Religare Health Trust

Religare Health Trust (RHT): 2QFY14 distributable income of $11.7m and DPU of 1.48cts were in line with its IPO projection. However, gross revenue of $26.5m and Net Service and Hospital Income of $15.4m were 3.1% and 7% respectively, lower than projected, mainly due to the depreciation of the Indian rupee against the SGD. When compared against the projections in INR terms, gross revenue was above projection by 3.3%, while net service and hospital income was slightly below due to increased depreciation charges. Overall portfolio of 13 clinical establishments maintains strong occupancy of 86%, as expansion works led to increase in bed capacity of 551 beds. RHT maintains a positive outlook on the largely defensive healthcare sector in India despite the ongoing volatility of the economy. On the longer term, prospects for the sector remain promising due to a confluence of factors including a growing demand for higher quality healthcare services driven by rising affluence and increasing prevalence of chronic diseases.