Shares of Shalby Ltd. dropped nearly six percent following the company’s announcement of a significant 20 percent decrease in consolidated net profit for Q1 FY25, which fell to Rs 16.6 crore from Rs 20.8 crore in the corresponding period last year.
At 2:05 PM, Shalby’s shares were trading down by 2.4 percent at Rs 303. Despite this setback, the company’s stock has risen 70 percent over the past year, outperforming the Nifty 50, which saw a 25 percent increase during the same period.
The drop in Shalby’s net profit is primarily due to a faster increase in total expenses compared to revenue growth for the quarter ending in June. The company’s revenue from operations rose by over 18 percent year-on-year to Rs 278.89 crore, up from Rs 235.48 crore. However, total expenses for the quarter increased by nearly 25 percent year-on-year to Rs 258.2 crore.
As reported by CNBC-TV18, Shalby’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) for Q1 FY25 stood at Rs 45.4 crore, down from Rs 46.2 crore in the previous year. Additionally, the EBITDA margin declined to 16.3 percent from 18.1 percent.
Shalby is a major player in India’s healthcare delivery sector, managing a network of multispecialty hospitals across the country. The company offers a wide array of tertiary and quaternary healthcare services, specializing in orthopaedics, complex joint replacements, cardiology, neurology, oncology, and renal transplants. Shalby is globally recognized for its expertise in knee replacement surgeries and ranks among the top hospitals in India for joint replacement procedures.
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