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Conference Call Details • Date: May 24, 2024 • Participants: • Mr. Yatharth Tyagi (Whole-Time Director) • Mr. Amit Kumar Singh (Group CEO) • Mr. Pankaj Prabhakar (CFO) • Moderator: Ms. Dhara from SMIFS Limited • Transcript Availability: Company’s investor relations website
Financial Performance Highlights • Fiscal Year Ending March 31, 2024: • Revenue: Rs. 6,705 million (29% increase) • EBITDA: Rs. 1,799 million (35% increase) • Profit After Tax: Rs. 1,145 million (74% increase) • Quarterly Performance: • Revenue: Rs. 1,777.5 million (24% year-over-year increase) • EBITDA: Rs. 465 million (21% increase) • Profit After Tax: Rs. 383 million (121% increase)
Key Developments • Integration of robotic surgeries • Opening of a new Radiation Oncology and Nuclear Medicine Center • Acquisition of Asian Fidelis Hospital (now Yatharth Hospitals, Faridabad) • Focus on expanding international patient services, especially with Jewar Airport
Capital Expenditure and Operational Updates • Significant CAPEX for new hospital and Surgical Da Vinci X Robot • Strategic location in Faridabad to enhance occupancy rates • Confidence in sustaining 29% revenue growth and 35% EBITDA growth
Future Expansion and Strategy • Focus on North India, particularly Delhi NCR and Haryana • Addressing rising receivables linked to government business and payment delays • Plans for future CAPEX estimated at ₹60-65 lakhs per bed for expansions
Acquisition Strategy • Historical acquisitions at reasonable valuations (60-70 lakhs per bed) • Emphasis on location and market potential for future acquisitions
Financial Concerns and Projections • Acknowledgment of increased debtors due to government payment delays • Expected improvement in cash flow in upcoming quarters • Current payer mix: 40% government, remainder cash and private insurance
EBITDA Margins and Revenue Insights • Projected sustainability of EBITDA margins despite new hospital openings • Notable increase in ARPOB expected from new radiation oncology services • Pricing differences: Government rates 25%-30% lower than cash rates
Conclusion and Future Outlook • Management expressed confidence in growth and operational efficiency • Plans to attract more cash-paying patients through marketing • Funding for future expansions through internal accruals and debt • Assurance that ongoing operational expenses will not significantly impact margins
Closing Remarks • Management invited further inquiries offline and expressed gratitude for participation.
Yatharth Hospital Earnings Conference Call Summary (Q3 FY24)
Financial Performance • Revenue Growth: 21% year-on-year, reaching INR 1,670 million. • Profit After Tax: Increased by 39%. • EBITDA: Rose by 29% to INR 464 million, with an EBITDA margin of 27.8%. • In-patient Revenue: Increased by 22%. • Nine-Month Performance: 31% revenue increase and 57% profit growth.
Strategic Developments • Acquisition Plans: • Asian Fidelis Hospital (200-bed facility) in Faridabad for INR 1,160 million. • Expected to enhance presence in Delhi NCR. • Expansion Goals: Aim to double bed capacity in three years through organic and inorganic growth.
Market Insights • Payer Mix: • 27% insurance, 37% government payments. • Focus on optimizing payer mix moving forward. • Medical Tourism: • Establishing an international marketing team targeting markets like Bangladesh and Iraq. • Significant revenue growth anticipated.
Operational Highlights • Super Specialties Focus: Emphasis on robotic surgeries and transplant programs. • Doctor Attrition: Under 10%, supported by in-house training. • Receivables Management: Average around 100 days, primarily due to government payments.
Future Expectations • EBITDA Breakeven: Expected within two years for new acquisitions. • Occupancy Projections: Anticipate over 50% capacity utilization in Jhansi within a year. • ARPOB Growth: Expected to increase over time, though lower than Delhi-NCR.
Challenges and Concerns • Seasonal Trends: Declining inpatient and outpatient volumes attributed to extended winter and flu season. • Government Debt: High level of receivables linked to government authorities.
Conclusion • Management expressed confidence in delivering improved results in Q4, with ongoing efforts to enhance operational efficiency and market presence.
Yatharth Hospital Q2 FY2024 Earnings Conference Call Summary
Key Highlights • Date of Call: November 8, 2023 • Management Present: Yatharth Tyagi (Whole-time Director), Amit Singh (Group CEO), Pankaj Prabhakar (CFO)
Financial Performance • Revenue Growth: • 34% year-over-year increase to ₹1,713 million • 11% quarter-over-quarter increase • Profit After Tax: • 70% increase to ₹276 million • Inpatient Revenue: • 37% year-over-year growth • EBITDA: • Increased to ₹456 million (36% year-over-year) • Margins expanded to 26.6% • Net Debt: • Company became net debt-free by September 2023 • Utilized ₹2,450 million from IPO proceeds for debt reduction
Operational Updates • Hospital Capacity: • Total of 1,405 beds across Delhi-NCR and Madhya Pradesh • Significant growth in Nephrology, Urology, and Neuroscience • Occupancy Rates: • Improved significantly, with Noida facility at 96% • Expansion Plans: • Plans to expand Greater Noida hospital from 400 to 600 beds • Introduction of robotic surgeries and enhanced oncology services
Tax and Regulatory Matters • Income Tax Search: • Recent search yielded no significant findings • No impact on company performance
Q&A Highlights • Robotic Surgery Costs: • Premium of ₹50,000-₹1 lakh for robotic surgeries • Consumable Costs: • Increased by 56% due to focus on super-specialty treatments • Receivables Increase: • Attributed to delays in government payments, expected to stabilize • Government Business: • Voluntary engagement; gradual shift towards insurance and self-payer segments anticipated • International Patients: • Growing influx and agreements with CIS hospitals to enhance capabilities
Future Outlook • Revenue Guidance: • Anticipated quarter-on-quarter growth in top line and margin expansion • Bed Capacity Expansion: • Plans to double capacity over the next 3-4 years, with acquisitions expected sooner • Operating Cash Flows: • Jhansi hospital performing well; occupancy increasing • Tax Rate Expectation: • Anticipated decrease to 25-28% by fiscal year-end
Conclusion • Commitment to Performance: • Management expressed gratitude and reaffirmed commitment to meeting performance targets in upcoming quarters.
Conference Call Details • Date: August 21, 2023 • Submitted to: National Stock Exchange of India and BSE Limited • Key Participants: • Yatharth Tyagi (Whole Time Director) • Amit Kumar Singh (Group CEO)
Financial Performance • Revenue Growth: 39% year-on-year to Rs. 1,545 million • Inpatient Volumes: Significant increases noted • Average Revenue per Occupied Bed (ARPOB): Increased by 20-23% year-on-year • Occupancy Rate: Reached 51% for the quarter
Operational Highlights • New Unit: Jhansi Orchha unit reached breakeven • Kidney Transplants: Successful operations, with over 95% for international patients • Future Plans: Expansion of high-value specialties and a new 200-bed facility near Jewar Airport
Management Insights • Internal Medicine: Accounts for 33% of patient care • Retention Strategies: DNB courses for doctors, no current equity participation • Capital Expenditures: Planned Rs. 132 Crores for future growth
Expansion Plans • Bed Capacity Increase: Greater Noida (400 to 600 beds) and Noida Extension (450 to 700 beds) • Inorganic Growth: Targeting regions in North India (Uttar Pradesh, Haryana, Punjab, Madhya Pradesh)
Competitive Positioning • Cost Efficiency: Lower material and consumer costs attributed to operational practices • ARPOB Comparison: Lower than peers, with plans for improvement through pricing adjustments • Market Confidence: Assurance of maintaining occupancy despite competition from Medanta and Max Healthcare
Future Outlook • Debt Repayment: Rs. 250-260 Crores repaid using IPO proceeds • EBITDA Margin: Currently at 26-27%, with expectations for improvement • Return on Investment: Estimated payback period of 2-3 years for capex
Staffing and Attrition • Doctor Retention: Key doctor attrition below 9%, junior doctor attrition expected to decline • Nursing Attrition: Remains a concern but is improving
Conclusion • Competitive Edge: Superior infrastructure and brand recognition • Hiring Strategy: Focus on attracting skilled doctors from leading hospitals • Transcript Availability: Confirmed to be accessible on the company's website
Contact Information • Provided at the end of the document.