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GPT Healthcare Limited Q4 FY24 Earnings Update
Conference Call Overview • Date: May 22, 2024 • Key Executives: Group CFO and COO • Focus: Financial performance post-IPO (February 2024)
Financial Performance • Revenue Growth: 11% year-over-year, exceeding Rs. 400 crores • EBITDA: Rs. 93 crores • Profit After Tax: Growth of over 22% • Bed Occupancy: Approximately 59% across four hospitals in eastern India
Future Projections • FY25 Revenue Growth: Anticipated at 14-15% • EBITDA Margin: Expected increase • Expansion Plans: Target of 1,000 beds in 2-3 years
Dividend Declaration • Final Dividend: Rs. 1.5 per share
Occupancy Growth Strategies • Target Occupancy: 55% in Howrah, 60% in Agartala by FY'25 • Expected Timeline: 3-5 years to reach 65-70% occupancy for mature hospitals
Inorganic Growth Opportunities • Locations: Exploring Jamshedpur and Guwahati • Revenue Growth: 14-15% from existing hospitals through occupancy and price adjustments
Oncology Division • Expected Contribution: 5% revenue increase in first year from Agartala • Raipur Hospital: Nearing completion, set to open in FY'25
Pricing Strategies • Approach: Gradual adjustments to avoid market challenges • ARPOB Increases: Notable in Dumdum, enhancing ICU capacity without expanding beds
Treasury and Cash Management • Cash Reserves: Approximately Rs. 65 crores, with Rs. 55 crores for Raipur Hospital CAPEX • Cash Flow to EBITDA Ratio: 90%, providing funding flexibility
Pharmacy Sales • Integration: Outpatient pharmacies in three hospitals • Cost Contribution: Pharmacy consumption accounts for about 20% of costs
Hospital Operations • Raipur and Ranchi: Fixed lease rental model to maintain EBITDA margins • Construction: Awaiting pollution approvals for Ranchi
Inorganic Growth Strategy • Active Scouting: Opportunities in eastern India, potential acquisitions within the financial year
Management Insights • Criteria for Hospital Locations: Strict evaluation filters • Growth Profile: Strategic shift towards critical care to improve metrics • Raipur Hospital: Projected EBITDA breakeven in 15-18 months, full breakeven in about two years
Conclusion • Management expressed gratitude for support and encouraged further inquiries.
Conference Call Overview • Date: March 21, 2024 • Hosted by: JM Financial • Key Personnel: • Mr. Anurag Tantia (Whole Time Director) • Atul Tantia (Group CFO) • Ms. Kriti Tantia (CFO) • Structure: Recorded call with a Q&A session
Financial Performance Highlights • Q3 FY24 Results: • Revenue: Rs. 96.6 crores (3.9% YoY growth) • Nine-month Revenue: Rs. 300.7 crores (13.5% increase) • EBITDA: Rs. 22.2 crores (4.6% YoY growth) • Nine-month EBITDA: Rs. 68.4 crores (26.3% increase) • Profit After Tax: Rs. 11.5 crores (37.4% YoY growth)
Operational Metrics • Average Revenue Per Occupied Bed (ARPOB): Rs. 32,500 • Bed Occupancy Rate: ~60% • Expansion Plans: New 152-bed hospital in Raipur by Q4 FY25
Future Projections • Revenue Growth for FY25: 15% to 18% • ARPOB Growth: 7% to 8% • Target Occupancy: 70% for Agartala and Howrah hospitals in two years
Expansion and Growth Strategy • New hospitals planned in Raipur (FY25) and Ranchi (FY27) • Potential growth in Jamshedpur and Guwahati by FY26 • Projected profitability growth: CAGR of 25% over two years
Challenges and Considerations • Seasonal fluctuations affecting ARPOB and occupancy rates • Difficulty in expanding bed capacity in densely populated areas • Pricing strategy aimed at accessibility for working-class patients
Additional Insights • 91% of revenue from cash and insurance patients • Revenue-sharing arrangement for the new oncology center in Agartala • Focus on reducing Average Length of Stay (ALOS) across hospitals
Conclusion • Management expressed gratitude for stakeholder support and confidence in future growth and expansion plans.