By Sarah Townsend
Prasanth Manghat forecasts strong year for Abu Dhabi-headquartered healthcare group
Abu Dhabi-based NMC Health expects another solid year of growth in 2017, its new CEO Prasanth Manghat said in his first full-length interview in the job.
Manghat, the longstanding deputy CEO of Abu Dhabi-based healthcare provider NMC Health, replaced founder BR Shetty as CEO in March.
At the same time, the group announced a 38 percent jump in revenues for 2016 to $1.22bn, and a 64 percent hike in net profit attributable to parent to $132.7m.
Manghat told Arabian Business NMC is on track to report an even stronger performance for 2017, with expected revenues of $1.6 billion by year end.
“Our guidance to the market is that we will do $1.6bn of revenues and $350m of EBITDA [earnings before interest, tax, depreciation and amortisation, which last year was $246.1m],” he said.
“Even after six months our outlook is very positive. Based on last year’s figures we are looking at 25 percent revenue growth and 50 percent growth in [gross] profit for 2017.”
Manghat attributed his growth projections on “the macroeconomic fundamentals of the UAE – population growth, new suburbs, the introduction of mandatory health insurance”, as well as the NMC portfolio itself.
He said the group plans to continue to reap returns from flagship older assets – such as the 43-year-old NMC Speciality Hospital in Abu Dhabi, which accounts for more than 1.1 million of NMC’s 4.3 million annual patient footfall – to invest in emerging opportunities and new assets.
He said: “I will definitely not do a u-turn on Dr Shetty’s business models. I’ve been with NMC Health for 14 years and an integral part of the group’s milestones during that time – from acquiring new assets and entering new markets, to launching new verticals and going public. I am as positive about this year as I was about last.”
NMC Health was established in Abu Dhabi in 1975 and operates a network of more than 45 hospitals and other care facilities across eight countries including the GCC.
Manghat is credited with spearheading NMC’s initial public offering (IPO) on the London Stock Exchange in 2012 – the first time a UAE company listed on the LSE.
To read the full interview with Prasanth Manghat, click here.