ICRA reaffirms ratings of Indraprastha Medical Corp; maintains 'stable' outlook

The agency has also affirmed the company's short term rating at '[ICRA] A1+'.

ICRA stated that the rating action factors in Indraprastha Medical Corporation Limited (IMCL)'s established presence and strong market position in the NCR region, its healthy operating metrics and its robust financial profile.

The ratings also factor in IMCL's revenue diversification across specialities, including oncology, neurology, cardiology and nephrology, among others.

The financial risk profile remains comfortable as reflected by minimal gearing, robust debt protection indicators and a strong liquidity profile.

Further, the ratings factor in the strong parentage of Apollo Hospitals Enterprise Limited (AHEL) along with its promoters, holding a 25% stake in IMCL. The entity has significant operational, financial and managerial linkages with AHEL. Apollo Hospitals is among the leading healthcare players, operating one of the largest hospital chains in the country.

However, the ratings remain constrained by the geographical and asset concentration risks, as IMCL's operations are concentrated across two hospitals in the National Capital Region (NCR). Like other entities in the sector, IMCL remains exposed to regulatory risks, with previous restrictions imposed by various authorities.

The ratings also factor in the competitive pressures and the necessity to retain medical talent in an ever-evolving market.

Incorporated in 1988 as a JV between Apollo Hospitals Enterprise (AHEL) and the Delhi Government, Indraprastha Medical Corporation (IMCL) is a 749-bedded, super speciality tertiary care hospital in New Delhi and Noida.

The scrip gained 3.09% to currently trade at Rs 415.30 on the BSE.

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