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Krishna Institute of Medical Sciences (KIMS) added 1.63% to Rs 545.75 after the company announced the signing of an operations and management agreement (O&M) with Splendid Hospitals, Hyderabad, Telangana.

KIMS edges higher after signing O&M deal with Splendid Hospitals

20-Feb-2025, 02:02

The agreement is for an initial term of 7 years with an extension for a further period of 3 years on an exclusive basis.

According to the terms and conditions under of this agreement, KIMS would run, manage, operate, direct and control the hospital and provide the medical services at the hospital.

Splendid Hospitals is in the process of constructing a 150-bed hospital, under the name Splendid Hospital, with a total floor area of 1,60,000 square feet. The hospital has the potential due to the location and demand for hospital services and has the capacity to expand to over 200 beds and will be equipped with the latest medical infrastructure, medical and diagnostic equipment, and multiple operation theatres.

The hospital is expected to commence operations in June 2025. To ensure the hospital operates efficiently and effectively, Splendid requires the services of a specialized and professional team of experts.

Therefore, under the proposed O&M terms, Splendid intends to engage KIMS as the exclusive operator to manage, run, operate, direct, and control the hospital operations, and to provide or facilitate the provision of the medical services as outlined in the relevant schedule of the agreement.

In consideration for the medical services fees and in accordance with the terms of this Agreement, KIMS is entitled to receive revenue fee of 9% (nine percent) of the total net revenue.

Headquartered in Hyderabad, Krishna Institute of Medical Sciences (KIMS Hospitals) is one of the largest corporate healthcare groups in Telangana, Andhra Pradesh and Mahrashtra, providing multi-disciplinary integrated healthcare services, with a focus on tertiary and quaternary healthcare at affordable cost.

The company's consolidated net profit jumped 23.5% to Rs 88.70 crore in Q3 FY25 as compared with Rs 71.84 crore in Q3 FY24. Net sales increased 27.5% YoY to Rs 772.40 crore in Q3 FY25.