Shalby hosted a conference call on Feb 12, 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 Q3 FY24 were 590, registering growth of 8.4% YoY. In patient count (incl. Day Care) was 20,737, up 15.2% YoY.

ARPOB during the quarter was 37,342, up 2.9% YoY.

Company entered into northern India with acquisition of 87.26% stake into 130 Beds Sanar International hospital. Sanar offers comprehensive, advanced surgical care in specialties such as Cancer, Heart, Blood and Marrow Transplant, Kidney & Liver Transplant, Bone & Joint and Neurosciences among other specialties with 70% business from international markets catering to more than 60 countries.

Company’s hospital business revenue grew by 11.5% YoY in Q3 FY23.

Company’s core specialties such as Arthroplasty, Oncology, Cardiac Science, Orthopedic, Critical care & General Medicine, and Neurology contributed 83% to the revenues respectively in Q3 FY24.

In Q3 FY24, USA and India contributed 43% and 57% respectively to implant business revenue. In terms of product mix knee contributed 71% to implant sales and hip 29%. In terms of USA Customer Sales Mix, Wholesale contributed 41% in Q3 FY24 and retail 59%.

In Q3 FY24, Arthroplasty contributed 38% to total revenue, Critical Care & General Medicine 13%, Cardiac Science 9%, Oncology 10%, Orthopaedic 7%, Neurology 6%, Nephrology 5% and Others 12%.

Company is well placed to achieve double-digit growth in the hospital sector while maintaining consistent profitability driven by launch of new products, increase in new accounts, and addition of new territories.

Company expects its international hospital revenue to increase going forward.

Its Homecare business continued to grow by 30% YoY in Q3 FY24. Physio, Diagnostics and Pharmacy are the major revenue contributor in Q3 FY24.

In homecare business, company served 6840 Patients in Q3 FY24 compared to 7176 patients in Q3 FY23, down by 4.68% YoY.

In Q3 FY24, in patient count was 20,737, growth of 15.2% YoY.

Management indicated better payor mix with the higher self-pay and insurance patients. In Q3 FY24, Government contributed 24%, Self-Pay 33% and Insurance 43%.

Company’s Occupancy rate was 47% in Q3 FY24 compared to 43% in Q3 FY23.

The number of occupied beds stood at 590 increased by 8.4% YoY in Q3 FY24 because of increased volumes.

20 clinical trials are currently underway across all its hospital units.

Shalby Academy signed a MoU with Kaushalya Skill University, Govt. of Gujarat, during the Vibrant Gujarat Summit. This will further enable it to scale up its capacity-building efforts to improve the healthcare delivery system in the country.

Paid-up Equity Share Capital, having face value Rs 10 each increased from Rs 107.31 crore in quarter ended Sept 2023 to Rs 107.353 crore in quarter ended Dec 2023. This increase is due to exercise of 42,735 employee stock options.