Any current/future new fundraising through debt or equity?

The company planned to raise funds through preferential shares but has not closed this yet. Currently, acquisitions like Saarathi Healthcare are being funded through internal accruals and working capital limits. No equity funds from preferential allotments or convertible warrants have been received or utilized so far. For capex related to expansion and diversification, no additional capex or funding is presently required as enough capital has been pumped in earlier. Hospital division funding will come from internal business cash flows; no external fund infusion is required at this moment. The

Any current/future capex/capital investment/strategic investment?

Current capital investment: QMS is acquiring a 51% stake in Saarathi Healthcare Private Limited with a payout of around INR18 crores, funded through internal accruals and working capital limits (Page 8). No significant new capex required for current business models as enough funding has already been pumped into the CAMS model (Page 8). The hospital division expansion will be funded from the company’s own working capital; no external funding needed at this moment (Page 8). Plans for manufacturing point-of-care products and enhancing marketing and distribution are in pipeline, indicating potenti

Future growth expectations in sales/revenue/volumes?

QMS Medical Allied Services Limited anticipates a 10%-15% annual growth over the next five years, aiming for systematic and sustainable expansion. Target to grow the service model to INR100 crores revenue in three years. Aim to increase QMS business revenue to INR300 crores+ within three years. Growth drivers include devices, point-of-care products, and patient service programs. Expansion plans in patient service programs by increasing workforce, geographic reach, and client coverage. Focus on introducing diversified and innovative point-of-care product offerings. Emphasis on leveraging online

Future growth expectations in earnings/operating earnings/profits/EPS?

QMS Medical Allied Services expects a 45% growth this year in their patient service and device segments. EBITDA surged by 55.83% in FY24, with significant margin expansion, indicating operational efficiency improvement. PAT increased by 41.14% to INR 9 crores with PAT margin growth of 126 basis points in FY24. Earnings per share (EPS) rose by 29.23% to INR 5.04 per share in FY24. Management anticipates returning to EBITDA margins around 16-17% in upcoming quarters after some recent dips. Growth drivers include expansions in point-of-care devices, patient service programs, and new acq

Current/ Expected Orderbook/ Pending Orders?

The company has been consistently receiving orders, particularly from pharma companies in its primary segment. They have conducted over 25,000 camps per year, indicating a steady inflow of orders related to patient service programs. Sales for Q-Devices products are showing good traction with repeat orders from customers. Ongoing collaborations and pipeline activities, especially in manufacturing and point-of-care devices, suggest future order inflows. There was a billings slowdown due to new government guidelines affecting margins temporarily, but business is normalizing now. The acquisition o

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QMS Medical Allied Services LtdQ1 FY24Healthcare Equipment & Supplies

QMS Medical Allied Services Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹95.3P/E: 14.8Market Cap: ₹174 CrSector: Healthcare Equipment & Supplies

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→QMS Medical Allied Services Limited anticipates a 10%-15% annual growth over the next five years, aiming for systematic and sustainable expansion.
→Target to grow the service model to INR100 crores revenue in three years.
→Aim to increase QMS business revenue to INR300 crores+ within three years.
→Growth drivers include devices, point-of-care products, and patient service programs.
→Expansion plans in patient service programs by increasing workforce, geographic reach, and client coverage.
→Focus on introducing diversified and innovative point-of-care product offerings.
→Emphasis on leveraging online platforms, which have already crossed INR10 crores.
→B2B business segment recorded nearly INR50 crores, showing strong potential.
→Commitment to broadening direct-to-consumer presence, addressing chronic care management solutions.
→Collaboration and manufacturing tie-ups for point-of-care products are underway to support growth.

Margin guidance

Category 3

→QMS Medical Allied Services expects a 45% growth this year in their patient service and device segments.
→EBITDA surged by 55.83% in FY24, with significant margin expansion, indicating operational efficiency improvement.
→PAT increased by 41.14% to INR 9 crores with PAT margin growth of 126 basis points in FY24.
→Earnings per share (EPS) rose by 29.23% to INR 5.04 per share in FY24.
→Management anticipates returning to EBITDA margins around 16-17% in upcoming quarters after some recent dips.
→Growth drivers include expansions in point-of-care devices, patient service programs, and new acquisitions like Saarathi (51% stake).
→Long-term revenue growth target: aiming to grow QMS business to INR 300 crores and service model to INR 100 crores in the next 3 years.
→The company is focused on innovative collaborations and expanding healthcare service offerings for sustainable profitability.

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Fundraise plans

Yes

→The company planned to raise funds through preferential shares but has not closed this yet.
→Currently, acquisitions like Saarathi Healthcare are being funded through internal accruals and working capital limits.
→No equity funds from preferential allotments or convertible warrants have been received or utilized so far.
→For capex related to expansion and diversification, no additional capex or funding is presently required as enough capital has been pumped in earlier.
→Hospital division funding will come from internal business cash flows; no external fund infusion is required at this moment.
→The company remains open to fundraising but is prioritizing current internal resources to complete ongoing acquisitions and projects before considering new debt or equity fundraisers.

Order book

Yes

→The company has been consistently receiving orders, particularly from pharma companies in its primary segment.
→They have conducted over 25,000 camps per year, indicating a steady inflow of orders related to patient service programs.
→Sales for Q-Devices products are showing good traction with repeat orders from customers.
→Ongoing collaborations and pipeline activities, especially in manufacturing and point-of-care devices, suggest future order inflows.
→There was a billings slowdown due to new government guidelines affecting margins temporarily, but business is normalizing now.
→The acquisition of Saarathi is expected to contribute to revenues starting from Q2 FY25, potentially increasing the order book.
→The focus on expanding patient service programs and point-of-care products is expected to drive order growth steadily.

Capex plans

Yes

→Current capital investment: QMS is acquiring a 51% stake in Saarathi Healthcare Private Limited with a payout of around INR18 crores, funded through internal accruals and working capital limits (Page 8).
→No significant new capex required for current business models as enough funding has already been pumped into the CAMS model (Page 8).
→The hospital division expansion will be funded from the company’s own working capital; no external funding needed at this moment (Page 8).
→Plans for manufacturing point-of-care products and enhancing marketing and distribution are in pipeline, indicating potential future investments, though nothing concrete yet besides Saarthi (Page 13).
→Preferential allotment fundraise was announced but not yet closed; current acquisition executed without those funds (Page 8).

How does QMS Medical Allied Services Ltd rank vs peers in Healthcare Equipment & Supplies?

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