Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q2 FY24 Earnings Presentation
26 slides from Healthcare Global Enterprises's earnings presentation, Nov 9, 2023
Slide 1: Stock exchange filing cover letter for investor presentation
November 09, 2023 National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra, India Maharashtra, India Dear Sir/Madam,
Slide 2: Healthcare Global Enterprises Limited Investor Presentation
HEALTHCARE GLOBAL ENTERPRISES LIMITED I NV ESTOR P R ESENTATI ON November 2023
Slide 3: Safe Harbor
SAFE HARBOR This presentation and its contents are confidential and are not for release, publication or distribution, in whole or in part, directly or indirectly, in or into or from the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful. This p
Slide 4: Q2 & H1FY24 Financial & Operational Highlights
Q2 & H1FY24 FINANCIAL & SUBASENI LENKA, CANCER WINNER OPERATIONAL HIGHLIGHTS I am eternally thankful to Dr. Panda and other specialists at HCG Panda Cancer Hospital, as the specialists were able to treat my condition the right way, the first time 3 www. h c g e l . c o m
Slide 5: Acquisition 1: HCG NCHRI, Nagpur
Acquisition 1: HCG NCHRI, Nagpur About HCG NCHRI ❖ HCG NCHRI LLP operates and manages 115 bedded hospital in Nagpur, providing comprehensive cancer care services under medical services agreement ❖ Revenue from operations of HCG NCHRI LLP for the financial year ended March 31, 2023, was INR 51.4 Cror
Slide 6: Acquisition 2: SRJ CBCC Hospital, Indore
Acquisition 2: SRJ CBCC Hospital, Indore Asset Overview • Indore based Comprehensive Cancer Care (CCC) hospital • 50 beds facility offering Medical, Surgical and Radiation oncology • First & #1 Comprehensive Cancer Center in private space in Indore • To acquire 100% of hospital on a slump sale basis
Slide 7: Clinical Highlights & Recognitions
Clinical Highlights & Recognitions Noteworthy Clinical Achievements ❖ Enhancing Clinical Capability: Added 3 Robotic Surgery Machines at Baroda, Mumbai and Kolkata Centers, taking the total to 7 robotic surgery machines across network ❖ Clinical Research: HCG Research Committee approved 65 studies b
Slide 8: Leveraging a successful playbook of smart acquisitions and driving sustained growth
Le v e r aging a s uc c essf u l p la y b ook of s ma r t a c q u is it ions a nd d r iv ing s u s t a ine d gr ow t h p os t a c q u is it ion Time tested and highly replicable model of consistent revenue growth across geographies HCG Ahmedabad HCG Cuttack HCG Vijayawada HCG Nashik Acquisition 2013
Slide 9: Financial Highlights Q2 FY24
Financial Highlights Q2 FY24 REVENUE R E V E N U E - H C G C e n t e r s (1) REVENUE - Milann Centers +16% +16% +7% 4,869 4,693 165 177 4,200 4,035 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 E B I T D A ^# PROFIT AFTER TAX PROFIT AFTER TAX EBITDA MARGIN^ (Excl. Indore) (Pre-IND AS) (Post-IND AS) +14%
Slide 10: Financial Highlights H1 FY24
Financial Highlights H1 FY24 REVENUE R E V E N U E - H C G C e n t e r s (1) REVENUE - Milann Centers +14% +15% +1% 9,476 9,136 338 340 8,281 7,942 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 E B I T D A ^# EBITDA MARGIN^ PROFIT AFTER TAX PROFIT AFTER TAX (Excl. Indore) (Pre-IND AS) (Post-IND AS
Slide 11: Improved Performance Leading to Profitability
Improved Performance Leading to Profitability 2.2x 4081 4200 4247 4417 4,607 4,869 3231 3520 3581 3646 Revenue 2740 2981 (INR mn) Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'FY24 3.8x EBITDA (Excl. ESOP) 740 760 773 778 764 864 632 636 652 (INR mn) 383 396 488 Q3'21 Q4'21 Q1
Slide 12: Growth Across HCG Centers
Growth Across HCG Centers* Matured Centers Emerging Centers^ ~1.4x g r o w t h i n l a s t 9 q u a r t e r s ~1.7x g r o w t h i n l a s t 9 q u a r t e r s +13% +29% REVENUE# 3,314 3,477 1,216 3,090 3,065 3,169 1,090 1,129 2,979 1,015 2,596 2,628 2,663 929 945 785 826 750 Q2FY22 Q3FY22 Q4FY22 Q1FY2
Slide 13: Strong Operating Metrics with Significant Capacity Headroom
Strong Operating Metrics with Significant Capacity Headroom Key Driver Metric Indicator % Revenue Q2’23 Q2’24 H1 ’ 2 3 H1 ’ 2 4 7% 3% 183 196 Lead indicator of Volume Growth; key 18%* 97 100 OPD Footfall (‘000) operating metric tracked by HCG; has correlation to OPD Footfalls 11% 12% 73 Key indicato
Slide 14: HCG – Q2FY24 Operational Metrics
HCG – Q2FY24 Operational Metrics # MATURED CENTERS EMERGING CENTERS MATURED CENTERS TOTAL AOR (%) AOR (%) A O R ^* ( % ) ROCE (%) 63.6% 65.1% 60.1% 21.2% 66.4% in Q2FY23 65.0% in Q2FY23 69.9% in Q2FY23 21.8% in Q2FY23 273 bps 14 bps 983 bps 60 bps ROCE pre-corporate a l l o ca t i o n s s ta n d s a
Slide 15: HCG – Cluster Wise Revenue Break Up
HCG – Cluster Wise Revenue Break Up # C LU ST E R Q2FY24 Q2FY23 Y-o-Y H1FY24 H1FY23 Y-o-Y K A R N ATA K A 1,574 1,426 10% 3,078 2,799 10% G U J A R AT 1,216 1,053 15% 2,352 2,054 15% MAHARASHTRA 713 565 26% 1,372 1,165 18% EAST INDIA 534 402 33% 1,022 789 29% ANDHRA PRADESH 349 300 17% 684 597 15% T
Slide 16: Milann – Implementing Strategic Initiatives
Milann – Implementing Strategic Initiatives BENGALURU (5 Centers) Growth Growth Particulars Q2FY24 Q2FY23 H1FY24 H1FY23 Y-o-Y Y-o-Y M S Ramaiah Nagar New 1,265 1,152 9.8% 2,477 2,764 -10% Registrations Shivananda Indiranagar IVF Cycles 465 473 -1.7% 879 1,011 -13% Whitefield Sarjapur JP Nagar Revenu
Slide 17: Capital Expenditure & Net Debt
Capital Expenditure & Net Debt CAPITAL EXPENDITURE (Rs. Mn.) NET DEBT (Rs. Mn.) NET DEBT 30 th Sept 2023 30 th June 2023 HCG CENTERS H1FY24 FY23 Bank Debt ( 1) 3,798 3,462 Vendor Finance ( 2) 320 321 Matured Centers 584 1,094 Other Debt 36 6 Emerging Centers 52 163 Less: Cash & Cash Equivalents ( 3)
Slide 18: Q2 & H1FY24 Consolidated Profit & Loss Account
Q2 & H1FY24 Consolidated Profit & Loss Account Profit and Loss (in Rs. Mn.) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1FY24 H1 FY23 Y-o-Y Revenues from Operations 4,859.6 4,192.1 4,597.1 9,456.7 8,265.2 Income from Govt. Grant 9.8 7.9 9.7 19.5 15.3 Total Revenue from Operations 4,869.4 4,200.0 15.9% 4,60
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet - Equity & Liabilities (in Rs. Mn.) Sep-23 Mar-23 Balance Sheet - Assets (Rs. Mn.) Sep-23 Mar-23 Equity Share Capital 1,393 1,391 Non-Current Assets Other Equity 7,185 7,214 Property, Plant And Equipment 10,125 9,718 Equity Attributable To Equity Holders Of T
Slide 20: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (in Rs. Mn) H1 FY24 H1 FY23 Net Profit Before Tax 284 204 Adjustments For: Non - Cash Items / Other Investment Or Financial Items 1,472 1,380 Operating Profit Before Working Capital Changes 1,756 1,584 Changes In Working Capital -732 -379 Cash Gen
Slide 21: Historical Financial Highlights
HISTORICAL FINANCIAL SHANKAR, CANCER WINNER HIGHLIGHTS The days I was at HCG, I felt like I was sleeping at home. They never stop caring for you. The doctors and nurses are always finding ways to make this difficult journey as comfortable as possible 20 www. h c g e l . c o m
Slide 22: Historical Profit & Loss Account
Historical Profit & Loss Account Profit and Loss (in Rs. Mn.) FY23 FY22 FY21 FY20 FY19 CAGR Revenues from Operations 16,914 13,948 10,092 10,923 9,760 Income from Govt. Grant 30 30 43 33 27 Total Revenue from Operations 16,944 13,978 10,134 10,956 9,787 15% Costs of Goods Sold 4,241 3,549 3,632 3,64
Slide 23: Historical Balance Sheet
Historical Balance Sheet Balance Sheet - Equity & Liabilities (in Rs. Mn.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity Share Capital 1,391 1,390 1,254 887 879 Other Equity 7,214 7,313 5,718 2,926 3,933 Equity Attributable To Equity Holders Of The Company 8,605 8,703 6,972 3,813 4,811 Non-Controlling I
Slide 24: Historical Balance Sheet
Historical Balance Sheet Balance Sheet - Assets (in Rs. Mn.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non-Current Assets Property, Plant And Equipment 9,718 9,315 8,531 9,271 8,026 Capital Work in Progress 182 217 300 461 1,440 Rights-of-use Assets 3,813 4,045 4,114 5,776 0 Goodwill 1,812 1,813 963 1,093
Slide 25: Historical Cash Flow Statement
Historical Cash Flow Statement Cash Flow Statement (in Rs. Mn) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Net Profit Before Tax 449 878 -2,287 -1,193 -334 Adjustments For: Non - Cash Items / Other Investment Or Financial 2,753 1,666 3,619 2,988 2,463 Items Operating Profit Before Working Capital Changes 3,2
Slide 26: Thank You
THANK YOU Company: HealthCare Global Enterprises Limited Investor Relation Advisors: Strategic Growth Advisors CIN: L15200KA1998PLC023489 CIN: U74140MH2010PTC204285 For updates and specific queries, please visit Mr. Sagar Shroff / Mr. Ayush Haria www.hcgel.com sagar.shroff@sgapl.net / ayush.haria@sg
HealthCare Global Enterprises — Q2 FY24 Earnings Presentation on 6ix