Shalby Ltd. · NSE:SHALBY
Shalby — Q4 FY2021 Earnings Presentation
33 slides from Shalby's earnings presentation, 2021
Slide 1: Earnings Presentation Q4 FY2021
Earnings Presentation Q4 FY2021 SHALBY LIMITED (BSE CODE: 540797 I SHALBY, NSE CODE: SHALBY) A leader in Joint Replacement surgeries in India with an established chain of multi-specialty tertiary care hospitals.
Slide 2: Content
CONTENT 01 Q4 & FY2021 PERFORMANCE HIGHLIGHTS 02 HOSPITAL BUSINESS UPDATE 03 ANNUAL PERFORMANCE TRENDS 04 VISIT OUR ESG PROFILE ON ESG WORLD 2
Slide 3: Q4 & FY2021 Performance Highlights
Q4 & FY2021 PERFORMANCE HIGHLIGHTS
Slide 4: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS EBITDA upto Rs. 346 million, increase of 7.0% on q-o-q and 167.8% on y-o-y basis Board of Directors recommended a final dividend of Rs. 1 per share, 10% of the face value In Patient Count (Nos.) Surgeries Count 8,665 5,472 Total Income Operating EBITDA 8,945 in Q3 FY
Slide 5: Management Perspective
MANAGEMENT PERSPECTIVE Key Quarter Highlights Commenting on performance, Mr. Shanay Shah, President Said: “There were signs of normalization in Q4 FY2021 and as a result we saw a decline in Covid-19 patients count and a sharp rise in elective surgeries. ▪ Treated over 776 in Q4 FY21 and 6,640 Covid-
Slide 6: FY2021 Year in Review
FY2021 YEAR IN REVIEW Strong rebound in second half of the year despite Covid-19 challenges Improved margins and profitability driven by an increase in occupancy levels coupled with cost rationalization initiatives Net Profit increase of 53.6% to Rs. 424 Mn in FY21 Improving Operational Performance
Slide 7: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Cash flow from Operations of Rs. 935 Mn grew by 24% y-o-y Cash Flows Generated (Rs. Mn) – FY20 Cash Flows Generated (Rs. Mn) – FY21 Opening Cash from Taxes Paid CapEx Other Cash from Net Cash Closing Cash Operations Investments Financing Flows Cash Opening Cash from Taxes
Slide 8: Improving Profitability and Returns
IMPROVING PROFITABILITY AND RETURNS EBITDA and Margins Return on Equity 21.7% 5.2% 4.1% 19.7% 3.5% 19.4% 916 991 955 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 Net Profit 424 • Return on Equity for FY21 was 5.2%, an improvement of 169 bps from 3.5% in FY20 driven by an increase in Net 317 276 Profit • In F
Slide 9: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS Total Income (Rs. Mn) EBITDA (Rs. Mn) and Margin 28.0% 1,440 346 1,317 314 323 1,160 1,118 24.5% 24.0% 11.1% 408 129 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 (25) PBT (Rs. Mn) and Margin PAT (Rs. Mn) and Margin 245 215 222 21.6%
Slide 10: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS In Patients Day Care Out Patients 8,711 8,945 8,665 1,04,508 5,829 7,573 5,026 5,050 4,945 74,333 3,763 68,130 56,619 3,664 32,305 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 ARPOB (Rs.) Surg
Slide 11: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS Revenue Mix by Care % of Revenue from Arthroplasty 42% 40% 13% 16% 11% 10% 12% 4% 4% 3% 3% 7% 86% 17% 83% 77% 85% 85% 13% 12% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 In Patient Day Care Out Patient No of Bed Occupied Occupancy
Slide 12: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS Revenue by Hospital Specialty 44% 40% 17% 15% 12% 12% 8% 7% 8% 9% 9% 4% 3% 4% 4% 5% Arthroplasty Critical Care & Orthopaedic Cardiac Science Nephrology Oncology Neurology Others General Medicine Q3 FY21 Q4 FY21 Number of Surgeries by Specialty Revenues by End Patient
Slide 13: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS Total Operating Expenses (Rs. Mn) Total Costs Mix (Rs. Mn) D&A Expenses 1,094 8% 10% 8% 8% 1,031 994 17% 15% 9% 9% 9% Other Expenses 805 14% 16% 15% 14% 14% 17% Employee Benefit Expenses 433 66% 67% Purchase and Change in 60% 63% 50% Inventory Operative and Other Exp
Slide 14: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS Particulars (in Rs. Million)d Q4 FY21 Q3 FY21 Q-o-Q Growth Q4 FY20 Y-o-Y Growth Revenue from Operations 1,417 1,293 9.6% 1,055 34.3% Other Income 23 24 (4.7)% 105 (78.3)% Total Income 1,440 1,317 9.3% 1,160 24.1% Expenses COGS 815 737 10.5% 698 16.7% % of Revenue 58%
Slide 15: Q4 FY2021 Performance Highlights
Q4 FY2021 PERFORMANCE HIGHLIGHTS Operational Metrics Q4 FY21 Q3 FY21 Q-o-Q Growth Q4 FY20 Y-o-Y Growth In Patient Count 8,665 8,945 (3.1)% 8,711 (0.5)% (Nos.) Day Care Patient Count 5,829 5,050 15.4% 4,945 17.9% (Nos.) Out Patient Count 1,04,508 68,130 53.4% 74,333 40.6% (Nos.) Surgeries Count 5,472
Slide 16: Hospital Business Update
SHALBY MULTI-SPECIALTY ——HOSPITALS— HOSPITAL BUSINESS UPDATE
Slide 17: Our Regional Presence
OUR REGIONAL PRESENCE Shalby has developed strong brand recognition in its core markets and is well positioned for further expansion ➢ National Presence ➢ International Presence (in Africa) PUNJAB ▪ Mohali – 145 beds RAJASTHAN ▪ Jaipur – 237 beds GUJARAT ▪ Ahmedabad o SG – 201 beds o Krishna – 220 b
Slide 18: Hospital Business Update
HOSPITAL BUSINESS UPDATE Santa Cruz Development Update Nashik Development Update Business Model: Revenue Sharing Business Model: Revenue Sharing Bed Capacity: 175 Bed Capacity: 146 Operating and Management Term: 30 + 30 years Operating and Management Term: 30 years Operationalization Year: FY 2024 O
Slide 19: SG Group
HOSPITAL BUSINESS UPDATE Commencement 2007 | 13 Years Catchment: Ahmedabad and surrounding areas of Gujarat, Rajasthan and Mumbai No. of beds / Occupancy 201 | 34% SG • The unit has been active participants in the COVID Type of Arrangement Leased – Fixed Rent vaccination drive vaccinating nearly 650
Slide 20: Jabalpur
HOSPITAL BUSINESS UPDATE Catchment: South Gujarat, North Maharashtra (including Commencement 2017 | 3 Years Mumbai) No. of beds / Occupancy 243 | 49% Surat • Treated More than 200 Covid patients in a month(March) Type of Arrangement Freehold • Empanelment of 10 new private insurance companies Surat
Slide 21: Zynova Mohali
HOSPITAL BUSINESS UPDATE Commencement 2017 | 2+ Years Catchment: Punjab, Uttrakhand Mohali No. of beds / Occupancy 145 | 31% • Collaboration done with elite orthopedics surgeon (Dr. Manuj Type of Arrangement Freehold Wadhwa) to enhance our Arthroplasty Business. • Promoting Critical Care and Pulmono
Slide 22: Annual Performance Trends
SHALBY MULTI-SPECIALTY ——HOSPITALS— ANNUAL PERFORMANCE TRENDS
Slide 23: Annual Performance Trends
ANNUAL PERFORMANCE TRENDS Strong rebound in second half of the year despite Covid-19 challenges Improved margins and profitability driven by an increase in occupancy levels coupled with cost rationalization initiatives Total Revenue (Rs. Mn) EBITDA (Rs. Mn) and Margin 21.7% 19.7% 19.4% 4,715 5,042 4
Slide 24: Annual Performance Trends
ANNUAL PERFORMANCE TRENDS Significant impact of Covid-19 on the key operational parameters in FY21 In Patients Day Care Out Patients 23,728 3,25,596 2,96,197 39,030 19,674 19,668 36,311 2,61,562 28,847 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 ARPOB (In Rs.) Surgery Count 31,296 30,457 2
Slide 25: Annual Performance Trends
ANNUAL PERFORMANCE TRENDS Number of beds occupied increased by 4.9% y-o-y and occupancy rate of 39% Hospital Revenue Mix by Care % of Revenue from Arthroplasty 55% 12% 13% 12% 45% 45% 84% 83% 85% 15% FY 18 FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 In Patient Day Care Out Patient No. of Beds Occupied Occup
Slide 26: Annual Performance Trends
ANNUAL PERFORMANCE TRENDS Strong EBITDA to Cash Flow conversion rate of 89.1%. Unlevered balance sheet results in lower Return on Equity ROE ROCE 7.3% 6.9% 6.5% 5.2% 4.1% 3.5% FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 CFO to EBITDA Capital Structure 89.1% Figures in Rs Million FY 19 FY 20 FY 21 55.9% Gros
Slide 27: Annual Performance Trends
ANNUAL PERFORMANCE TRENDS Particulars (in Rs. Million) FY 19 FY 20 FY 21 Y-o-Y Growth Revenue from Operations 4,623 4,869 4,309 (11.5)% Other Income 93 174 91 (47.8)% Total Income 4,715 5,042 4,400 (12.7)% Expenses COGS 2,833 2,953 2,496 (15.5)% % of Revenue from Operations 61% 61% 58% Employee Bene
Slide 28: Annual Performance Trends
ANNUAL PERFORMANCE TRENDS Operational Metrics FY 19 FY 20 FY 21 Y-o-Y Growth In Patient Count 36,311 39,030 28,847 (26.1)% (Nos.) Day Care Patient Count 19,674 23,728 19,668 (17.1)% (Nos.) Out Patient Count 2,96,197 3,25,596 2,61,562 (19.7)% (Nos.) Surgeries Count 19,908 19,835 11,933 (39.9)% ARPOB
Slide 29: Visit Our ESG Profile on ESG World
VISIT OUR ESG PROFILE ON ESG WORLD
Slide 30: Visit our ESG Profile
Visit our ESG Profile on “We believe in being accountable to the community and the environment in which we operate and contribute towards its development and sustainability in order to create an overall positive impact. The Company continues to focus on maintaining sustainability and reducing enviro
Slide 31: Visit our ESG Profile
Visit our ESG Profile on • Environment Highlights Social Highlights “At Shalby, Corporate Social Responsibility is an extension of our goal of • “As part of environment strategy, the Company has adopted various conducting our business responsibly, fairly and in the most transparent initiatives to re
Slide 32: Visit our ESG Profile
Visit our ESG Profile on Governance Highlights Key ESG Facts “We at Shalby believe in being transparent and we commit to adhere to good governance practices at all times, as it CSR Fund: Rs. 30 Million generates goodwill among our clients and shareholders and helps the Company to grow” Corporate Gov
Slide 33: 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