Shalby hosted a
conference call on May 29, 2024. In the conference call the company was
represented by- Dr. Vikram Shah, Chairman and Managing Director, Mr. Shanay
Shah, President and Mr. Amit Pathak, Chief Financial Officer.
Key takeaways of the call
Occupied
Bed during Q4 FY24 were 637, growth of 10% YoY. In patient count (incl. Day
Care) was 21,313, growth of 14.9% YoY.
ARPOB
during Q4 FY24 was 39,101, growth of 12.1% YoY. ALOS stood at 3.75 compared to
4.01 in the corresponding quarter of the previous year.
The
company’s core specialties, including Arthroplasty, Oncology, Cardiac Science,
Orthopedic, Critical Care & General Medicine, and Neurology, collectively
contributed 82% to total revenue in Q4 FY24.
In
Q4 FY24, USA contributed 41% to revenue and India 59%. US customer sales mix
from retail and wholesale remained at 55% and 45% respectively.
The
company forayed into northern India through the acquisition of 100% stake in
Healers Hospital at Rs 104 crore on 15 March 2024. The company also
acquired 87% stake in PK Healthcare at Rs 101.92 crore on 25 Jan 2024. With
an operational capacity of 130 Beds, Sanar International hospital offers advanced
surgical care across specialties such as Oncology, Cardiology, Bone Marrow
Transplant, Kidney & Liver Transplant, Bone & Joint, and Neurosciences,
with 70% business from international markets serving over 60 countries.
Homecare
business exhibited robust growth, increasing by 36% YoY in Q4 FY24. Physio,
Diagnostics and Pharmacy are the major revenue contributors.
In
Q4 FY24, Arthoplasty contributed 38% to total revenue, Critical Care &
General Medicine 9%, Cardiac Science 10%, Oncology 11%, Orthopaedic 8%,
Neurology 6%, Nephrology 6% and others 12%.
In
Q4 FY24, Arthroplasty grew 8.5% YoY, Oncology grew 48.3%, Orthopaedic grew
22.8%, Nephro & Urology grew 33.3%, General & Cosmetic grew 15.2% and
Other Surgery grew 15.6%.
In
terms of payor mix, self-pay was 27% in Q4 FY24, insurance 41% and Government
22%.
The company
approved to operationalize the B2B supply chain business Hosply, through the
offline as well as online platform. The business will involve
surgical supplies to hospitals. It also approved to make operationalize Bone
Bank & Tissue Bank business through its subsidiary for preservation and
supplying bones and tissues to the patients.
Shalby
Academy vertical witnessed an encouraging response, with over 395 students
enrolled in various healthcare programs during Q4 FY24.
In Q4 FY24,
the company’s implant business delivered positive EBITDA.
The
company has headroom to grow further with existing bed capacity without major
capex.
Management
expects to achieve double-digit growth in the hospital business with
sustainable profitability, while also expanding and deepening its presence by
adding Orthopedic units under SOCE.
As of March 2024,
net debt balance at the group level amounted to Rs 155.7 crore, with a net cash
balance of Rs 22 crore at the standalone level, reinforcing its ability to
support strategic growth initiatives.
The company spent
capex of Rs 28 crore in FY24. Management guided capex of Rs 36 crore in FY25.
The board Recommended a final
dividend of Rs 1.20 per equity share of the face value
of Rs 10 each fully paid‐up, for the financial year ended March 31, 2024.
Paid-up equity share
capital, having face value of Rs 10 each decreased from Rs 107.353 crore in
quarter ended Dec 2023 to Rs 107.31 crore in quarter ended March 2024.
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