Lanka Hospitals Corporation secures first place in K Seeds Investments’ ranking report

Thursday, 4 July 2024 03:14 - - {{hitsCtrl.values.hits}}

K Seeds Investments Ltd. identified the Lanka Hospitals Corporation PLC as the best performing hospital among the six listed hospital companies in Sri Lanka through a ranking carried out based on their financial performance for the year 2023/24.

All six listed hospital companies were assessed on net profit margin, EBIT margin, return on equity, return on assets, debt to capital ratio, current ratio, revenue growth, and net profit growth.

The ranking evaluates the financial performance of the listed hospitals to provide useful and timely information to demonstrate their financial strength. The hospitals are ranked based on a number of key performance indicators, which are given an equal weightage.

K Seeds Investments, which also ranks listed finance companies and listed commercial banks, said hospital rankings help gain valuable insights by analysing the summarised financial information it has presented, hence facilitating prudent decision-making for investment purposes or other requirements.

Sri Lanka’s healthcare industry is dominated by the public sector due to the Government’s policy of providing free healthcare for all. A major portion of the market is being catered to by public hospitals. Around 25% of the market is open for private hospitals to compete in.

However, the increasing income levels of the country, the growing ageing population, and the prevalence of non-communicable diseases (NCDs) are likely to increase demand in the long run.

During the past three years, the healthcare industry had the overwhelming task of protecting the staff and providing patient care at the same time. More than 1,700 medical officers have left the country over the past two years. State hospitals faced massive disruptions due to strikes organised by trade unions demanding to provide the Disturbance, Availability and Transport (DAT) allowance.

Throughout this period, the hospital sector in Sri Lanka demonstrated an admirable degree of adaptability and resilience, despite facing numerous challenges stemming from the economic crisis and its widespread repercussions.

However, despite all these factors, the Lanka Hospitals Corporation PLC managed to maintain their top rank in the series of ranking reports released by K Seeds Investments on the hospital sector of Sri Lanka.

K Seeds Investments is a boutique investment banking firm, specialising in mergers and acquisitions, balance sheet restructuring, equity/debt placements, treasury management, corporate restructuring, and talent management.