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Jupiter Life Line Hospitals Limited Q1 FY25 Earnings Conference Call Summary
Key Financial Highlights • Total income: INR 288.6 crores (up 18.2% YoY) • EBITDA: INR 65.3 crores (up 20.9%) • PAT: INR 44.6 crores (margin of 15.5%) • Average occupancy rate: 63.9% (up from 57.2% YoY)
Operational Expansion • Addition of 22 beds in Pune • Ongoing construction in Indore and Dombivli • Plans to add one more hospital this financial year, pending land acquisition
Management Insights • Ankit Thakker discussed: • Commissioning of a semi-finished 12-bed ICU in Pune • Recent expenditures of INR 10-15 lakhs per bed • Growth expected from existing hospitals with improved occupancy rates • Projected margin of around 25% as facilities mature • Introduction of robotic surgery with limited revenue impact • Focus on quality through NABH accreditation
Capital Expenditure and Future Plans • Dombivli hospital capital expenditure: INR 95 crores • Engagement with doctors to begin a quarter before hospital operations • Confidence in attracting footfall due to brand recognition
Additional Inquiries • No current plans for another hospital in Indore despite positive feedback • Demographic information provided for two locations in Pune • Estimated net cash: INR 250 crores to INR 300 crores
Conclusion • Thakker thanked participants and invited further questions through the investor relations team.
Conference Call Details • Date: May 13, 2024 • Transcript submitted on: May 17, 2024 • Key Executives: • Dr. Ankit Thakker (CEO) • Mr. Anand Apte (Chief Strategy Officer)
Financial Performance Highlights • Q4 Operational Income: Rs. 291.4 crores (20.3% YoY increase) • EBITDA: Rs. 63.2 crores (22.7% increase) • PAT Margin: 15.5% • FY24 Total Operational Income: Rs. 1,073.4 crores (19.9% increase) • EBITDA Margin: 22.6%
Expansion Plans • New 500-bed hospital in Pune • Additional beds in Indore • Maintained debt-free status post-IPO
Q&A Session Insights • Employee Costs: Increase due to gratuity provisions and one-time marathon expenses. • Future Free Cash Flow: Goal of reaching 2,500 beds with plans for another hospital in Western India. • New Hospital Locations: Focus on quality healthcare in underserved areas. • CAPEX for FY25 and FY26: Estimated at Rs. 600 crores, including Pune hospital costs. • Pune Project CAPEX: Rs. 500 crores for 250 beds in the first phase.
Operational Metrics • Occupancy Rates: Expected to rise to mid-70% range. • Revenue per Occupied Bed (ARBOP): Key metric for financial performance. • Dombivli Hospital: Rapid real estate growth and significant population demand noted.
Insurance and Pricing • Insurance Negotiations: Average hike of 8-10% for hospitals. • Annual Price Increase: Expected around 5% for self-payers.
Future Expectations • Indore Facility: 75-bed expansion with Rs. 20 lakhs per bed estimated cost. • ARPOB Improvements: Anticipated due to advancements in complex procedures. • Average Length of Stay (ALOS): Varies by treatment type; not a comparative metric.
Conclusion • Initial margin impacts from new expansions expected but anticipated to stabilize over time. • Estimated monthly losses of Rs. 2-3 crores from the Dombivli project in the first year. • Dr. Thakker invited further inquiries and thanked participants.
Conference Call Details • Date: February 12, 2024 • Submission Date: February 16, 2024 • Key Executives: • Dr. Ankit Thakker (CEO) • Mr. Anand Apte (Chief Strategy Officer)
Financial Performance • Q3 Total Income: Rs. 273.6 crores (19.8% YoY increase) • PAT: Rs. 43.7 crores • Average Occupancy Rate: 56.2% (up from 51.2% in previous quarter)
Expansion Plans • New 500-bed hospital in Dombivli • Additional bed capacity in Pune and Indore • Targeting approximately 2,500 beds over the next five years • Preference for organic growth over acquisitions
Service Offerings • Comprehensive range of services (childbirth, oncology, orthopedics, etc.) • No focus on specific key therapy • Low government payment figures due to non-participation in government schemes
Financial Insights • EBITDA growth drivers vary by location: • Thane: Pricing-related growth • Pune and Indore: Occupancy and improved case mix • Employee costs higher in Q3 due to annual bonuses, expected to normalize • Dombivli expansion projected cost: Rs. 100 crores in FY25 • Indore expected to reach optimal EBITDA margins in 1-2 years
Employee Stock Ownership Plan (ESOP) • Currently, no ESOP in place
Hospital Performance • Thane Hospital stabilizing with improving occupancy • Ongoing rate negotiations with insurance companies
Future Developments • Plans for future bed additions in Indore still in development • Growth in Indore driven by occupancy and specialty services • No significant acquisition developments in the western region
Regulatory Impact • Recent healthcare insurance regulatory changes expected to enhance attractiveness in the long run, but no immediate impact on operations
Conclusion • Dr. Thakker invited further questions and thanked participants at the end of the call.
Conference Call Details • Date: November 15, 2023 • Transcript submitted on: November 21, 2023 • Participants: Management team led by CEO Dr. Ankit Thakker, moderated by Jainil Shah • Purpose: Discuss financial results for Q2 and H1 FY24 ending September 30, 2023 • Compliance: Transcript shared with National Stock Exchange of India and BSE Limited as per SEBI regulations
Management Remarks • Dr. Ankit Thakker expressed gratitude to stakeholders. • Emphasized patient-centricity and ownership of hospital assets. • Focus on building full-service hospitals in Western India due to higher insurance penetration.
Financial Highlights • Q2 FY24 Revenue: Rs. 264.2 crores (18.4% YoY growth) • Q2 EBITDA: Rs. 62 crores • Q2 PAT: Rs. 33.7 crores • H1 FY24 Revenue: Rs. 508.4 crores (19.8% increase) • EBITDA Margin: 22.8% • Company is fully debt-free with Rs. 320 crores in net cash reserves.
Future Outlook and Growth Plans • Positive impact expected from insurance rate revisions in Pune and Thane. • Plans to expand by acquiring land for two additional hospitals in Western India. • Dombivli hospital expected to be operational by FY26, will be the largest in the area.
Operational Insights • High local demand in Dombivli will not negatively impact Thane operations. • Insurance patient ratio in Pune and Thane is approximately 65%. • Thane's operational growth confirmed at 11%, inpatient volume growth at 3%.
Questions and Clarifications • No future revenue or EBITDA margin guidance provided; past performance encouraged for assumptions. • Seasonal volume fluctuations discussed, with Q2 typically seeing higher volumes. • Preference for ownership model for expansion, but open to leasing opportunities.
Challenges and Considerations • Land acquisition challenges in India, focusing on underserved areas with high population density. • Current occupancy rates: Indore at 50%, Thane at 72%, Pune at 60%, with plans for gradual growth.