Aster Conf call notes
Dr Moopen
- Started with macro interest rates, inflation ? Not sure why, as Hospital business is not impacted by it much.
- GCC new hospitals (Sharjah) commissioning delays and the lower Covid PCR testing caused EBITDA hit.
- Many Expats came back late to GCC, due to opening of travel in Q2 – Not sure if this is true ?
- Added a hospital in Tirupati as O&M- This is a low margin business- why ? AP/ Telangana performance has been terrible
- MIMS- Malabar Increasing holding by 5 %, spending 50 cr for Kerala hospitals.
Alisha Moopen
- UAE- MyAster app doing well driving Teleconsults, Remote medicine orders and Non prescription orders (higher margin)
- India will be the next focus area for the app
- Skincare business has big potential in GCC
Investor Questions
- Why O&M- Capital light footprint expansion, referrals. P&L will be consolidated, not a management fee. Low margin as it is Tier 2 towns. 5-8 % revenue share.
- GCC restructuring- Board sub-committee is reviewing. Promoters prefer to stay invested. Just get a partner. Seriously considering, I bankers appointed, getting interest. Repeated same story for last few quarters, no new information. Use of funds- not clear.
- Saudi Hospital divesting plan- turning around, will look at it when the GCC restructuring is completed
- Tax rate- Expect to be inline with current quarter ( 7-8 %)
- Focus areas other than India hospital business – Pharmacy business- push non pharma products, expand footprint in Saudi in partnership 250 stores
- Digital transformation- Bain Consulting
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