Shalby Hospitals

Q2FY23 Shalby con call Imp points:

• Shalby has signed a MOU at Jammu to operate 100 bed multispecialty hospital- available by end of Q3
• Brownfield development Nashik to be available in next FY
• 600 occupied beds -50% occupancy (By year end target is 700+ to reach 60-65%occupancy)
• Quarterly production (Implants business) -11,901 & revenue of 24 CR (58% USA)-100 CR annually we should be EBITDA breakeven-Plan is to reach 1000Cr revenue in 5 years from this business at 20% + Margin- Have reached to several plants which will help us build capacity to serve our demands
• Upcoming FOSO/ FOSM centres (Asset light model) – Lucknow to start by next month- Focus will be to get more on FOSO model where revenue share is higher (95% approx. revenue share) – FOSM Shalby will get 7-8% management fees
• Mumbai project was 2-3 years due to covid, 2-3 years more post approval for Greenfield facility here to be live
• 2 roles Mr Kedia will look at is investing strategies & improving governance standards for board & thus help build brand value
• Lot of operating leverage will come in from hospitals in bucket of 5-10 years as margins will increase from 16% currently to upwards of 20%
• Homecare has potential to be 5% of overall revenue going forward in 3 years, for this division pharmacy & diagnosis is doing good, planning to come up with superspecialist treatments in same category
• Expect 15-20% growth in International business, has just reached pre covid levels.
• 40-60 Crore investment to build inventory for implant business over next 6 months is required, before it becomes cash accretive