Shalby Hospitals

Imp points Shalby Q4 FY23 con-call:
• Appointment of Amit Pathak as CFO- a Chartered Accountant and Company Secretary by profession and a strategic leader with 20 years of extensive experience, earlier associated with Bharat Serums and Vaccines Limited (Advent Portfolio Company) as Vice President
• Guidance – 100m $ implant business @20% EBITDA margins in 5 years, 60% from USA, Hospital business to be double digit growth (15-20%) & Ebitda also (15-20%), Franchisee business to scale to 50 centres. For implant business will be WC self sufficient this year, only CAPEX will be instruments to be depreciated over 10 yrs (continuous CAPEX). Naroda & Mohali units to be biggest growth drivers next year.
• IN USA our prices for implants is slightly lower to 4 MNC (having 90% market share), mostly due to branding & not quality
• 1 implant sold generally comprises of 4 parts- thus gap between components produced & implants sold
• Indonesia prices for implant will be 1.2 time India & USA is 3 times India
• Have additional 10k sq ft space in USA California facility to expand further
• 70-75% is captive usage in implants
• Total Surgery count has increased by 18% to 6,553 in Q4 FY23 on YoY basis- Arthroplasty up 25%, Oncology up 30%, General & cosmetics up 25%, Nephro & Urology up 22%, Cardiac & orthopaedic Flat
• In-Patient and Out-Patient volumes grew by 24% & 9% in Q4 FY23 YoY respectively
• Occupied Bed has increased by 16% to 579 beds from 499 in Q4 FY22
• Occupancy rate at 46% in Q4 FY23 v/s 40% in Q4 FY22
• ARPOB grew to Rs.34,865 in Q4 FY23 from Rs.33,707 in Q4 FY22
• ALOS recorded at 4.01 days in Q4 FY23 v/s 4.12 days in Q4 FY22
• Gwalior SOCE got fully operationalized in Jan 2023.
• More than 9700 constructs (implants) were sold in full year FY23
• Consolidated Revenue at Rs 2,082 mn in Q4 FY23 v/s Rs.1,668 mn in Q4 FY22, growth of 25% YoY- Arthoplasty is 41% vs 37%, Critical care & general medicine is 10% same as FY22, Cardiac is 10% vs 11% FY22, Oncology is 10% same as FY22, Orthopaedic is 7% vs 9% FY22
• Hospital business Revenue at Rs.1,836 mn in Q4 FY23 grew by 21 % YoY from Rs.1,523 mn in Q4 FY22
• Implant business Revenue at Rs.208 mn in Q4 FY23 grew by 103% YoY from Rs.103 mn in Q4 FY22 –
• Consolidated EBITDA at Rs.348 mn in Q4 FY23 v/s Rs.283 mn in Q4 FY22, growth of 23% YoY, Hospital business EBITDA 20% compared to 21% FY22
• Consolidated PAT at Rs.139 mn in Q4 FY23 v/s Rs.101 mn in Q4 FY22, growth of 37% YoY
• Consolidated Net cash (after deducting total debt) stood at Rs.712 mn as on Mar’23 v/s Rs.475 mn
• Mar’22 Total debt at group level reported at Rs.1,417 mn as on Mar’23 v/s Rs.1,550 mn
• Mar’22 Annualized ROCE for Q4 FY23 stood at 13.2% v/s 11.4% in Q4 FY22
• Homecare business highlights: Patients Served 7,139 in Q4 FY23 v/s 5,198 patients in Q4 FY22, grew by 37% YoY, Revenue booked Rs.28 mn in Q4 FY23 v/s Rs.19 mn in Q4 FY22, grew by 47% YoY
• Implant business – USA 59% & India 41%, USA – Retail 58% & wholesale 42%, Knee implants 63% & Hip 37%
• Our implant production has improved to an average of 4500 components per month in FY23 v/s 2000+ components per month last year, resulting capacity utilization >65% in full year FY23. The implant business became EBITDA positive in FY23 after significant cost reductions in raw material and freight cost. We have received the license approval to sell our implants in Indonesia during Q4 FY23. Our recently launched product called TUKS (Tahoe Unicompartmental Knee) has received an overwhelming response from the surgeons in USA and India both. Have external vendor to manufacture same & post July this will be completely commercial.