One of the small-cap stocks engaged in provides healthcare-focused technology-enabled solutions and services primarily to U.S.-based clients in the payer and provider segments. The stock has hit 10 percent after reporting September quarter results in 2024. The company’s revenue increased by 20.65 percent YOY to Rs. 1,325.05 crore, and net profit increased by 426.42 percent QOQ to Rs. 117.34 crore.
Stock movement:
After announcing its quarterly results, Sagility India Limited‘s stock surged by 10 percent, reaching an upper circuit of Rs. 31.52 per share on Monday, up from its previous closing price of Rs. 28.66 per share. As of November 26, 2024, the company’s market capitalization is approximately Rs. 14,694.69 crore.
Q2 FY25 Result Walkthrough:
Coming into the quarterly results of Sagility India Limited, the company’s consolidated revenue from operations increased by 20.65 percent YOY, from Rs. 1,094.10 crore in Q2 FY24 to Rs. 1,325.05 crore in Q2 FY25, and grew by 8.32 percent QoQ from Rs. 1,223.33 crore in Q1 FY25.
Further, the company’s EBIT margin has increased by 29% YOY, from Rs. 234 crore in Q2 FY24 to Rs. 301 crore in Q2 FY25.
In Q2 FY25, Sagility India Limited’s consolidated net profit slightly increased by 235.64 percent YOY, reaching Rs. 117.34 crore compared to Rs. 34.96 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 426.42 percent, from Rs. 22.29 crore.
The basic earnings per share increased by 400 percent and stood at Rs 0.25 as against Rs 0.05 recorded in the previous quarter FY25.
In terms of return ratios, Sagility India Limited’s share ROE and ROCE are currently at 3.60 percent and 4.71 percent, respectively. Sagility India Limited has a debt-to-equity ratio of 0.20x.
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Service Offerings:
Sagility India Limited offers personalized services to optimize operations for both payers and providers in the healthcare industry. For payers, its expertise includes claims management for accurate adjudication, payment integrity to prevent overpayments, and provider data management for seamless network operations.
For providers, Sagility delivers comprehensive revenue cycle management (RCM), ensuring efficient financial workflows and enhancing patient engagement to support timely collections and improved satisfaction.
Clientele:
Sagility India Limited serves a robust client base, including 5 of the top 10 U.S. health insurers like UnitedHealthcare and Cigna and renowned healthcare providers such as Johns Hopkins Hospital and Cleveland Clinic. Its partnerships highlight its expertise in delivering transformative solutions across the healthcare ecosystem, benefiting insurers and providers alike.
IPO Details:
Sagility India Limited came for an Initial Public Offering (IPO) valued at Rs. 2,106.60 crores, scheduled from November 5 to 7, 2024. The IPO consists of an entirely offer-for-sale of 70.22 lakh shares, priced between Rs. 28 to 30 per share.
Shareholding pattern:
In September 2024, Sagility India Limited had a majority stake held by the promoters at 82.39 percent, foreign institutional investors at 6.90 percent, domestic institutional investors at 6.31 percent, and the public at 4.40 percent.
Company Overview:
Sagility India Limited was formerly known as Berkmeer India Pvt. Ltd. and is a healthcare-focused technology and services provider based in Bangalore, India. The company was established in July 2021 and specializes in delivering technology-enabled solutions primarily to U.S.-based clients in the healthcare sector, specifically targeting payer and provider segments.
Written By – Nikhil Naik
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