Shalby Ltd. · NSE:SHALBY
Shalby — Q4 FY2024 Earnings Presentation
53 slides from Shalby's earnings presentation, May 28, 2024
Slide 1: Covering letter to stock exchanges
May 28, 2024 Shalby/SE/2024‐25/21 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 Sub
Slide 2: Investor Presentation Q4 & FY2024
Investor Presentation Q4 & FY2024
Slide 3: Agenda
AGENDA 01 SHALBY GROUP QUARTERLY AND ANNUAL PERFORMANCE 02 HOSPITAL BUSINESS QUARTERLY AND ANNUAL PERFORMANCE 03 HOMECARE BUSINESS QUARTERLY AND ANNUAL PERFORMANCE 04 FRANCHISE BUSINESS QUARTERLY AND ANNUAL PERFORMANCE 05 SHALBY ACADEMY QUARTERLY AND ANNUAL PERFORMANCE 06 IMPLANT BUSINESS QUARTERLY
Slide 4: Financials Snapshot Q4 FY24
Financials Snapshot Q4 FY24 Consolidated Revenue at ₹ 2,492 mn in Q4 FY24 vs ₹ 2,082 mn in Q4 FY23 grew by 19.7 % YoY Consolidated EBITDA at ₹ 439 mn in Q4 FY24 vs ₹ 348 mn in Q4 FY23 grew by 26.1 % YoY Consolidated PBT at ₹ 218 mn in Q4 FY24 vs ₹ 192 mn in Q4 FY23 grew by 13.5 % YoY Consolidated Fi
Slide 5: Consolidated Performance Highlights – Q4 FY24
Consolidated Performance Highlights – Q4 FY24 Revenue (INR MN) EBITDA1 & Margin (INR MN) 2492 439 348 2082 16.7% 17.6% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Up 19.7% Up 26.1% PBT & Margin (INR MN) ROCE (%) 218 14.3% 13.2% 192 11.4% 9.2% 8.7% Q4 FY23 Q4 FY24 FY 22 FY 23 FY 24 Up 13.5% 4 1. EBITDA includes
Slide 6: Consolidated Performance Highlights – FY24
Consolidated Performance Highlights – FY24 Revenue (INR MN) EBITDA1 and Margin (INR MN) 9531 1965 8274 1593 19.2% 20.6% FY23 FY24 FY23 FY24 Up 15.2% Up 23.3% PBT & Margin (INR MN) PAT & Margin (INR MN) 1282 835 1020 677 12.3% 13.5% 8.2% 8.7% FY23 FY24 FY23 FY24 Up 25.7% Up 23.3% 5 1. EBITDA includes
Slide 7: Consolidated P/L & B/S – Q4 FY24
Consolidated P/L & B/S – Q4 FY24 Profit & Loss (INR Mn) Balance Sheet (INR Mn) Q4 Q4 Y-o-Y Gross 3,140 Particulars (Rs. Millions) Borrowings FY24 FY23 Growth Cash & Cash 1,583 Revenue 2,492 2,082 19.7% Equivalents EBITDA 439 348 26.1% Net Cash/(Debt) (1,557) EBITDA Margin % 17.6% 16.7% PBT 218 192 1
Slide 8: Diversification in Revenue Mix
High Growth Business Verticals Healthcare Conglomerate Building An Integrated Orthopedic Solutions Ecosystem Multi-Specialty Franchise Implant 11 Hospitals across western, northern 5 Hospital network USA based Knee & Hip and central India Manufacturing facility Synergistic Sustainable Business Model
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 Q4 FY24
Hospital Business Highlights Q4 FY24 Global leader in Joint replacements with more than 1,50,000 surgeries Surgery Count and YoY Growth Operational Performance Q4 Q4 YoY Particulars FY245 FY23 Growth Arthroplasty Nephro & Urology In-Patient1 (Nos.) 21,313 18,551 14.9% 3,440+ 8.5% 660+ 33.3% Out Pati
Slide 12: Standalone Business Highlights – Q4 FY24
Standalone Business Highlights – Q4 FY24 Financial Performance Revenue (INR Mn) EBITDA & Margin (INR Mn) 2,107 426 1,840 365 19.9% 20.2% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Up 14.5% Up 16.8% PBT & Margin (INR Mn) ROCE 325 18% 16% 265 14% 14.4% 15.4% Q4 FY23 Q4 FY24 Up 22.7% FY 22 FY 23 FY 24 11
Slide 13: Standalone Performance Highlights – FY24
Standalone Performance Highlights – FY24 Revenue (INR MN) EBITDA1 & Margin (INR MN) 8,504 7,276 1,982 1,615 22.2% 23.3% FY23 FY24 FY23 FY24 Up 16.9% Up 22.8% PBT & Margin (INR MN) PAT & Margin (INR MN) 1,583 1,038 1,214 808 16.7% 18.6% 11.1% 12.2% FY23 FY24 FY23 FY24 Up 30.4% Up 28.5% 12
Slide 14: Standalone P&L and B/S – Q4 FY24
Standalone P&L and B/S – Q4 FY24 Profit & Loss (INR Mn) Total Revenue to EBITDA Q4 Q4 100.0% EBITDA Particulars (Rs Mn) FY24 FY23 YoY Growth 90.0% 19.9% 20.2% 80.0% Materials and Total Revenue 2,107 1,840 14.5% 70.0% 26.0% 24.7% Consumables 60.0% Fees to Doctors and 50.0% Consultants EBITDA 426 365
Slide 15: Hospital Business Highlights: Specialty Revenue Mix
Hospital Business Highlights Specialty Revenue Mix Q4 FY2023 Q4 FY20241 Others, 13% Nephrology, Others, 12% Arthroplasty, Nephrology, Arthoplasty, 5% 41% 38% 6% Neurology, 4% Neurology, 6% Orthopaedic, 7% Orthopaedic, Oncology, 8% 10% Critical Care Critical Care & & General Cardiac General Oncology,
Slide 16: Hospital Business Highlights: Payor Mix
Hospital Business Highlights Payor Mix Q4 FY2023 Q4 FY20241 Government, 24% Self Pay, Government Self Pay, 33% 22% 37% Insurance, Insurance, 41% 43% Notes: 15 1. .Q4’FY24 numbers includes PK Healthcare performance from acquisition date.
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) 8504 1982 6598 1426 3284 778 1685 439 194 22 FY 2007 FY 2012 FY 2017 FY 2022 FY 2024 FY 2007 FY 2012 FY 2017 FY 2022 FY 2024 16
Slide 18: Shalby Sanar Deal Execution Summary
Shalby Sanar Deal Execution Summary Acquired 87% stake in PK Healthcare Pvt Ltd. at ₹101.92 crore on 25th Jan,2024. PK Healthcare Pvt Ltd. (Sanar Hospital) Shalby Sanar total deal size of ₹205.92 crore Acquired 100% stake in Healers Hospital Pvt Ltd. at ₹104 crore on 15th March,2024. Healers Hospita
Slide 19: Shalby Sanar FY23-24 Highlights
Shalby Sanar FY23-24 Highlights Total IP Count Employees 22500+ ARPOB 4350+ Sanar 350+ Patients ₹72,475 International Expertise Served in Total 71% Doctors & Centres :‐ in Liver, FY23‐24 Revenue revenue Consultant OP Count Total Bed Ethiopia Kidney, 50+ of ₹88.59 generated ALOS 4.80 18150+ Capacity
Slide 20: Homecare Business Highlights Q4 FY 2024
Homecare Business Highlights Q4 FY 2024 Q4 FY2024 Highlights Patients Served (Nos) 30496 Patients Served 8,091 in Q4 FY24 v/s 7,139 patients in Q4 FY23, grew by 13.3% YoY 27,001 Revenue booked Rs.38 mn during Q4 FY24 v/s Rs.28 mn during Q4 FY23, grew by 35.7% YoY Physio, Diagnostics and Pharmacy are
Slide 21: Clinical Update And Research Across Units during Q4 FY24
Clinical Update And Research Across Units during Q4 FY24 38 years old male admitted with complaint of severe tachypnea , tachycardia . On initial examination there was widespread Lymphadenopathy, hepatosplenomegaly and pedal oedema .Primary investigations revealed : Severe anemia, Hb - 3.0 , Leuko
Slide 22: 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 23: Franchise Business
SHALBY 5. CENTRE OF EXCELLENCE* FRANCHISE BUSINESS Build Health & Wealth fe SOCE), ‘SHALBY fr Av "=p 22
Slide 24: 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 Q4 FY24 Franchise Owned – Shalby Operated (FOSO) 1. The franchise is responsible for setting up the centre and S
Slide 25: Shalby Academy
SHALBY ACADEMY 24
Slide 26: Shalby Academy
Shalby Academy Q4 FY24 highlights Students Enrolled (In Nos) 1. More than 395 new students registered in Q4 FY24 in various disciplines like Physiotherapy, Nursing, Lab Technician Nutrition & 2,062 and dietetics, Clinical, Paramedics, Hospital Management, and 1,716 Pharmacy as part of their academic
Slide 27: Implant Business
246 IMPLANT BUSINESS r a 26
Slide 28: 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 29: Implant Business Performance Q4 FY24
Implant Business Performance Q4 FY24 Total Constructs EBITDA Revenue Sold Rs. 258 mn Rs. 0.53 mn 4,075+ Geographical Sales Mix USA Customer Sales Mix Product Sales Mix USA, 45%, Hip, 41% Wholesale 51% Q4 Q4 FY24 FY24 Retail, Knee, India, 55% 59% 49% 28
Slide 30: Implant Business Performance FY24
Implant Business Performance FY24 Total Constructs EBITDA Revenue Sold Rs. 786 mn Rs. 1.18 mn 10,300+ Geographical Sales Mix USA Customer Sales Mix Product Sales Mix India, 47% Wholesale, Retail, Knee, 49% Hip ,35% 51% 65% FY24 USA, 53% 29
Slide 31: SAT Highlights FY 23-24
SAT Highlights FY 23‐24 Successful launch of SAT in Indonesia Successfully passed our first FDA inspection since 2012 with no observations. Increased US sales by 11% from $372k in Q3’24 to $411k in Q4’24. Increased total global sales by 20% in Q4’24 vs Q3’24.
Slide 32: Increasing Product Sales
Increasing Product Sales • Total number of hip construct sold in US is Constructs Sold 148 & OUS (India & Singapore) is 1941 which was increased by 31% & 199% QoQ 4,078 and 21% & 1440% YoY respectively in Q4’FY24. 2,637 2,089 2,154 • Total number of knee constructs sold in US 1,905 1,874 1,989 is 42
Slide 33: SAT Strategy for FY2024-25
SAT 4 PILLARS FOR FY2024‐25 SAT STRATEGY FOR FY2024‐25 • New products Looking for another launch from 8 Mn$ through the Significantly lower Multi-vendor COGS across scratch. right products supply system • Improvement portfolio by across SEA with higher in the current (Malaysia), LATAM improving effi
Slide 34: 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 35: About Shalby
ABOUT SHALBY 34
Slide 36: Shalby At A Glance
Shalby At A Glance OPD clinics Presence 16 60 23 Orthopedic Implant Hospitals1 Domestic International2 Manufacturing in USA 30 Strength 2,350+ 4,600+ 1,150+ Years of Legacy Bed Capacity Total Employees3 Doctors4 Team Clinical Excellence #1 30+ ~3.3 million+ 150,000+ Global Ranking in Specialties Pat
Slide 37: 30 Years of ELITE Legacy
30 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 38: Our Journey & Expansion Plan
Our Journey & Expansion Plan • Sanar, Gurugram • Jaipur Shalby, Jaipur (237 beds) • Naroda Shalby, Ahmedabad (267 beds) 130 beds Vijay Shalby, Ahmedabad • Vapi Shalby, Vapi (146 beds) • Acquired 100% • • Surat Shalby, Surat (243 beds) • Lucknow SOCE, 40 beds 27 beds • Krishna Shalby, Ahmedabad (220
Slide 39: 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 Sanar Shalby 38
Slide 40: Franchise Hospital Portfolio
Franchise Hospital Portfolio Shalby Orthopedics Centre of Excellence (SOCE) 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) 39
Slide 41: Biggest Healthcare Corporate Group in Western and Central India
Biggest Healthcare Corporate Group in Western and Central India Domestic Presence…... PUNJAB Mohali – 145 beds Uttar Pradesh Lucknow – 40 beds DELHI Gurugram – 130 beds RAJASTHAN Jaipur – 237 beds Jharkhand GUJARAT Ranchi – 60 beds Ahmedabad o SG – 201 beds o Krishna – 220 beds o Naroda –
Slide 42: Sustainability Initiatives
Sustainability Initiatives ESG Mindset “We at Shalby are embracing sustainability to drive new values to our business” Community Connect 305+ Healthcare Camps Trainings Healthcare Awareness Programs Workplace Wellness 17500+ Life impacted 8,500+ and 5,300+ Man Hours Clinical and Non-Clinical trainin
Slide 43: Experienced Board Of Directors
Experienced Board Of Directors Dr. Ashok Bhatia Mr. Tej Malhotra Ms. Sujana Shah Independent Independent Independent Director Director Director Dr. Ashok Bhatia, a senior pharma professional has Mr. Malhotra boasts four decades of international and Mrs. Sujana Shah, a practicing Chartered Accountant
Slide 44: 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
Slide 45: Standalone Audited Financial Results Q4 FY24
Shalby Limited Regd. Office : Opp. Karnavati Club, Sarkhej Gandhinagar Highway, Near Prahlad Nagar Garden, Ahmedabad – 380 015, Gujarat, India Phone: +91 79 40203000, Fax :+91 79 40203120 E‐mail : companysecretary@shalby.in Website : www.shalby.org CIN : L85110GJ2004PLC044667 Statement of audited St
Slide 46: Notes to the Audited Standalone Financial Results
Notes to the Audited Standalone Financial Results for the Quarter and Vear ended March 31, 2024 1) The above Standalone financial results for the quarter and year ended March 31, 2024 have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of the company at thei
Slide 47: Standalone Balance Sheet
Shalby Limited Standalone Balance Sheet Part II [" in Millions] As at March 31, 2024 As at March 31, 2023 Particulars Audited Audited ASSETS Non-current assets Property, Plant and Equipment and Intangible Assets Property, Plant and Equipment 5,716.80 5,801.48 Right of Use Assets 62.68 75.08 Capital
Slide 48: Standalone Cash Flow Statement
SHALBY LIMITED Standalone Cash Flow Statement ['( in Millions] Year Ended Year Ended Particulars March 31, 2024 March 31, 2023 Audited Audited A. Cash flow from Operating Activities Net Profit before Tax as per Statement of Profit & Loss 1,583.11 1,213.55 Adjustments for Depreciation and amortisatio
Slide 49: Consolidated Audited Financial Results Q4 FY24
Shalby Limited Regd. Office : Opp. Karnavati Club, Sarkhej Gandhinagar Highway, Near Prahlad Nagar Garden, Ahmedabad – 380 015, Gujarat, India Phone: +91 79 40203000, Fax :+91 79 40203120 E‐mail : companysecretary@shalby.in Website : www.shalby.org CIN : L85110GJ2004PLC044667 Statement of Audited Co
Slide 50: Notes to the Audited Consolidated Financial Results
Notes to the Audited Consolidated Financial Results for the Quarter and Year ended as at March 31,2024 l) The above Consolidated financial results for the quarter and year ended March 31, 2024 have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of the compan
Slide 51: Segment wise Revenue, Results, Assets and Liabilities
Shalby Limited Segment wise Revenue, Results, Segment Assets and Segment Liabilities As per Indian Accounting Standard 108 'Operating Segments', the Company has reported 'Segment Information', as described below: a) The Healthcare Services segment includes business of setting up and managing hospita
Slide 52: Consolidated Balance Sheet
Shalby Limited Consolidated Balance Sheet Part II [~ in Million] As at As at Particulars March 31 2024 March 31 2023 Audited Audited ASSETS Non-current assets Property, Plant and Equipment and Intangible Assets Property, Plant and Equipment 8,395.92 6,300.06 Right of Use Assets 562.99 380.15 Capital
Slide 53: Consolidated Cash Flow Statement
Shalby Limited Consolidated Cash Flow Statement ['(in Million] Year Ended Year Ended Particulars March 31 2024 March 31 2023 Audited Audited A. Cash flow from Operating Activities Net Profit before Tax as per Statement of Profit & Loss 1,281.90 1020.43 Adjustments for Depreciation and amortisation 5