the focus was on improving returns on existing facilities.
Players are now looking at adding bed capacity within the existing infrastructure, and some of the larger players are actively scouting for inorganic growth opportunities. However, owing to the healthy cash generation and strong liquidity position, the interest coverage ratio is projected to improve.
The Government of India and the Reserve Bank of India have taken multiple measures to support the sector, including an on-tap liquidity window, dedicated ECLGS credit lines, etc. which is likely to support liquidity of industry players.
Business
Sensex, Nifty open lower amid weak global cues post Trump tariffs

Mumbai, April 4: Indian frontline indices opened in the red on Friday following global sell-off in the equity markets in reaction to the reciprocal tariffs announced by US President Donald Trump.
At 9:23 am, Sensex was down 544 points or 0.71 per cent at 75,750 and Nifty was down 194 points or 0.82 per cent at 23,059.
Midcap and smalcap stocks witnessed selling pressure in the early trading hour. Nifty midcap 100 index was down 669 points or 1.34 per cent at 51,464 and Nifty small 100 index was down 253 points or 1.56 per cent at 16,001.
On the sectoral front, auto, IT, PSU bank, pharma, FMCG, metal, realty and energy were major laggards. Only finance services was trading with gains.
In the Sensex pack, HDFC Bank, Bajaj Finance, Bharti Airtel and M&M were top gainers. Tata Motors, Tata Steel, L&T, IndusInd Bank, Maruti Suzuki, Reliance Industries, Sun Pharma, Infosys and Tech Mahindra were the top losers.
Following the announcement of Trump tariffs, global markets experienced jitters overnight, leading to a gap-down opening indicated by the Gift Nifty.
Selling was seen in most Asian markets. Tokyo, Bangkok and Seoul were in the red.
The US markets witnessed a massive sell-off on Thursday after reciprocal tariffs were announced. The Dow closed by nearly 4 per cent down and the technology index Nasdaq down by nearly 6 per cent.
On the institutional front, foreign institutional investors (FIIs) extended their selling streak for the fourth consecutive session on April 3, offloading equities worth Rs 2,806 crore. In contrast, domestic institutional investors (DIIs) remained net buyers for the fifth consecutive day, purchasing equities worth Rs 221.47 crore.
According to market observers, on the upside, immediate resistance is seen at 23,350, followed by 23,600 for Nifty.
“A breakout beyond these levels could trigger a continuation of the uptrend, targeting the 200 DSMA in the 24,000–24,100 range. While the index may remain range-bound in the near term, stock-specific trades are offering better opportunities, and traders should focus on individual names for potential gains,” said Sameet Chavan, Head Research, Technical and Derivative – Angel One.
National
Amit Shah to visit J&K for three days from April 6, hold security review meets

Jammu, April 4: Union Home Minister Amit Shah will be on a three-day visit to Jammu and Kashmir from April 6 to hold security review meetings and inaugurate development projects.
The Home Minister will chair two important security review meetings and will also virtually inaugurate some developmental projects.
HM Shah, as per sources, will hold a meeting with the BJP MLAs in Jammu on April 6. He will take feedback from the BJP MLAs, especially about the budget session of the Legislative Assembly, which will resume on April 7 after a 12-day break. The session is scheduled to adjourn sine die on April 9.
The performance of the BJP MLAs in the Assembly during the first budget session of the present government will come up for review during the meeting.
He will review the political situation in the union territory with the party MLAs. Shah will be in Jammu till the afternoon of April 7 and then proceed to Srinagar. He will return to Delhi on April 8. Minister of State (PMO) Dr Jitendra Singh will join the home minister in Jammu.
Amit Shah is scheduled to undertake a tour of the International Border in Jammu. He will meet the family members of police martyrs.
Two terrorists were killed, and four police personnel were martyred in the Kathua encounter last week.
In Srinagar, the home minister will chair two separate security review meetings of Unified Headquarters and the annual pilgrimage of Shri Amarnath Yatra.
He will be dedicating a number of multi-crore projects to the people of the UT through virtual inauguration and a foundation stone laying ceremony.
During Shah’s Unified Headquarters meeting, a strategy for ensuring zero infiltration and the elimination of terrorists from the mountains and forests of the Jammu region besides the Kashmir Valley will be reviewed, sources said.
Union Home Secretary Govind Mohan, MHA officials dealing with Jammu and Kashmir, heads of Intelligence agencies and paramilitary forces will also join Amit Shah in security review meetings.
The second security review meeting will be held exclusively for security and other arrangements for the annual Shri Amarnath Yatra, scheduled to start on July 3 and end on August 9.
The Home Minister will also inaugurate and lay the foundation stone of multi-crore projects virtually from Srinagar.
Chief Minister Omar Abdullah will also be joining the function for the dedication of developmental projects by HM Shah.
The CM is likely to have a separate meeting with the Home Minister.
Business
Stock market ends lower as investors take cautious approach on US tariffs

Mumbai, April 3: The Indian stock market closed lower on Thursday as investors remained cautious following US President Donald Trump’s announcement of new tariffs.
The new tariff structure includes a 10 per cent tax on all US imports, with higher tariffs on countries with a trade surplus. India will now face a 27 per cent tariff.
The Sensex fell 322.08 points, or 0.42 per cent, to close at 76,295.36. During the day, the index fluctuated between an intraday high of 76,493.74 and a low of 75,807.55.
The Nifty also ended lower, down 82.25 points, or 0.35 per cent, at 23,250.10.
“The primary catalyst for today’s decline was deteriorating global sentiment, exacerbated by US President Trump’s announcement of a 26 per cent reciprocal tariff on Indian imports, which prompted a cautious stance among investors,” said Sundar Kewat of Ashika Institutional Equity.
Tech stocks led the losses, with TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors declining by up to 4.02 per cent.
On the other hand, Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints were among the top gainers, rising as much as 4.57 per cent.
The IT sector was the worst performer, with the Nifty IT index dropping 4.21 per cent, dragged down by Persistent Systems, Coforge, TCS, and Mphasis. Auto, oil & gas, and realty stocks also struggled.
However, pharma stocks performed well, with the Nifty Pharma index climbing 2.25 per cent. Banking, healthcare, FMCG, and consumer durables stocks also saw gains, rising up to 1.94 per cent.
Despite the overall market decline, smallcap stocks outperformed, as the Nifty Smallcap100 index gained 0.58 per cent.
Market analysts stated that investors are expected to remain watchful of global developments and their impact on market trends.
“The domestic market initially showed signs of recovery but ended with modest losses after the announcement of a relatively lower 26 per cent tariff on US imports,” said Vinod Nair of Geojit Investments Limited.
“Although the tariff presents short-term challenges, India’s economic resilience and bilateral trade agreement may help mitigate the overall impact,” he stated.
The rupee ended flat but traded in a volatile range between 85.75 and 85.35, as markets reacted to Trump’s reciprocal tariff policy.
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