Ranvir’s Portfolio

KIMS Q4 concall highlights –

Revenues – 580 vs 380 cr ( YOY )
EBITDA – 163 vs 114 cr ( margins @ 27 pc vs 31 pc )
PAT – 99 vs 83 cr

IP volumes – 45k vs 32.5k
OP volumes – 380k vs 270k
ARPOB – 30.5k vs 25.1k
ARPP – 127k vs 115k

KIMS Sunshine Secunderabad to be shifted to new state of the art site & be operational in Q2 FY 24

Nahsik Greenfield and Bangalore Semi-brownfield work progressing as per schedule

Thane Hospital expected to be Ops by Q2FY25

Total operational Beds@3470

Occupancy@69 vs 78 pc YOY

Area wise split for FY 23 –

Operational Beds, ARPOB, EBITDA, EBITDA margins-

Telangana – 1085, 46k, 348 cr, 31 pc
AP matured – 595, 16k, 75 cr, 31 pc
AP acquired – 1010, 13.5k, 67 cr, 19 pc
Sunshine – 527, 63.8k, 81 cr, 19 pc
Nagpur – 250, 29.5k, 4.5 cr, 5 pc

Payor Mix –

Cash- 54 pc
Insurance – 26 pc
Corporate – 12 pc
Arogyasri – 8 pc

Current Hospital capacities –

Bengaluru ( under Const )
Nagpur ( 334 beds )
Nahsik ( under Const )
Telangana ( 4 hospitals, 1727 beds )
AP ( 7 hospitals, 1879 beds )
Thane ( under const, 300 beds )

Future geographic expansion planned in – Banglaluru Karnataka region, Nahsik, Aurangabad, Indore, North TN and Odisha

Nagpur facility – at current revenues, EBITDA to grow to double digits in about 6 months. As revenue expands, can expect further margin expansion thereafter

Thane to be a 300 bed hospital. Expect > 30k APPOB as its a metro city.Looking to strike a deal with strategic investor to partner in Thane so that KIMS’s capital is freed up and it becomes an asset light model there

Thane Capex post strategic Investor’s entry to be around 200cr

Nahsik + Bangaluru Capex for FY 24 to be around 450 cr

Likely to add aprox 200-300 beds in FY 24 as parts of Thane and Nhasik get operational

Current net Debt at aprox 300 cr. Expect 6 cr/Qtr finance costs for FY 24

Looking for a property in Malad. Nothing concrete yet

A 1 lakh sq ft land parcel is avlb next to Thane facility for future expansions

To expand and add more beds at Kondapur and Secunderabad and add more specialities. Same for AP-mature hospitals

Telangana and AP existing hospitals will be scaled up to 2000 and 1200 beds

Most of the above mentioned expanded bed capacities to come online in FY 25

Bangalore, Nhasik, Thane – also to come online in FY 25. Real benefits to be visible in FY 26 – from these three facilities

For FY 24, there is headroom in existing hospitals to grow as group’s current consolidated occupancies are around 69-70 pc

Expect EBITDA high single digit EBITDA growth from AP-mature and Telangana hospitals in FY 24

Thane stake sale to make it asset light in advanced stages

No major debt increase is envisaged for Capex in Thane+Bangaluru+Nahsik as company is generating healthy cash flows

Beyond the current Capex (that’s lined up), company would like to digest these and only then go for further expansion

Adding more complex procedures in AP Mkt

This should lead to increase in ARPOBs in AP

Disc: core holding, holding from lower levels, biased