Stock Crash: Healthcare service provider tanks 11% after results, falls below IPO price

Shares of GPT Healthcare, a healthcare services provider based out of Kolkata, are down over 10% on Thursday, August 7, in response to its June quarter results, that were reported after market hours on Wednesday.The company’s revenue increased by 9.5% from last year to ₹107.1 crore and when compared to the March quarter, the topline grew by 5.6%.

Net profit for the period declined by 23% from last year and 41% from the previous quarter to ₹7.7 crore.

EBITDA margin for the quarter narrowed to 16.2% from 18.4% last year and 20.4% from the previous quarter.The company in a press release said that all of its existing four hospitals are doing well and that they remain committed to becoming a 1,000-bed chain within the next 2-3 years. As part of this, it has already commissioned a 158-bed multi-specialty hospital in Raipur and has already signed an MoU for a hospital in Jamshedpur with a planned capacity of 150 beds at a cost of nearly ₹74 crore.

The planned hospital in Jamshedpur is likely to be commissioned by the end of financial year 2027.

Shares of GPT Healthcare are trading 11% lower on Thursday at ₹159.11, with this fall, the stock has declined below its IPO price of ₹186. This is the third straight day of losses for the stock.