Shalby Ltd. · NSE:SHALBY
Shalby — Q3 FY2022 Earnings Presentation
31 slides from Shalby's earnings presentation, Feb 3, 2022
Slide 1: Shalby Multispecialty Hospitals – Investor Presentation Cover Letter
® SHALBY MULT SPECIALTY - HOSPITALS - February 3, 2022 Shalby/SE/2021-22/93 The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Scrip Code : SHALBY Scrip Code: 540797 Through : https://www.connect2nse.com/ LISTING/ Through : http://listing.bseindia.co
Slide 2: Fit for the Future
FIT FOR THE INVESTOR PRESENTATION FUTURE 27 years of serving Q3 FY2022 www.shalby.org
Slide 3: Investment Case: 9M FY22 Revenues up 41% vs 9M FY20
INVESTMENT CASE 9M FY22 Revenues up +41% compared to 9M FY20 1/3 Total Revenue (Rs. Mn) In Patient Count (Nos.) Surgeries Count +41% 30,974 14,682 5,445 53% 127% 3,852 20,182 in 9M FY21 6,461 in 9M FY21 2,928 Total Revenue Operating EBITDA Operating EBITDA 9M FY20 9M FY21 9M FY22 Rs. 5,445 mn 86% Rs
Slide 4: Investment Case: Hospital, Implant and Franchise Businesses
INVESTMENT CASE Hospital, Implant and Franchise businesses all on high growth trajectories and delivering synergistic value 2/3 1 Shalby Group Hospital, Implant and Franchise businesses all on high growth trajectories and delivering synergistic value Experienced team reinforced with appointment
Slide 5: Investment Case: Brand, Margins and Key Valuation Parameters
INVESTMENT CASE Shalby brand and value add services reflected in ~20% EBITDA margins and double digit ROCE 3/3 Consistent Performance in Last 5 Years Key Valuation Parameters Total Revenue (Rs. Mn) 5,042 5,445 Key Valuation Metrics 31 Jan 2022 4,715 4,400 3,880 Share Price (in Rs) 141.50 Number. of
Slide 6: Agenda
AGENDA 01 Q3 FY2022 PERFORMANCE HIGHLIGHTS 02 SHALBY INDUSTRY & STRATEGY 03 Q3 FY2022 PERFORMANCE TRENDS 04 SUSTAINABILITY INITITAIVES 05 HOSPITAL BUSINESS UPDATE 5
Slide 7: Q3 FY2022 Performance Highlights
Q3 FY2022 PERFORMANCE HIGHLIGHTS Total Revenue up by 16.2%, backed by Strong Recovery of 84% in Surgery Count In Patient Count (Nos.) Surgeries Count 10,432 5,679 Total Revenue Operating EBITDA 8,945 in Q3 FY21 3,082 in Q3 FY21 Rs. 1,531 mn Rs. 312 mn Beds Occupied (Nos.) Avg. Occupancy Rate Q3 FY21
Slide 8: Q3 FY2022 Performance Highlights: Surgery Recovery
Q3 FY2022 PERFORMANCE HIGHLIGHTS Surgery count registered strong recovery of 84% from 3,082 in Q3 FY21 to 5,679 in Q3 FY22 Exceeding the pre-covid period average count of 5000 surgeries per quarter • During the quarter, In patients count increased 17% y-o-y primarily driven by increase in non-covid
Slide 9: Q3 FY2022 Hospital Group Performance
Q3 FY2022 HSOPTIAL GROUP PERFORMANCE All hospitals, at different maturity stages, continues to deliver strong performance Hospital - 10+ Years Hospital - 5-10 Years Hospital - 0-5 Years 228 842 892 Total Beds Total Beds Total Beds Rs. 424 mn 29% Rs. 501 mn 35% Rs. 528 mn 36% Revenue Revenue Revenue
Slide 10: Shalby Consensus – Q3 FY2022
SHALBY CONSENSUS – Q3 FY2022 Dedicated management committed to turnaround implant business • During the quarter, recorded total revenues of USD 1.2 mn and a YTD Q3 FY2022 USD (‘000) INR revenue of USD 2.8 mn (from May 15, to Dec 31, 2021) (‘000) • Deferred tax assets recognized on the operating loss
Slide 11: Management Perspective
MANAGEMENT PERSPECTIVE From Mr. Sushobhan Dasgupta, Commenting on performance, Mr. Shanay Shah, Vice Chairman and Global President President Said: “Over the years, Shalby has established a group of multispecialty hospitals “I am happy to report that Shalby has surpassed full year FY21 hospital with
Slide 12: Covid-19 Vaccination Drive
COVID-19 VACCINATION DRIVE “Covid-19 vaccination drive is a collective social and moral responsibility of the healthcare professionals and individuals. At Shalby, we remain fully committed to provide necessary infrastructure support and convenience by way of online registration to ensure maximum ino
Slide 13: Strengthening and Diversifying Service Offerings
STRENGTHENING AND DIVERSIFYING SERVICE OFFERINGS Rajasthan’s First Mitral Valve Replacement Minimal Invasive Shalby Hospital, Indore bestowed with Cardiac Surgery performed at Shalby Jaipur “The most preferred hospital in Madhya Pradesh Rajasthan’s first mitral valve replacement Minimal Invasive Car
Slide 14: Indian Medical Device and Implants Industry
INDIAN MEDICAL DEVICE AND IMPLANTS INDUSTRY The Medical Device Market expected to grow 3x in next 10 years on back of sustained growth drivers Indian Medical Device Market Size $Bn Joint Replacement Surgeries Knee Replacement Surgeries In India $Bn In India (000’s) 15% 1.37 12% 3x 13.6 CAGR CAGR 385
Slide 15: Expanding Footprint and Diversifying Business
EXPANDING FOOTPRINT AND DIVERSIFYING BUSINESS Shalby with its strong brand and expertise in Arthroplasty is well positioned to meet the high growth market in the longer run Shalby is a Leader in Joint Replacement Shalby Orthopedics Centre of with 15% Market Share Excellence and Franchise Model • Sta
Slide 16: Q3 FY2022 Performance Trends
Q3 FY2022 PERFORMANCE TRENDS Total Revenue (Rs. Mn) Operating EBITDA (Rs. Mn) and Margin 24.5% 24.0% 24.4% 20.1% 20.4% 1,828 446 1,717 1,531 1,440 346 345 1,317 323 312 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 PBT (Rs. Mn) and Margin Reported PAT (Rs. Mn) and M
Slide 17: Performance Trends: Patient and Surgery Counts, ARPOB
Q3 FY2022 PERFORMANCE TRENDS In Patients count was primarily driven by increase in Non-Covid patients. Surgery count registered a strong rebound with the normalization of Covid cases resulting in higher ARPOB on Y-o-Y basis In Patients Count Day Care Patients Count Out Patients Count 10,608 10,432 1
Slide 18: Performance Trends: Occupancy, ALOS, Revenue Mix
Q3 FY2022 PERFORMANCE TRENDS No of Bed Occupied Occupancy Rate* 723 59% 537 517 513 45% 43% 481 40% 42% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Average Length of Stay (ALOS) Revenue Mix by Care 6.10 5.52 10% 12% 10% 12% 5.00 18% 4.02 4.02 86% 85% 88% 79% 84% Q
Slide 19: Performance Trends: Revenue by Specialty and Payer Mix
Q3 FY2022 PERFORMANCE TRENDS Revenue by Hospital Specialty 44% 38% 17% 11% 12% 13% 10% 9% 10% 9% 7% 4% 6% 4% 3% 3% Arthroplasty Critical Care & Cardiac Science Oncology Orthopaedic Neurology Nephrology Others General Medicine Q3 FY21 Q3 FY22 Number of Surgeries by Specialty Revenues by Payer Mix 54%
Slide 20: Performance Trends: Revenue to EBITDA Bridge
Q3 FY2022 PERFORMANCE TRENDS Total Revenue to EBITDA Bridge 24.5% 24.0% 24.4% 20.1% 20.4% EBITDA % 7.3% 7.7% 7.0% 9.7% 6.9% 12.7% Other Expenses % 12.2% 11.7% 11.0% 11.1% Employee Benefit Expenses % Purchase and Change in Inventory % 54.4% 55.0% 56.1% 57.9% 58.4% Operative and Other Expenses % Q3 FY
Slide 21: Q3 FY2022 Operational Metrics
Q3 FY2022 PERFORMANCE HIGHLIGHTS Operational Metrics Q3 FY22 Q3 FY21 Y-o-Y Growth Q2 FY22 Q-o-Q Growth In Patient Count 10,432 8,945 16.6% 10,608 (1.7)% (Nos.) Day Care Patient Count 5,212 5,050 3.2% 4,931 5.7% (Nos.) Out Patient Count 1,08,849 68,130 59.8% 1,06,304 2.4% (Nos.) Surgeries Count 5,679
Slide 22: Performance Highlights – Standalone
Q3 FY2022 PERFORMANCE HIGHLIGHTS – STANDALONE Particulars (in Rs. Million) Q3 FY22 Q3 FY21 Y-o-Y Growth 9M FY22 9M FY21 Y-o-Y Growth Revenue from Operations 1,502 1,293 16.2% 4,994 2,770 80.3% Other Income 29 24 20.0% 81 73 11.0% Total Revenue 1,531 1,317 16.2% 5,075 2,843 78.5% Expenses COGS 918 73
Slide 23: Performance Highlights – Consolidated
Q3 FY2022 PERFORMANCE HIGHLIGHTS - CONSOLIDATED Particulars (in Rs. Million) Q3 FY22 Q3 FY21 Y-o-Y Growth 9M FY22 9M FY21 Y-o-Y Growth Revenue from Operations 1,624 1,318 23.2% 5,364 2,859 87.6% Other Income 28 23 24.7% 81 69 17.6% Total Revenue 1,652 1,341 23.2% 5,445 2,928 86.0% Expenses COGS 883
Slide 24: Sustainability Initiatives
SUSTAINABILITY INITIATIVES ESG Mindset Community Connect “We at Shalby are embracing sustainability to drive new values to our business” ESG Mindset Community Connect We at Shalby are embracing sustainability to drive new values to Under this on every Thursday we invited various samaj Workplace
Slide 25: Sustainability Initiatives – Environment
SUSTAINABILITY INITATIVES – ENVIRONMENT “We recognize the values inculcated in environmental responsibility and resource efficiency, accordingly our operations are infused with sustainable practices, ensuring a preservative footprint in the environment.” “Save 5-15% of water per tap per year “Saving
Slide 26: Sustainability Initiatives – Social
SUSTAINABILITY INITATIVES - SOCIAL “Our aim is to groom the best industry talent and build a competent workforce for supporting the healthcare industry” Shalby Multispecialty Hospitals along with EY and PeopleStrong organized “ HR Best Practices in the New Normal - An HR Leadership Conclave” • An HR
Slide 27: Hospital Development Update
HOSPITAL DEVELOPMENT UPDATE Santa Cruz Development Update Nashik Development Update Business Model: Revenue Sharing Business Model: Revenue Sharing Asset Light Model Bed Capacity: 175 Bed Capacity: 146 Operating and Management Term: 30 + 30 years Operating and Management Term: 30 years Operationaliz
Slide 28: Hospital Business Update
HOSPITAL BUSINESS UPDATE Catchment: Ahmedabad and surrounding areas of Gujarat, Rajasthan Commencement 2007 | 13 Years and Mumbai • Achieved milestone for internal committee approval for first degree No. of beds / Occupancy 201 | 34% kidney transplants SG • New doctors added in GI surgery, nephrolog
Slide 29: Hospital Business Update
HOSPITAL BUSINESS UPDATE Commencement 2017 | 3 Years Catchment: South Gujarat, North Maharashtra (including Mumbai) No. of beds / Occupancy 243 | 49% Surat • Interventional Radiology science is picking up very well • Successfully engaged senior visiting consultants on Exclusive Surat Group Type of A
Slide 30: Hospital Business Update
HOSPITAL BUSINESS UPDATE Commencement 2017 | 2+ Years Catchment: Punjab, Uttrakhand, Haryana Mohali No. of beds / Occupancy 145 | 31% • Rare surgery of Bilateral Cochlear Implant of 5 Year boy performed, Type of Arrangement Freehold born with congenital hearing loss Revenue Contribution% 5% Commence
Slide 31: Disclaimer and Contact Details
DISCLAIMER and CONTACT DETAILS No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as