The second quarter of the financial year is also expected to be a loss-making one for Narayana Hrudayalaya, said Viren Shetty, COO of the company, after the firm reported a weak set of numbers in Q1.
The company's revenues were down 49 percent while it saw an EBITDA loss of Rs 83 crore in Q1. However, things are now picking up, said Shetty.
“Occupancy levels have improved. What we saw in the first quarter was that Mumbai and Delhi, being the most impacted cities in the country, had extremely low footfalls. But both those cities are now past their peak of infection. We think that daily case count of new COVID cases has decreased and so our occupancy levels have picked up," Shetty elaborated.
He, however, said that Q2 is unlikely to be profitable as the company is likely to borrow anywhere between Rs 20 crore and Rs 25 crore a month in the quarter.
“We got into this pandemic with a pretty strong cash position, we had about Rs 100 crore in the bank and enough leverage. We did not really have to borrow in Q1. This quarter will see some amount of borrowings, we would say in the run rate of anywhere from Rs 20-25 crore a month," said Shetty.
Shetty added that post Q2, there will be a lot more confidence about a recovery.