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00:00I'm now being joined by Shanay Shah, who's the president, to talk more about the numbers.
00:04Welcome, Shanay.
00:05Thanks for joining us on NTV Profit.
00:08Hi, good morning.
00:09Thank you for having me.
00:12Pleasure's all ours.
00:13Let's start off with the numbers.
00:15While revenue and net profit we saw in both of these things advancing, there was a bit
00:20of a weakness on net profit and margin front.
00:23Do kind of tell us how is this quarter for us, for Shalby, of course, and what do you
00:29see it for the next three quarters for FI25 as a whole?
00:35Sure.
00:36So from the company's perspective, the results have been in line.
00:39So there are three parts to it.
00:41One is, of course, if you look at the overall numbers, then we have grown at a consolidated
00:46level at a north of 20% kind of growth rate.
00:50So happy with that.
00:52The EBITDA growth has been north of 15%, you know.
00:57And in this particular quarter, we had not taken the deferred tax asset for our Inflant
01:05business.
01:06And had we taken that, and we had taken it in the same quarter last year, the PAT would
01:12have been the absolute number, would have been pretty much along the same line.
01:16So it is basically because of that accounting that we see that the PAT has dropped a little
01:23bit.
01:24Otherwise, the business has grown and the inpatient count on the hospital side have
01:28grown more than 15%.
01:30The outpatient count have grown more than 15%.
01:33The new daily acquisition that we have made has integrated well, and it is near EBITDA
01:40break even as we speak.
01:42So things are on the right track from the company's perspective.
01:46Hi, Shanae Varsha here.
01:49So if you see, we've noticed that EBITDA margin for the company is down at 16% compared to
01:5418% last year.
01:56So can you explain the reasons for the same?
01:58And where do you see this margin?
02:00Because I understand that we also had margins of around 22%, you know, in one of the quarters.
02:08Well, you know, I think if you look at the standalone numbers, you know, the standalone
02:13numbers, which is everything except Delhi and the implant business, we are at a 24%
02:20EBITDA margin.
02:21So the core hospital business, apart from the last two acquisitions, has done very well
02:28for us.
02:29The other two businesses, which is the implant business, as well as, you know, the Delhi
02:33hospital business, have been relatively recent.
02:37We have broken even on the EBITDA level on both of these acquisitions.
02:43However, what has happened is that because of depreciation and finance cost, you see
02:48that the PBT levels have gone down, which is why you see overall that the margins have
02:54dropped because, you know, the implant and the Delhi business have added to the top line,
02:59but not meaningfully to the EBITDA.
03:00And that's why you see the margin has gone down.
03:03But if you look at the consolidated level, the EBITDA levels, as in, you know, which
03:07were at a certain level in quarter 1 FY24, have grown by 15% in this quarter year only.
03:16All right.
03:16Let's talk about the implant segment, like you mentioned.
03:20So you reported about a 25 crore business there in that segment, and you have a target
03:26of about 100 million to achieve in this business.
03:30Big target there.
03:31Is there a timeline for that?
03:32And also, how much do you think you will be able to achieve in FY25?
03:40Sure.
03:40So if you look at the quarter on, if you look at the year-on-year number, you know, we have
03:45grown at about 60% in the implant business.
03:48We were at about 16 crores last year.
03:50We are at 25 crores in this year.
03:53For this fiscal year, we have targeted anywhere between 130 and 140 crores to be done.
03:59Yes.
03:59And in fact, that will happen at a lower or higher single-digit EBITDA margin.
04:06And for, in terms of, you know, the long-term goal, yes, medium to long-term, we want to
04:13get to $100 billion.
04:15And we are confident that that will happen by 2030 for this business.
04:20Also, Shanay, if I want to ask about your ARPAV, we did see growth of around 14%.
04:26What were the major factors contributing to this growth?
04:29Did you implement any kind of price hikes or was the growth largely volume-driven?
04:36So the price hike has not been very significant.
04:39It is largely for two reasons.
04:41One is that the speciality mix has changed.
04:43So arthoplasty, which is knee and hip replacement surgeries, as a proportion of the revenue
04:50has gone up.
04:50And that is one of the reasons why you see that, you know, the ARPAV had grown.
04:56And secondly, this was the first full quarter where we saw that, you know, the Delhi acquisition
05:02has really kind of, I mean, if you look at it as a whole, it has added to the overall
05:07ARPAV because the ARPAVs in Delhi are typically higher.
05:11And when you consolidate the numbers, you know, that pulls up your overall ARPAV by
05:15a little bit.
05:16So that's the reason why you see that the ARPAV has grown.
05:19Also, if you see the occupancy rate stands at 48%, which is down almost 151 basis points.
05:26So where do you aim to take this?
05:30Well, the occupancy growth has actually not, I mean, it's not de-grown, it has grown.
05:35It's just that the overall operational beds have been added in this quarter because of
05:41the Delhi acquisition.
05:42So that's the reason why you see that the overall bed capacity has grown.
05:46And Delhi currently, obviously, is operating at a very low occupancy comparatively because
05:52it is a relatively new hospital.
05:54And that's the reason why you see that the occupancy has dropped.
05:57But if you look at our numbers that matter, which is the outpatient count number, the
06:02inpatient count number, they have grown at 15% on a year-on-year basis.
06:07All right.
06:08Let's talk about expansion plans.
06:10As part of your presentation, you mentioned about your plan of expanding in Mumbai, Nasik
06:17and Rajkot as well.
06:20Is this a FY25 plan?
06:22What kind of number are we looking at in terms of capex?
06:27Sure.
06:28So currently, we stand at about 170 crores of net debt as we speak.
06:34And we are planning, I mean, in fact, we are launching Rajkot.
06:37The soft launch has already happened.
06:38And we launched Rajkot in this particular quarter, quarter two.
06:43And we also have the Mumbai project, which is coming up, which is the Asha Parikh Hospital
06:48and BCJ Trust.
06:51There, we will be looking at investing anywhere between 250 to 275 crores for 200-bed facility.
07:00So that is basically in the pipeline.
07:02And we are confident that we will be able to receive and get the Charity Commissioner's
07:09approval in the next few weeks.
07:12What kind of contribution are we talking about to the top line in terms of these expansions?
07:20Well, I think the ARPOPs in Mumbai are in the range of 50,000 to 55,000 rupees.
07:27And I think we are making anywhere between 180 to 200 beds.
07:32It's going to be a multi-speciality hospital, which will be doing all high-end treatments.
07:38We'll be doing a lot of medical tourism work there.
07:41So I think with that, you can assess the kind of numbers we can be doing on the top line
07:47over there.
07:48All right.
07:49Final question, Mr. Shannay.
07:51If you can give us some sort of a guidance for FY25 on revenue and even on net profit,
07:58if you have.
08:01Sure.
08:01So as such, we're not giving guidance.
08:05But if I talk of the kind of growth on the standalone business, we'll be doing about
08:0920%.
08:11We'll be adding the Delhi numbers.
08:15We'll also add to the top line along with the implant numbers.
08:18So we expect anywhere between 1,100 to 1,200 crore top line for this particular year, which
08:26will be north of a 25-30% kind of growth.
08:29Right.
08:30Thank you so much, Mr. Shannay, for joining us here on NETV Profit.
08:34It was a pleasure having you on the show today.
08:36Thank you so much.