Shalby Ltd. · NSE:SHALBY
Shalby — Q2 & H1 FY2024 Earnings Presentation
40 slides from Shalby's earnings presentation, Oct 28, 2023
Slide 1: Stock exchange cover letter for investor presentation
Shalby/SE/2023‐24/76 October 28, 2023 The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code: 540797 Through : https://neaps.nseindia.com/NEWLISTINGCORP/ Through : http://listing.bseindia.com
Slide 2: Investor Presentation Q2 & H1 FY2024
Investor Presentation Q2 & H1 FY2024
Slide 3: Agenda
AGENDA 01 SHALBY GROUP QUARTERLY PERFORMANCE 02 HOSPITAL BUSINESS QUARTERLY PERFORMANCE 03 HOMECARE BUSINESS QUARTERLY PERFORMANCE 04 FRANCHISE BUSINESS QUARTERLY PERFORMANCE 05 SHALBY ACADEMY QUARTERLY PERFORMANCE 06 IMPLANT BUSINESS QUARTERLY PERFORMANCE 2
Slide 4: Financials Snapshot Q2 FY24
Financials Snapshot Q2 FY24 Consolidated Revenue at Rs 2,434 mn in Q2 FY24 grew by 17.5% YoY and 1.4% QoQ Consolidated EBITDA at Rs.581 mn in Q2 FY24 grew by 37.1%% YoY and 21.9% QoQ Consolidated Consolidated PBT at Rs.426mn in Q2 FY24 grew by 48.6% YoY and 29.3% QoQ Financial Highlights Consolidate
Slide 5: Consolidated Performance Highlights – Q2 FY24
Consolidated Performance Highlights – Q2 FY24 Revenue (INR MN) EBITDA1 & Margin (INR MN) 2,434 581 2,400 477 424 2,071 EBITDA Margin 20.5% 19.9% 23.9% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Up 17.5% Up 37.1% PBT & Margin (INR MN) ROCE (%) 426 20.9% 330 287 13.2% 11.4% PBT Margin 13.9% 13.7%
Slide 6: Consolidated Performance Highlights – H1 FY24
Consolidated Performance Highlights – H1 FY24 Revenue (INR MN) EBITDA1 and Margin (INR MN) 4,834 1,058 864 4,128 EBITDA Margin 20.9% 21.9% H1 FY23 H1 FY24 H1 FY23 H1 FY24 Up 17.1% Up 22.4% PBT & Margin (INR MN) PAT & Margin (INR MN) 756 484 593 385 PBT Margin 14.4% 15.6% PAT Margin 9.3% 10.0% H1 FY2
Slide 7: Consolidated P/L & B/S - Q2 FY24
Consolidated P/L & B/S - Q2 FY24 Profit & Loss (NR Mn) Balance Sheet (INR Mn) Q2 Q1 Q2 Y-o-Y Q-o-Q Gross 1,245 Particulars (Rs. Millions) Borrowings FY24 FY24 FY23 Growth Growth Cash & Cash 1,950 Revenue 2,434 2,400 2,071 17.5% 1.4% Equivalents EBITDA 581 477 424 37.1% 21.9% Net Cash/(Debt) 705 EBIT
Slide 8: Diversification in Revenue Mix
High Growth Business Verticals Healthcare Conglomerate Building An Integrated Orthopedic Solutions Ecosystem Multi-Specialty Franchise Implant 9 Hospitals across western and 6 Hospital network USA based Knee & Hip central India Manufacturing facility Synergistic Sustainable Business Model • Headroom
Slide 9: A Legend and Visionary Doctorpreneur behind Shalby
A Legend and Visionary Doctorpreneur behind Shalby Dr Vikram I. Shah, the Founder of Shalby Ltd, is a world-renowned Joint Replacement Surgeon who innovated “Zero Technique” that revolutionized Joint Replacement Surgery. A visionary entrepreneur, he transformed Shalby from a 6 bedded hospital in 199
Slide 10: Standalone Performance (Hospital Business)
STANDALONE PERFORMANCE (Hospital Business) 9
Slide 11: Hospital Business Highlights Q2 FY24
Hospital Business Highlights Q2 FY24 Global leader in Joint replacements with more than 1,50,000 surgeries and other core surgeries grew by higher double digits Surgery Count and YoY Growth Operational Performance Q2 Q1 Q2 YoY QoQ Particulars FY24 FY24 FY23 Growth Growth Arthroplasty Nephro & Urolog
Slide 12: Standalone Business Highlights - Q2 FY24
Standalone Business Highlights - Q2 FY24 Financial Performance Revenue (INR Mn) EBITDA (INR Mn) 2,163 2,230 575 1,828 497 437 EBITDA Margin 23.9% 23.0% 25.8% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Up 22.0% Up 31.6% Profit Before Tax (INR Mn) ROCE 473 23% 400 335 16% 14% PBT Margin 18.3% 18.
Slide 13: Standalone Performance Highlights – H1 FY24
Standalone Performance Highlights – H1 FY24 Revenue (INR MN) EBITDA1 and Margin (INR MN) 4,393 1,072 3,639 865 EBITDA Margin 23.8% 24.4% H1 FY23 H1 FY24 H1 FY23 H1 FY24 Up 20.7% Up 24.0% PBT & Margin (INR MN) PAT & Margin (INR MN) 566 873 433 663 PBT Margin 18.2% 19.9% PAT Margin 11.9% 12.9% H1 FY23
Slide 14: Standalone P&L and B/S - Q2 FY24
Standalone P&L and B/S - Q2 FY24 Profit & Loss (Rs. Mn) Total Revenue to EBITDA Consistent Q2 Q1 Q2 YoY QoQ Double Digit EBITDA Particulars (Rs Mn) FY24 FY24 FY23 Growth Growth Operating Margin 23.0% 23.9% 25.8% Materials and Consumables Total Revenue 2,230 2,163 1,828 22.0% 3.1% 23.9% 26.4% 23.9% F
Slide 15: Hospital Business Highlights: Specialty Revenue Mix
Hospital Business Highlights Specialty Revenue Mix Q2 FY2023 Q1 FY2024 Q2 FY2024 Others, 13% Others, 12% Others, 11% Arthroplasty Nephrology, Nephrology, Nephrology, , 39% 5% Arthroplasty 5% 5% Arthroplasty , 45% , 42% Neurology, Neurology, 4% 5% Neurology, 5% Orthopaedic Orthopaedic Orthopaedic , 8
Slide 16: Hospital Business Highlights: Payor Mix
Hospital Business Highlights Payor Mix Q2 FY2023 Q1 FY2024 Q2 FY2024 Self Pay, Self Pay, Self Pay, Governme 33% Governme 34% Governme 35% nt, 22% nt, 21% nt, 25% Insurance, Insurance, 44% Insurance, 44% 42% 15
Slide 17: Standalone Business CAGR Growth
Standalone Business CAGR Growth Shalby Continued to deliver high double-digit growth over the last 2 decades Revenue (INR Mn) EBITDA (INR Mn) 7,274 1,615 6,598 1,426 778 3,284 439 1,685 194 22 FY 2007 FY 2012 FY 2017 FY 2022 FY 2023 FY 2007 FY 2012 FY 2017 FY 2022 FY 2023 16
Slide 18: Homecare Business Highlights Q2 FY 2024
Homecare Business Highlights Q2 FY 2024 Q2 FY2024 Highlights Patients Served (Nos) 7,870 7,695 Patients Served 15,565 in H1 FY24 v/s 12,686 patients in H1 FY23, grew by 15% YoY 23% YoY 6,818 Revenue booked Rs.73 mn during H1 FY24 v/s Rs.44 mn during H1 FY23, grew by 66% YoY Q2 FY23 Q1 FY24 Q2 FY24 P
Slide 19: Clinical Update And Research Across Units during Q2 FY24
Clinical Update And Research Across Units during Q2 FY24 ▪ 1.2 Kg uterus along with fibroids was removed by virginal morcellation in Shalby Jaipur. ▪ Left ovarian cystectomy (of approximately 35cm with 10.5kg weight) plus right oophorectomy was performed successfully in Shalby Jaipur. ▪ A young pati
Slide 20: Key Focus Areas For Future In Hospital business
Key Focus Areas For Future In Hospital business Global Leader in Joint Replacement with diversification in other specialties • Continue to maintain global leadership in joint replacements • Ongoing diversification with Cardiac Science, Oncology, Neuro-science, Critical Care, General Medicine and Tra
Slide 21: Franchise Business
q SHALBY 5. cormorenes, />> OF FRANCHISE BUSINESS Build Health & Wealth $0ce}, SHALBY 2 20
Slide 22: Leveraging Expertise Through Franchise Asset Light Model
Leveraging Expertise Through Franchise Asset Light Model Franchise model will leverage Shalby expertise and enable to penetrate faster across pan-India Business models SOCE Performance in Q2 FY24 Franchise Owned – Shalby Operated (FOSO) • Total Surgeries performed at SOCE units (operated and managed
Slide 23: Shalby Academy
CO) SHALBY ACADEMY
Slide 24: Shalby Academy
Shalby Academy Q2 FY24 highlights Students Enrolled (In Nos) 1. More than 610+ students registered in Q2 FY24 in various disciplines like Physiotherapy, Nursing, Lab Technician Nutrition & dietetics, Up 17.0x 2,062 Clinical, Paramedics, Hospital Management, and Pharmacy as part of their academic out
Slide 25: Implant Business
OI IMPLANT BUSINESS i 3 = in oe Shalby Advanced “e\ fe’ Technologies Inc.
Slide 26: Diversified into Knee and Hip Implant Manufacturing In California, USA
Diversified into Knee and Hip Implant Manufacturing In California, USA Backward integration in Orthopedics with Inhouse capacity to consume in India 80,000+ Vertically integrated In- Components High Quality US FDA house manufacturing Manufacturing Approved Implants Facility capacity Surgeon’s Traini
Slide 27: Implant Business Performance Q2 FY24
Implant Business Performance Q2 FY24 Total Constructs EBITDA Revenue Sold Rs. 147 mn Rs. 2.3 mn 2,170+ Geographical Sales Mix USA Customer Sales Mix Product Sales Mix India, Wholes Hip, 34% ale, 18% 46% Q2 FY24 Q2 FY24 Q2 FY24 Retail, Knee, USA, 54% 66% 82% 26
Slide 28: Implant Business Roadmap
Implant Business Roadmap Shalby Advanced Technologies plans to become a Global player in a phased manner Existing Phase 1 Phase 2 Phase 3 Market Latin America Middle East Countries East Africa North America • Argentina • UAE • Kenya • Columbia • Saudi Arabia • Ethiopia Japan South-East and North • O
Slide 29: About Shalby
SHALBY CO) ABOUT SHALBY 28
Slide 30: Shalby At A Glance
Shalby At A Glance OPD clinics Presence 15 60 9 Orthopedic Implant Hospitals1 Domestic International2 Manufacturing in USA 29 Strength 2,000+ 4,000+ 1,000+ Years of Legacy Bed Capacity Total Employees3 Doctors4 Team Clinical Excellence #1 30+ ~3.2 million+ 150,000+ Global Ranking in Specialties Pati
Slide 31: 29 Years of ELITE Legacy
29 Years of ELITE Legacy Integrity Highest standards of transparency accountability, and corporate governance Learning Team-Work Laser sharp focus on A patient-centric focused upgrading the skills of team with a great blend of our team and building experience, diversity, fresh people capability thin
Slide 32: Our Journey & Expansion Plan
Our Journey & Expansion Plan • Jaipur Shalby, Jaipur (237 beds) • Naroda Shalby, Ahmedabad (267 beds) Vijay Shalby, Ahmedabad • Vapi Shalby, Vapi (146 beds) • • Surat Shalby, Surat (243 beds) • Lucknow SOCE, 40 beds 27 beds • Krishna Shalby, Ahmedabad (220 • Zynova1 Shalby, Mumbai (100 beds) • Gwali
Slide 33: Hospitals Portfolio
Hospitals Portfolio Multispecialty Units (Owned and Operate) SG Shalby Vapi Shalby Indore Shalby Jaipur Shalby Krishna Shalby Mohali Shalby Naroda Shalby Jabalpur Shalby Surat Shalby 32
Slide 34: Franchise Hospital Portfolio
Franchise Hospital Portfolio Shalby Orthopedics Centre of Excellence Multispecialty Vijay Shalby Lucknow Shalby Zynova Shalby (Mumbai) (Shalby Operated) (Shalby Operated) (Shalby Managed) Udaipur Shalby Gwalior Shalby Ranchi Shalby (Shalby Managed) (Shalby Managed) (Shalby Managed) SOCE- Shalby Orth
Slide 35: Biggest Healthcare Corporate Group in Western and Central India
Biggest Healthcare Corporate Group in Western and Central India Domestic Presence International OPDs PUNJAB Sudan ▪ Mohali – 145 beds Uttar Pradesh Addis Ababa ▪ Lucknow – 40 beds Rwanda Nairobi RAJASTHAN Dar es Salaam ▪ Jaipur – 237 beds GUJARAT ▪ Ahmedabad Jharkhand o SG – 201 beds Ranchi – 60 bed
Slide 36: Healthcare Awareness Programs
Sustainability Initiatives ESG Mindset “We at Shalby are embracing sustainability to drive new values to our business” Community Connect 240+ Healthcare Camps Trainings Healthcare Awareness Programs Workplace Wellness 15000+ Life impacted 10,190+ and 2,440+ Man Hours Clinical and Non-Clinical traini
Slide 37: Experienced Board Of Directors
Experienced Board Of Directors Dr. Vikram Shah Dr. Ashok Bhatia Mr. Tej Malhotra Ms. Sujana Shah Chairman and Independent Independent Independent Managing Director Director Director Director Dr. Vikram Shah, serving as Director of the Department Dr. Ashok Bhatia, a senior pharma professional has Mr.
Slide 38: Shalby Awards and Accolades
Shalby Awards and Accolades Mr. Shanay shah, shalby's president, awarded by FICCI Medical Value Travel Specialist Award 2023 business world healthcare (Orthopedics & Joint Replacement) to Krishna Shalby with 40U40 award Hospital Medgate Today Healthcare Award 2023 for Shalby Orthopedics Centre of Ex
Slide 39: Shalby In News
Shalby In News SHALBY LIMITED +Passion=Compassion- innovations Dengue, viral fever grip city “Hospitalization a alae ‘Warming to see more exces miiac arrest cases "in young population’ Ratels About aaereerd & ra tae, eo eH feed A eT “Sect het eed be ea, =a, =e, ‘faleen aptrla he Seger =a eh Peat Hew
Slide 40: 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