16th Dec22 –Healthcare Global Interview CNBC :
–Focusing on the margins, our margin now is in the range of 18/19% , mature centers are in the mid 20s and we expect the new centers to also ramp up to that level –so looking at margins in the region of low 20s as we move to FY24. Our goal is low 20s.
–Reasons we are achieving this is due to operational efficiencies in the system apart from the ramp up in new centers
–ROCE –In mature centers its at 20/22% & our COE has 25% ROCE. The new centers are ramping up particularly in Mumbai and Kolkata . Once these ramp up, we expect ROCE to be in mid-teens & going forward to 20%.
–International patients–contribute 5 to 6% overall contribution, its only restricted to big cities , the Bangalore center has 18% revenue contribution from international & its ramping up well, Mumbai, Kolkata & Ahmedabad are also ramping up. The margins in international is 10 to 12% higher than domestic.
–Looking at standalone oncology units for acquisitions –for us cash flow is very imp. we are generating 15/20Cr cash flow every month . So it puts in a strong position to have some strategy for growth . Its going to happen through M&A & apart from that we have some areas in different states and 3rd is we are investing in tech in existing centers. Robotics / AI / Genomics / circulating tumor cells –investing in present centers will give us good growth.
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