| Asarfi Hospital Limited | ||||
| 'Crisil BBB-/Stable' assigned to Bank Debt | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has assigned its ‘Crisil BBB-/Stable’ rating to the bank facilities of Asarfi Hospital Limited (AHL).
The rating reflects AHL's established market position and extensive industry experience of the promoters, healthy financial risk profile and sound operating efficiencies. These strengths are partially offset by its geographic concentration in revenue and working capital intensive operations. |
Analytical Approach For arriving at the ratings, Crisil Ratings has combined the business and financial risk profile of AHL with its wholly owned subsidiary Asarfi Educational Foundation (AEF).
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation |
Key Rating Drivers - Strengths Established market position & extensive industry experience of the promoters: AHL has strong presence in Dhanbad, Jharkhand, owing to robust infrastructure facilities and affordable pricing. The hospital is first and only in the Dhanbad region to offer advanced medical care with full-fledged High Dependency Unit, Emergency Department, Outpatient Consultation, CCU, ICU, NICU, SICU, Labor Room, Neurosurgery and a world class Cardiac unit, all under one roof. The hospital has a moderate occupancy of 56-60% in the last four fiscals. During Q1 FY 2026, occupancy remained at 60% (including both Cancer center and super-specialty hospital) and was expected to improve over the medium term.
In 2024, AHL’s Cancer unit was started, which is now the first dedicated comprehensive cancer care hospital under one roof and just 1 out of 3 cancer hospital in the state of Jharkhand. Further, it also benefits from the promoters' experience of over two decades, their strong understanding of market dynamics, and healthy relations with customers and suppliers and will continue to support the business.
Healthy financial risk profile and moderate operating efficiency: AHL’s capital structure has been at healthy level due to lower reliance on external funds yielding gearing of and low total outside liabilities to adj tangible networth (TOL/ANW) of 1.02 times and 1.02 times for year ending on 31st March 2025. AHL’s debt protection measures have also been at healthy level due to leverage and healthy profitability. The interest coverage and net cash accrual to total debt (NCATD) ratio are at 6.90 times and 0.49 times for fiscal 2025. AHL’s debt protection measures are expected to remain at similar level over medium term supported by operating margin at around 20% in FY25. |
Key Rating Drivers - Weaknesses Geographic concentration in revenue: Revenue is concentrated in Dhanbad, Jharkhand. The geographical concentration restricts the hospital's customer base and renders it vulnerable to the dynamics of a single market. Operations are localised, compared with other corporate hospitals. This is unlike other major players who have presence across India and abroad and therefore command strong brand loyalty across country and overseas. The image-sensitive nature of the healthcare industry further aggravates the risks related to being in a single location. Hence, business risk profile will remain exposed to the risk of geographical concentration in revenue and intensifying competition over the medium term.
Working capital intensive operations: Gross current assets were at 117 - 196 days over the three fiscals ended March 31, 2025. Its intensive working capital management is reflected in its gross current assets (GCA) and it arises from its high debtor over 130 days. This is on account of revenue generated from PSUs, or government departments Central /State Govt Schemes. Around 50-55% revenue is derived from the mentioned sectors which led to higher outstanding debtors more than six months. Crisil Ratings noted that there was clerical error in debtor ageing in AR25, which has been acknowledged and rectified by the management. For the same, corporate announcement has been made on BSE on 20/09/2025, reflecting the actual debtor ageing as of AR25. Debtors more than six months have also improved from around Rs 9 crore to be around Rs 4.8 crore as of Aug-25 due to lower in contribution from PSU / Govt Health Schemes and improvement in debtors especially debtors more than six will remain key monitorable over the medium term |
Liquidity Adequate Bank limit utilisation is moderate at around 67.12 percent for the past twelve months ended July 2025. Cash accruals are expected to be over Rs 23 crore which are sufficient against term debt obligation of Rs 5.8 crore over the medium term.
Current ratio was healthy at 1.43 times on March31, 2025. Moderate cash and bank balance of around Rs 14 crore as on March 31, 2025. Low gearing and moderate net worth support its financial flexibility and provides the financial cushion available in case of any adverse conditions or downturn in the business. |
Outlook Stable Crisil Ratings believes AHL will continue to benefit from the extensive experience of its promoter, and established relationships with clients. |
Rating Sensitivity Factors Upward factors
Downward factors
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About the Company AHL was incorporated in 2005. AHL is operating a 250-bedded tertiary super- specialty hospital in Dhanbad, Jharkhand in the name of “Asarfi Hospital”. The hospital is having super specialty departments such as Neurosciences, Cardiology, Obstetrics & Gynaecology, Neonatology & Paediatrics, Urology, Orthopaedics, Gastroenterology, Burn & Plastic Surgery, Oncology etc. AHL also operates a 65-bed cancer unit “Asarfi Cancer Institute”. AHL was listed on SME platform of BSE in July 2023.
AHL is managed by Mr. Nayan Prakash Singh, Mr. Harendra Singh, Mr. Udai Pratap Singh, Ms. Madhuri Singh and Ms. Nitu Singh. |
Key Financial Indicators
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Status of non cooperation with previous CRA AHL had previously not cooperated with CARE Ratings Limited which had published its ratings as an issuer not cooperating vide a release dated September 26, 2025. The reason provided by CARE was non furnishing of information by AHL for monitoring the ratings. |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of Entities Consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||
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Criteria Details
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