Shalby ltd Q1 concall highlights –
Consolidated revenues at 240 cr, up 17 pc yoy
Hospital business revenues at 216 cr, up 20 pc yoy
Implant business revenues at 16 cr, down 38 pc yoy
EBITDA at 48cr, up 8 pc yoy
PAT at 21 cr, up 4 pc yoy
Consol Debt at 109 vs 141 cr yoy
Occupancy at 50 pc vs 45 pc yoy
ARPOB at 38k, up 8 pc yoy
Signed franchise agreement at Ranchi (60 beds) under Shalby managed model
Business Infra-
09 Hospitals across western and central India
06 Hospitals under franchise model through Shalby managed / operated models
Franchise hospitals mostly concentrating on ortho and joint replacements
Implants business -US based hip and knee implant manufacturing facility. Approved by US FDA. Aim to ramp up sales to 800 cr in 5 yrs time !!
Currently, Anthroplasty and Orthopaedics contribute 53 pc of the revenues
Another MoU signed for Shalby operated franchise hospital at Rajkot ( 30 beds )
Implant business currently supplying primarily to US and India. Indonesia launch to happen shortly
Aim to open 50 more Orthopaedic franchises in 30 cities in India
Next in line – Malaysia, LATAM launch iro implant exports
Aim to exit FY 24 with mid single digit EBITDA margins from the implant business. Currently has negligible EBITDA
New Shalby franchise hospital at Ranchi has multiple specialities, bed capacity of 60 extendable to 100
Company is extremely cautious before selecting a franchise partner so as to not damage the brand reputation
Most Ortho surgeons availed leaves in Q1 resulting in reduced surgeries and sale of implants. Same happened post they finished the COVID backlog in the preceding months
Also made some design changes to the implant products which led to delayed production of newer designs
Implant business should pick up pace from Q2. Expecting very good Q3, Q4. Confident to grow 50 pc over LY (93 cr)on the back of new product launches !!! This despite a weak Q1
Company runs a small home care business. Provides physiotherapy, pharmacy, doctor on call and diagnostic services at home. Currently contributes 1 pc to the Hospital business’s topline. Growing rapidly. Company aims to make it 5 pc of topline in next 3 yrs
Most of Shalby’s implant business senior and mid level management has been hired from J&J’s orthopaedic implant division – hence hare really experienced
Aim to start the new hospital at Nahsik by Q1 next yr
Hospital business’s EBITDA in Q1 was 23 pc, likely to go up going fwd
Mumbai hospital to come up in 3-4 yrs. Capex for that would be in the range of 150-200 cr
Residual capex for Nahsik hospital @ 50-70 cr
Current bed capacity at 1300 beds. Nahsik and Mumbai will add 300 beds. Current capacity utilisation at about 50 pc
Rest of bed addition – via franchise route – Shalby managed or Shalby operated
Disc: initiated a tracking position @ 190 levels
| Subscribe To Our Free Newsletter |
