Sagility India: US insurance clients or payers contribute over 90% to the company’s revenue

 

  • Sagility India: US insurance clients or payers contribute over 90% to the company’s revenue
  • Sagility India, which provides business process management services to the healthcare sector,
  • The company provides services to the US based health insurers and hospitals.
  • While it operates at a higher margin, it faces risks from single-sector and single-market exposure

  • It operates at a higher margin given its pure-play specialised offerings focused on a single vertical. However, it also raises risks of single sector and single market exposure
  • It caters to payers including health insurers, which reimburse costs of health services and providers such as hospitals, physicians, diagnostic and medical devices companies in the US.
  • Sagility India offers services such as claims management, premium billing, provider data management, financial clearance, and accounts receivable follow up among others. The company has global delivery centres in India, Philippines, the US, Jamaica, and Colombia. 
  • The insurance clients or payers contribute over 90% to the company’s revenue while the remaining comes from providers. 
  • The top five clients accounted for 79% of the revenue in FY24.
  • Revenue grew by five times to Rs 4,753.6 crore between FY22 and FY24. The company reported net profit of Rs 228.3 crore in FY24 compared with a net loss of Rs 4.7 crore in FY22. 
  • The operating margin before depreciation and amortisation (EBITDA margin) was between 23% and 25% during the period.

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