Shalby Ltd. · NSE:SHALBY
Shalby — Q1 FY20 Earnings Presentation
37 slides from Shalby's earnings presentation, Jul 29, 2019
Slide 1: Shalby Multi-Specialty Hospitals - Exchange Submission Letter
SHALBY MULTI-SPECIALTY —— HOSPITALS —— July 29, 2019 Shalby/SE/2019-20/36 The Listing Department Corporate Service Department National Stock ExchangeofIndia Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code: 540797 Sub: Investor Presentation for the first quarter ended 3
Slide 2: Investor Presentation – Q1 FY20
INVESTOR PRESENTATION – Q1 FY20 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. www.shalby.org
Slide 3: Disclaimer
DISCLAIMER 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 of its date. Certai
Slide 4: Recent Recognition
RECENT RECOGNITION Shalby Hospitals recognized with Best brand evolution Award, category of the Healthcare Excellence Awards 2019 by Indian Express (Express Healthcare) on 11th July, 2019. www.shalby.org 3
Slide 5: Content
CONTENT 01 CORPORATE FACTS 02 OPERATIONAL PERFORMANCE 03 FINANCIAL PERFORMANCE 04 OTHER KEY UPDATES www.shalby.org 4
Slide 6: Corporate Facts
CORPORATE FACTS www.shalby.org 5
Slide 7: We value all human life placed in our hands
“ We value all human life placed in our hands and constantly working towards meeting the expectations of our customers and stakeholders by raising the standards of our service deliverables. www.shalby.org ” 6
Slide 8: Corporate Philosophy and ELITE Core Values
CORPORATE PHILOSOPHY VISION MISSION Exceeding expectation Leveraging global leadership in Joint from health replacement to establish multi-specialty care across geographies ELITE :OUR CORE VALUES EXCELLENCE INTEGRITY EMPATHY We work with We always do the We do everything an intent to right thing, ev
Slide 9: Eminent Leadership - Dr. Vikram Shah
EMINENT LEADERSHIP KEY ACHIEVEMENTS: Over two and a half decades of professional work experience across UK, USA and India. Serving as Director, Department of Knee Replacement at Shalby Hospitals since 1993 Dr. Shah innovated zero „0‟ Technique in 2011 and was awarded the Double Helical Award 201
Slide 10: Historic Evolution
HISTORIC EVOLUTION Year 1994 2004 2007 2011 2015 2017 2019 2012 2012 1070 594 Bed Capacity 6 27 228 11 11 6 4 1 1 2 # of Hospitals Started Revenue Operationalize Acquired Commissioned Bed capacity Started professional growth – 100 d First Multi Shalby Vapi Shalby Jabalpur grown 10 time
Slide 11: Corporate Facts
CORPORATE FACTS 11 Hospitals 60% Operating bed to total bed capacity 2012 Total Bed Capacity 46% Bed Occupancy (based on 985 census beds) 1200 Operational beds 31% 12 year CAGR Revenue 3000+ Human Resource (Doctor + Staff) 36% 12 year CAGR EBITDA 2000+ Surgeries per month 33000+ Patients served per
Slide 12: Organisation Structure
ORGANISATION STRUCTURE CORPORATE STRUCTURE UNIT LEVEL STRUCTURE Unit CAO Chairman & Managing Director Clinical Applications Corporate development Accounts Director Group COO CFO CHRO CIO VP Projects HR Hospitality Cluster COO CORPORATE SUB-FUNCTIONS IT/Systems Billing Unit CAO Pharmacy Admin/Ope
Slide 13: Shareholding Pattern as on 30th Jun 2019
SHAREHOLDING PATTERN AS ON 30th JUN 2019 PROMOTER & PROMOTER GROUP 79.43% RESIDENT INDIVIDUALS 7.21% FOREIGN PORTFOLIO - CORP 5.47% BODIES CORPORATES 4.65% EMPLOYEE TRUSTS 0.93% ALTERNATIVE INVESTMENT FUND 0.91% NON RESIDENT INDIANS 0.30% BANKS 0.14% CLEARING MEMBERS 0.16% OTHERS 0.80% www.shalby.or
Slide 14: Our Presence
OUR PRESENCE Existing 11 Units (2012 beds) Upcoming 3 Units (388 beds) Network of 37 Outpatient Clinics across 11 states in India National Presence International Presence (in Africa) PUNJAB Mohali – 145 beds RAJASTHAN Sudan (1) Addis Ababa (1) Jaipur – 237 beds Eldoret Kisumu Nairobi (1) Rwa
Slide 15: Operational Performance
OPERATIONAL PERFORMANCE www.shalby.org 14
Slide 16: Performance Synopsis – Q1 FY20
PERFORMANCE SYNOPSIS – Q1 FY 20 Particulars Q1 FY19 Q4 FY19 Q1 FY20 Growth Y-O-Y(%) Growth Q-O-Q(%) Total Revenue (INR million) 1,187.40 1153.9 1337.2 13% 16% Total EBITDA (INR million) 275 169.8 311.5 13% 83% EBITDA Margin (%) 23.20% 14.70% 23.30% 10 bps+ 860bps+ Bed Capacity (Nos.) 2012 2012 2012
Slide 17: IP, OP, Surgeries – Quarterly Trend
IP, OP, SURGERIES – QUARTERLY TREND IP Count OP Count Surgeries Count 16155 87575 15316 6146 14761 76794 77140 5480 13642 70525 71738 12266 4897 4893 6356 4638 5027 6644 2921 3159 4844 3155 2689 2619 2685 9107 9734 8798 9799 8672 3225 2325 2208 2019 2208 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY
Slide 18: IP, OP, Surgeries – Maturity Wise Quarterly Trend
IP, OP, SURGERIES – MATURITY WISE QUARTERLY TREND IP Count Day Care Count Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 3690 3382 3237 4811 2917 2741 2359 1802 800 530 954 141 439 506 27 85 6+ 4-6 2-4 <2 6+ 4-6 2-4 <2 6+ 4-6 2-4 <2 6+ 4-6 2-4 <2 Years Years Years Years Years Years Years Years Years Years Years Ye
Slide 19: Financial Performance
FINANCIAL PERFORMANCE www.shalby.org 18
Slide 20: Key Financial Parameters – Q1 FY20
KEY FINANCIAL PARAMETERS – Q1 FY20 Revenue (INR Mn) EBITDA (INR Mn) PBT (INR Mn) PAT (INR Mn) 236.6 1337.2 311.5 209.7 275.0 13% 18% 95% 13% 1187.4 121.3 177.8 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 ARPOB (INR/Day) ALOS (Excluding Daycare) 31,141 32,154 3% 4.19 4.24 Q1 FY19
Slide 21: Financial Highlights – Q1 FY20
FINANCIAL HIGHLIGHTS – Q1 FY 20 % of % of % of Growth Growth Particulars Q1 FY19 Q4 FY19 Q1 FY20 Revenue Revenue Revenue (y-o-y) (Q-o-Q) Revenue from Operations 1,159.7 1126.8 1317.7 14% 17% Other Income 27.7 27.1 19.5 -30% Total Income 1,187.4 1153.9 1337.2 13% 16% Expenses Materials & Consumables
Slide 22: Revenue & Surgery Mix – Q1 FY20
REVENUE & SURGERY MIX – Q1 FY20 6% 3%3% 16% 4% 5% 22% 2% 6% 3% 6% Speciality Payer 46% 3% Surgery Mix Mix 5% Mix 53% 57% 8% 7% 8% 26% 11% Arthroplasty Self Pay Arthroplasty Cardiac Science Corporate Government Orthopaedic Oncology TPA Nephrology Critical Care & General Medicine Corporate Private Gen
Slide 23: Maturity Profile - Q1 FY20
MATURITY PROFILE - Q1 FY20 OPERATIONAL PARAMETERS # Parameters 6 Years+ 4-6 Years 2-4 Years <2 Years Total 1 Total Bed Capacity 594 476 747 145 2012 2 Operational Beds 437 330 324 73 1200 3 Avg. Occupied Beds 162 138 137 20 457 4 Occupancy ( % ) 37% 42% 42% 27% 38% FINANCIAL PARAMETERS # Parameter
Slide 24: Other Key Updates
OTHER KEY UPDATES www.shalby.org 23
Slide 25: Technology Transformation
TECHNOLOGY TRANSFORMATION Implementation of advanced Hospital Information System (HIS) has been started in phased manner, complete implementation is expected to finish in next 7-9 months. Implementation of SAP ERP (SAP S4 HANA) also initiated, complete implementation is expected to finish in nex
Slide 26: Our Business Model – Optimising Capex and Opex
OUR BUSINESS MODEL – FEATURES OPTIMISING CAPEX AND OPEX Optimize capex Operational Lowest Capex and Opex per planning with Efficiency due to bed due to optimal use of Inhouse projects better capex real-estate team planning Equipment planning and utilities planning In-house planning teams Foc
Slide 27: Typical Concept of 200 Bed Capacity Set-up
TYPICAL CONCEPT OF 200 (±20%) BED CAPACITY SET-UP Facilities 10-15 kms away Local and Natural Footfalls from 4-5 kms radius helps to fill up ~50% beds Balance ~50% – patients come in the name of doctors reducing thereby dependency on star doctors thus controlling doctor payout % www.shalby.org 26
Slide 28: Our Business Models
OUR BUSINESS MODELS… Fully Owned No fixed Efficiency is rental paramount Unique revenue No security Operate sharing deposit Hospital and Manageme Manage model nt Contracts [Revenue Sharing] No minimum guarantee www.shalby.org 27
Slide 29: Role of OPDs for Expansion
ROLE OF OPDS FOR EXPANSION Simultaneously hire local doctors Patients visit our and train them at clinics across Ahmedabad who India and abroad conduct OPDs in and around So we can start Punjab We analyze that city the facility with patient trends and low branding accordingly decide budget but high
Slide 30: The Opportunity Set
THE OPPORTUNITY SET Population and Population Growth Rate of India Spilt of Indian Healthcare Industry by Segments (Historical and Expected) Total market size (2016): INR 9.2 trillion CAGR (2014-2020) 4% 100%= 0.9% 9% 1.27 billion1.29 billion 1.32 billion 1.35 billion 13% 54+ years 100% 2.6% 6% 35-5
Slide 31: The Opportunity Size
THE OPPORTUNITY SIZE Spilt of Public and Private Hospitals in India Indian Healthcare Delivery Industry size (2015-2020) (INR in Trillion) 11.7 10 30% 8.5 7.3 70% 6.2 5.4 Public Hospitals Private Hospitals 2015 2016(E) 2017(E) 2018(E) 2019(E) 2020(E) Private Corporate Hospitals account to less than
Slide 32: Recent Transformation
RECENT TRANSFORMATION Private sector investment has been increasing due to change in mind-set and better returns on investment Healthcare businesses can also be profitable as long the costs are affordable The advent of information technology has given a fillip to the healthcare business making
Slide 33: Case Study - The Cardiac Growth Story in India
CASE STUDY - THE CARDIAC GROWTH STORY IN INDIA 2014 ~ 2,00,000 surgeries and 8,00,000 angioplasties CAGR – 29% in 30 years. Currently growing @ 2-3% 2004 ~ 50,000 surgeries 1994 ~5000 surgeries Wide procedure penetration – to Tier 2 and 3 cities 1984 ~500 surgeries www.shalby.org 32
Slide 34: Knee Replacement - The Big Opportunity
KNEE REPLACEMENT - THE BIG OPPORTUNITY 2017 ~1,75,000 surgeries Last 1year, 2010 In United ~54,000 States ~0.8 mn surgeries knee replacements in a population 2000 of ~300 mn ~6000 India has a surgeries similar affording population. Hence, direct Asian potential to grow population to 8 lacs Knee 1994
Slide 35: Growth Drivers for Shalby
GROWTH DRIVERS FOR SHALBY Pioneer in Joint Replacements in the country, best positioned to capitalize on it Continue to gain Opportunities traction within within Homecare Oncology and Huge scope for Neurology organic growth and operating leverage Increasing focus on quaternary Cardiac treatments Sci
Slide 36: Conducive Government Policies Despite Challenges
CONDUCIVE GOVERNMENT POLICIES DESPITE CHALLENGES Swastha Bharat, Smriddha Bharat. Demographic dividend realization impossible without proper healthcare Rashtriya Samaj Beema Yojana: 100 mln families will get Rs 500,000 per year for their families to cover secondary and tertiary hospital expenses 100
Slide 37: Thank You
THANK YOU Shalby Limited I Opp Karnavati Club I S G Highway I Ahmedabad - 380 015 I India. www.shalby.org