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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.

Shalby: Outlook On Revenue Growth | NDTV Profit

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