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Earnings Call Overview • Date: May 16, 2024 • Submitted to: National Stock Exchange of India and BSE Limited • Led by: Chairman Dr. Vikram Chhatwal and CEO Satish Gidugu
Financial Highlights • Quarterly Performance: • Total income: Rs. 171.1 crores (22.9% YoY growth) • Operating revenue: Rs. 166.8 crores • EBITDA: Rs. 37 crores (20.7% increase) • Profit after tax: Rs. 25.7 crores (50.6% growth)
• Annual Performance: • Total income: Rs. 653.1 crores (25.8% increase) • Profit: Rs. 92.3 crores (22.6% increase) • Net cash balance: Rs. 245 crores (debt-free)
Key Business Metrics • Premium Growth: • Total premiums under management: Rs. 19,050 crores (30.7% growth) • Market share in health insurance: 19.6% • Retention rate: 94.7% in group policies
• Acquisitions and Integration: • Recent acquisitions impacting financial metrics • Rs. 220 crores in contract liabilities expected to contribute to next year's revenue
Q&A Session Insights • Revenue and Growth: • Revenue recognized on a 1/365 basis • Organic revenue growth: 14% from same-store growth, 12% from acquisitions
• EBITDA Margins: • Decline in EBITDA margins to 21% from 23.63% • Expected recovery as synergies from acquisitions materialize
• Employee Count: • Total employees: 6,140 (increase from 5,470) • Raksha contributed approximately 750-800 new employees
• Technology Investments: • 3-4% of revenue allocated annually to tech development • Rs. 10 crores invested in platform development
Strategic Focus • Cashless Services: • Over 60% of inpatient and 30% of outpatient services are cashless • Enhances service delivery without diluting hospital network value
• Future Outlook: • No current plans for further acquisitions • Aim to maintain EBITDA margins in the 22%-23% range through efficiencies
Conclusion • Medi Assist is committed to growth and innovation in the health insurance sector, supported by strong financial results and strategic investments in technology and service delivery.
Submission Details • Date of submission: February 17, 2024 • Conference call date: February 13, 2024 • Submitted to: National Stock Exchange of India and BSE Limited
Financial Highlights • Total Premiums Under Management: • Growth of 35.7%, reaching Rs. 14,163 crores • Contributions from group and retail segments • Market Share: • 20% in total industry health premiums • Total Income: • Rs. 482 crores for nine months ending December 2023 (26.9% YoY increase) • Revenue from Contracts: • Rs. 468 crores, with government business (9.6%) and Mayfair We Care (5.9%) • Adjusted EBITDA: • Rs. 96.3 crores (8.6% growth) • Profit After Tax (PAT): • Rs. 66.6 crores (14.3% increase) • Net Worth: • Rs. 439 crores, with a return on net worth of 10.3%
Quarterly Performance (Q4 2023) • Total Income: • Rs. 169.8 crores (29.2% increase) • Operating Revenue: • Rs. 165.9 crores (32.3% increase) • Adjusted EBITDA: • Rs. 33.9 crores (20.4% margin) • Profit Margin: • Stable at 12.5%
Management Insights • Expansion in Health Insurance: • Driven by regulatory support and strategic initiatives • Preparedness for New Cashless Scheme: • Emphasis on adapting and expanding network
Q&A Highlights • Premium Collection Seasonality: • No significant seasonality in business • Competitiveness of TPA Services: • Medi Assist is cost-effective and supports insurers • Impact of Acquisitions: • Integration typically takes four quarters • Dividend Policy: • Maximum payout of 75% of current net profits and 25% of previous reserves • Revenue Recognition from Raksha Merger: • Only one month of revenue consolidated in Q2 • Employee Costs: • Increase attributed to full integration of Raksha's workforce
Additional Inquiries • Contract Liabilities: • Rs. 206 crores reported • Expected Credit Loss (ECL) Policy: • 100% provision for receivables over 365 days • Revenue Growth Guidance: • Aligns with premium growth, not revenue growth • Impact of NHCX Integration: • No expected changes in revenue
Conclusion • The call concluded with an invitation for further inquiries, emphasizing the company's commitment to growth and adaptability in the health insurance sector.