Artemis Medicare Services (NSE:ARTEMISMED) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to Artemis Medicare Services Limited q one f y twenty seven earnings conference call hosted by Anwati Shares and Stockbrokers Limited. As a reminder, all participant lines will be in the listen only mode, and there'll be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Himanshu Binani from Andrati Shares and Stock Brokers Limited. Thank you, and over to Mr. Binani. Thank you, Nirav. Good day, everyone, and welcome to the 1Q FY twenty seven earnings conference for the ARTEMISMEDICAL the management, we have doctor, managing director, mister, CFO of the company, and mister, head in this relations.

1:09 I would like to thank the management for giving us this opportunity to host this call. We'll begin the call with a brief meeting with management, post which we'll have the session open for q and a. Without further ado, I would like to hand over the call to Doctor. Dagliana. Thank you, and over to you, ma'am. Thank you, Himanshu. Good morning, and thank you for joining us for the earning call. We hope you all got a chance to go through our investor presentation uploaded on the stock exchange. We are pleased to share our financial and operational performance for the quarter ended 06/30/2026. I would like to begin by providing an overview of the health care sector and the overall hospital industry.

2:02 The health care sector continues to see a sustained demand for quality, tertiary and quaternary care services, supported by increasing awareness, improving access to advanced medical treatments and driving preference for specialized health care. At the same time, hospitals continue to focus on expanding capacity, strengthening clinical capabilities and adopting technology to improve patient outcomes and operational efficiency. We believe these trends will continue to support long term growth for quality health care providers. Turning to our performance.

2:48 Quarter one FY 'twenty seven marked a significant quarter for Artemis as we continue to execute our growth strategy while maintaining our focus on clinical excellence and operational efficiency. Our consolidated revenue from operations for the quarter was at 287.35 crores, reflecting a year on year growth of 12.7% on a consolidated basis and stand alone year on year, Bhuvan showed a top line growth of 15.4%. This performance was supported by sustained demand across our key specialties, particularly cardiology, oncology, neurosciences and orthopedics, along with continued improvement in case mix and higher contribution from complex procedures.

3:52 Our EBITDA for the quarter was INR 61.78 crores with an EBITDA margin of 21.5%. The quarter reflects our continued focus on improving operating efficiencies, optimizing resource utilization and maintaining disciplined cost management across our health care network. Our profit after tax for the quarter was reported at INR 31.56 crore, representing a year on year growth of 48.9%. The improvement in profitability reflects the strength of our operating model and our continued focus on delivering sustainable and profitable growth.

4:44 Operationally, our flagship Gurugram Hospital continued to perform very well during the quarter, supported by sustained patient volumes across key specialties and continued demand for advanced tertiary and quaternary services. Our occupancy for the quarter was at 65.7%, while average revenue per occupied bed increased to $85,690 reflecting continued improvement in case mix and higher contribution from specialized procedures. A key milestone during the quarter was the commencement of operation of ARTEMISMED SHANTI Hospital, Raipur, our 300 bed multispecialty tertiary care hospital in Central India.

5:44 The hospital became operational during the quarter under the ARTEMIS brand and marked an important step in expanding our presence beyond North India. Equipped with advanced medical infrastructure and comprehensive specialty services, the hospital strengthens our ability to provide quality health care across a wider geography while creating an additional growth platform for the company. Although the hospital has very recently commenced operation, we are encouraged by the initial response and expect its contribution to increase as occupancy improves and additional specialties become operational.

6:32 Our international patient business also continued to perform well during the quarter despite the war. We continue to witness demand from Middle East, Africa, CIS and other international markets supported by our strong clinical outcomes and patient experience. Our focus remains on strengthening relationships across these regions while expanding our medical value travel platform through targeted outreach and clinical excellence. On the expansion front, we continue to make steady progress across our growth initiatives. We have received the approval from the shareholders for the proposed QIP, providing us with greater financial flexibility to support our expansion plan.

7:31 We are in the process of starting our Tower 4 at Gurugram facility subject to getting all the clearances and compliances. This marks another important milestone in our long term expansion road map. The Tower 4 in Gurugram would house 200 plus beds within the same campus. Together with our expansion in Raipur and the planned South Delhi facilities, the projects which have already been announced, this would provide a total bed capacity of 2,000 operational beds by twenty twenty nine, two thousand and thirty. On the clinical front, we continue to strengthen our centers of excellence by expanding specialist capabilities and introducing advanced treatment protocols across key therapeutic areas.

8:29 Our all our transplant program, including our heart and lung transplants, are doing extremely well with great patient outcomes. Technology continues to remain an important part of our operating strategy. We are further expanding our use of AI enabled patient workflows, digital technologies and data analytics to improve patient flow, enhance clinical decision making and optimize operational efficiency across our hospitals. These initiatives are expected to further improve patient experience while supporting scalability across our network.

9:14 Sustainability also continues to remain an important part of our long term strategy. We continue to focus on energy efficient operations, responsible resource utilization and environmentally sustainable health care practices across our network. These initiatives are aligned with our commitment to create long term value for all our stakeholders while contributing positively to the communities we serve. Looking ahead, we remain focused on executing our long term growth strategy. The successful commencement of ARTEMISMED SHANTIHospital in Raico, our planned expansion in South Delhi, our Tower 4 projects within the Gurgaon premises, our strong pipeline of our expansion.

10:13 Our focus will remain on expanding capacity further, strengthening clinical excellence, improving operational efficiency and delivering sustainable value to our patients. With that, I will now open the floor for any questions. Thank you for your attention. Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask the question.

11:10 First question is from the line of from Inquiry Asset Management. Sorry to interrupt you. Can you repeat your question? You are not able to hear you. I hope I'm audible now. Yes, you are. Yes. My question is on the international patient mix that has come off a bit. If you can share some outlook on the reasons behind the lower share? And how do you see this segment going forward? Adesh, the international patient mix continues to grow is what I would like to see.

12:02 And despite the West Asian war in quarter one, we reported almost close to 30% of international business 27% of international business. But if you see the overall business has grown. So in real time, the number of patients were actually, they were not that compromised as compared to some of the other hospitals. The reason is we do not have a single regional dependency. And the point is we are getting a large number of countries from where the international patients are coming. And every year, we add two or three newer fronts. We open two or three newer international fronts to maintain this momentum.

12:49 And in quarter two, we are again hopeful to see it closer to, if not better than 30% is what we are looking at. And what I'm trying to emphasize here is that despite the West Asian war, when actually all the flights from West Asia stopped and we still managed twenty seven percent of international patients with 12% to 15% movement on the top line. So in terms of number of patients, we more or less manage the balance. So I hope I'm able to answer your question. Right. My second question is on the point where we have announced the additional expansion of 200 beds by purchase of additional FAR.

13:38 Whether this was a function of the change in regulations, which are now higher vertical construction and higher SAR, particularly for the Delhi NCR region. And if you can lay down a time line for us, there are two elements here. 100 bed SAR increase of the platinum green building certification and the additional 200 bed SAR, how are you thinking about your time lines in terms of occupied beds ramp up at the flagship hospital? Yes. So basically, thank you for your question. So it is the Tower 4 is basically a combination, like you mentioned, of the platinum rating, which gave us anywhere between 130 to 150 beds.

14:26 But we wanted to maximize this. So we had to buy a minimal SAR, which was because of the change of the government rules to go to 200 plus beds. And the time line we are looking here is between around eighteen to twenty two months to be able to fully operationalize this. Okay. Just to clarify, this 100 and the 200 is different, right? It's not under... No. This 200 is part of the 130 to 150, which we got free of cost because of platinum rating and another 70 beds additional FAR we have bought. So because of the change in the, you know, the height and we can go up further so that we are able to once and for you all completely utilize the government's permissible FAR.

15:18 So this 200 beds plus is a combination of the extra FAR from Platinum Building and a small part we have also bought to be able to completely utilize our SAR. Okay. Got it. Thanks. Thank you. Thank you. Next question is from the line of Samit Gupta from Antic Stock Broking. Please go ahead. Samit, your audio is not clear. Sumeet, can you hear us? Yeah. Go ahead. Yes. Yeah. Alright. Sumeet, congrats on a good set. So just want to understand, like, the hospital... Gurgaon hospital has reached nearly, like, ARTEMIS reached over twenty percent. So, like, in FY seven only, we can, like, see twenty percent to twenty one percent end of margin?

16:15 Yes. Sure. Absolutely. Okay. So, like, we louder, We are Yeah. So will three years. Is it fine? Hello? Yes. It's fine now. Yeah. Yeah. So over the next two to three years, like, can we achieve around 23, 20 in Gurgaon only? Yes. The answer is yes. Understood. And how is your Vicor facility going now that it has commenced operations? So we have witnessed a very encouraging trend as we have started. So we started on July 9, basically, the OPD and twenty seventh is when our July 27 is when the theaters and the cath labs got operational. And we are seeing a very, very encouraging trend in terms of OPT footfall diagnostics, which has started online and early surgeries have market.

17:23 Are seeing seeing So So we what kind of patients occupancy in like the can we expect over the next two to three quarters? And any losses that you so your loss guidance remains the same? Or like can we expect... So in a macro level, so we will break down for when we are fully operationalized and maybe in the quarter two call that we take with all of you. But at a macro level that we have looked at it, we are going to be looking at an eighteen fifteen to eighteen months of breakeven around 20 CR of overall operating loss and occupancy, it's very early days because we have just just started started it. It. So we will be able to give you better handle.

18:13 But as far as we are concerned internally, we are on track with whatever we had calculated, but we'll come back with exact numbers and figures in our quarter two presentation. Understood, ma'am. Thank you. All the best. Thank you. Thank you. Next question is from the line of Ardesh Vosalia from Spark PWM. Please go ahead. Yes. Good morning, everyone. I hope I'm audible. Yes. You are. Congratulations for a great set of numbers. Thank you. There are couple of questions which I had. Firstly, the school get a better idea on the new expansion that we have announced. So this new facility is will continue to be a multi specialty, like continue to host all the facilities that we have or we are looking at something specific in this new building?

19:08 It's a very pertinent question, and thank you for asking that. So this 200 plus facility is going to be extremely advanced tertiary and quaternary pediatric care and advanced gynecological and obstetrics wing. Basically, we are running a complete so we but there is no extra cost which is being incurred. So we are running every pediatric super specialty. I think we are known as the best pediatric surgery, quarterly care super specialty. But now we are putting them all together under one roof to be able to put it up to the people for them to realize that this becomes their one stop shop for advanced, whether it is a high end pediatric heart surgery, pediatric heart transplant, liver transplants or bone marrow transplants or any kind of high end pediatric orthopedics, endocrinology, gastroenterology.

20:13 So while we were doing it all together, now we are putting them under one roof by adding these 200 plus additional bed so that the aim is to become the nodal referral center for Haryana, if not the entire NCR for advanced pediatric and obstetric and gynecological care. So it's a positioning statement that we are doing, and that's the reason of clubbing them together. Okay. Okay. And as you said that this will be a core focus facility. So the margins are expected to be better than what we are generating in the normal... In our electric facility, or how we see the The margins will be will be same to better is what we predict because as you know, we are continuing with all these specialties already.

21:14 It is just like putting them under the same roof. But yes, having said that, since we are adding to economies of scale by adding 200 plus veg, so we look to improve the overall margins beyond 21% is what I can say. That's a good idea. So Okay. Continuing on the margin side, we have actually have witnessed one of the best quarters on our consolidated when it comes to our EBITDA margin. So is this concern level, I think if you can just help me out with what other drivers, like, what are the operational drivers that has been... Is that such a good performance and how sustainable they are? And is it right to assume that cardiac care as it has now turned positive even on fat level and has generated some decent profits. So is that one of the drivers?

22:13 So... No. So while rightly you said, the other smaller centers and cardiac care, but you must also remember, 95% to 97% of revenues come from our Gurgaon specialty, the tertiary care and the quaternary care. So I would say the first reason for improved margins is economies of scale. Our cost remains the same, and we are able to admit more and more patients with almost more or less the same manpower cost. That is one big thing. So that so adding another 200 beds, you will only see these margins going up further. Yes, some of the other contributors are the smaller centers, but more importantly, is the change of case mix. If you see our ARTEMIS, which is one of the highest in Delhi NCR continues to grow because we are now seen as not just a tertiary, but one of the best quarterly health care facilities.

23:11 So people come in for high end work, high end surgeries. We have brought in efficiencies in terms of our consumption. We have brought in efficiency in terms of average length of stay. We have optimized manpower cost. So all of this together so if you were to tell if you were to ask me three points, I would say economies of scale, case mix and the third would be contribution from the smaller centers, but that continues to be a relatively small contribution. Yes. Okay. Okay. Got it. Just a last question on the operational debt, would they average at around $5.45 even in Q1 and that has been the trend over Your the average operational debt that we are running came in at $5.44, which is, you know, something that has been there since Q1 of last year. So this...

24:03 Our occupancy for quarter one was 66%, and we are looking to improve it in quarter two, and that's the reason we are already in talks to add 200 beds because we feel we are at an inflection point where we would need more beds to prevent patient Okay. Okay. Thank you so much for answering my question. I will call back in the queue. Thank you. Thank you. Thank you. Next question is from the line of Abin Bini from GM Financial. Please go ahead. Hi. Thank you for the opportunity. Hope I'm audible. Yes. You are. Go ahead. Thank you, ma'am.

24:49 First of all, congratulations to the management on a great set of time, boss. I have two questions. First one, ma'am, in the report asset, what are the specialties that have been made available since the last ten to fifteen days since it hasn't started? And what are the phased plans to add the advanced specialties like on going forward and possibly the standards that you would be looking for that? Yes. Okay. Great question. So actually, Raipur facility, when we started, we did a soft launch on July 9, and we started with all the OPD services. So but we are not doing any phased kind. We are starting everything together. So we are as we speak, we are doing an oncosurgery today, a very high end commando surgery today. So we have started with advanced cath lab, EP systems, neurosurgery.

25:40 So all of that has started together in terms of services provided. And the overall CapEx has been INR 130 crores 120 crores, I stand corrected. 80% of the CapEx is already done. And as we speak, certain installations like the PET CT are under installation and the radiotherapy unit is on its way. But that is to answer your question that we are providing all the services at one go, and everything will start going live based on the installation between August 10 to, I think, end of August.

26:28 Yes. Got it, ma'am. And regarding my second question, which was the TowerCo, which I believe is the woman and childcare that you mentioned. So what kind of cross integration with the main hospital are we looking at? Like, would there be a separate team altogether for the entire facility? Or would there be any cross integration as such? No. So like I said, there will not be... So we are already doing tertiary and quaternary women and childcare, which is far more advanced than some of these pediatric stand alone hospitals. So when we realize that, it is all already in house. So all this whether it is people, whether it is equipment, all of this is already there.

27:14 So we are now just clubbing it under one tower where we will have OPD spaces and ICU, theaters and rooms. Technology are already available with us as we speak. But we are just putting them together under the Tower 4 Wing to be able to talk more about it and for people to realize that they have far more capabilities than some of the stand alone pediatric hospitals. So this is basically both from a capacity enhancement as well as from a business strategy point of view to showcase our strength in this segment, which we are anyway doing it, but we hope the numbers will increase far more when we are able to showcase it as a separate stand alone tower.

28:12 That's the point. Got it, ma'am. And just a follow-up on that. So will there be any initial impact on the utilization in the starting phase like on occupancies? Can we expect some moderation? No. So like I mentioned, in quarter one, we had shown 66% of occupancy. And we see by the time this tower is operational, we will almost reach our capacity and reach a situation when we might have to say no to patients. So basically, that is it so that no spillover gets out of the hospital, and we are easily able to transit from 70, 75% occupancy to this additional 200 without having any patient denial. So that is the thought behind it.

29:04 Got it, ma'am. So once the entire subspecialty of pediatrics and women care is transferred to TowerCo, around what kind of number of beds or capacity do we see being translated to multispecialty front, like to cater to the other demand that is My point is that this is it is not like we're transferring patients from here to there. What we are trying to do is, if you understand, if we reach 70%, 72% of bed occupancy, say, by maybe earlier, but say, by the end of this financial year, we would almost reach a capacity. So if we empty out our these beds inside the main tower and put the pediatrics women and cases in the 4th Tower.

29:55 So our occupancy will continue in the range of 71, 72%. And in the overall aggregated numbers. That's what we see. Got it. Thank you very much. Thank you very much. Next question is from the line of Nand Kumar, shareholder. Please go ahead. Nand Kumar, audio is not clear. Can you speak through the handset, please? Am I audible now? Sir, can you please speak through the handset? Your audio is not clear. I am speak through the handset only. Okay. Now better. Yes.

30:41 Yes. Please go on. Mr. Congratulations for that very good set of Q4 FY twenty seven numbers. Thank you sir. For giving me an opportunity for asking and thank you for giving me an opportunity have two questions. The one is what is the time line envisaged for the forthcoming INR 700 crore QIP? Yes. Okay. You want me to answer that first? So INR 700 crore is an enabling resolution, which we have taken. We are in the process of finalizing some other assets, mainly brownfield.

31:31 And it should be anywhere in the range of six to eight months before we go ahead with the QIP. This is an estimate. Yes. So we will come back once the asset finalization happens. Okay. Good. Very good. As I said, why is this decision? My question also was something like that you have partially answered it, but I will still answer that. From the numbers, it is understood that only only half of the capital raised from ISB has been spent so far. Is the like of this more prudent to postpone the line the very a line of We have as you are aware, you cannot service a deposits through debt.

32:40 So this money is going to move whatever money balance you see of the IFC is going to move towards the Vimance project, which is moving as per time line. And the second thing is INR 700 crores is an enabling resolution. So we how much of this we will pick up is based on: number one, the quality of asset that we get number two, keeping the dilution of our shareholders in mind and number three is the return on investments from these assets that we acquire. So I can rest assure it will be a very thought through process, which we will come out with full transparency with our shareholders before we decide on the amount of this raise.

33:29 You. You very much. I'll request to come back for a follow-up question. Next question is from the line of Anubhav from Mananwati. Ma'am, my question revolves around CapEx. So two questions. First would be, what would be the CapEx per bed in Gurgaon Tower 4 and by when it would be operational? And second is, how should one look at the CapEx number for FY 'twenty seven, 'twenty eight and 'twenty nine? Okay. So your first question first. So the Gurgaon Tower of 200 beds, which also includes another four fifty parking, all inclusive, the CapEx is going to be 55 lakhs per bed.

34:22 And we are also increasing our parking so that the ease of patients coming in is taken care of. And the CapEx for 'twenty seven, 'twenty eight, 'twenty nine, I will ask Rudra to address. Anubhav, so for the next three years, the CapEx outlay, including Raipur, would be close to INR 800 crores. And that is what we have planned, which includes Tower 4, Raipur, the women's fees and the regular CapEx that we entail in our flagship hospital. Okay. So am I thinking it correct when I'm saying that the CapEx per bed would ideally be lower due to the brownfield expansion as well as the pediatric care that we are opening?

35:08 So that what Doctor. Devlin indicated would see the only the tower, only the building has to be built and few equipments have to be placed on that. That's why the CapEx per bed would be close to 50 to 55 lakhs per bed, like for in Tower 4. Okay. Okay. Thank you. So basically, we are going to get 200 beds plus of Tower 4 with around for along with the parking for around 120 crores. Yes. Am I clear? Yes, sure. Thank you. Yes. Thank you. Next question is from the line of from ICIC Securities. Please go ahead.

36:01 Hello, am I audible? Yes, you are. Hi, ma'am. Thank you for the opportunity and congratulations for a great share of numbers. Thank you. Thank you. First on the numbers front, so can you please share the revenues and EBITDA margins for your rest of the centers separately like Artemis like cardiac care and Daffodil's? Is it possible? So would you be could you write to our CFO and Rudra for this? We will discuss it because we sent a letter. Yes, you write me offline, I will share you the details. Okay, sir. Done. Second on the Raipur Hospital, just wanted to understand how will the initial how is the initial progress? And by when can we expect the insurance entitlement?

36:58 Because I think industry wide, there was a problem last year. But since it's a new hospital, do we have any timeline for that? What was the first part of your question other than the insurance? Initial ramp So up or the LIFO progress is good, I would say. As per expectation, like I mentioned, we started the operating theater on twenty seventh, July 28. And today, we have performed some simple gallbladder cases. But today, we are performing a large commandosurgery, which is a home surgery. And in terms of insurance, we look to get the insurance impanelment in eight weeks eight to ten weeks' time.

37:47 Meanwhile, we have put an intermediary in place where PPA or insurance patient can come in and go get a treatment and go back with a cashless these claim buddies and all which are intermediaries, we have put them in place so that services continue and patients don't have problem till we get direct insurance impanelment. Okay. And ma'am, on the 200 beds, 200 odd beds that are going to come in the good house facility, by when can we expect these beds to go online? Maybe between eighteen to twenty two months. I mean, once the clearances come, it will be a very fast job because, you know, you don't have to dig the basement and all. It just goes because the basement and all are already created to maximum.

38:45 It just has to go up from ground up to, I think, seventh or ninth floors as per the new heights, and it would be pretty fast. In eighteen to twenty two months, we should be able to see, if not before. I'm giving you a kind of realistic to a little bit of a pessimistic estimate, yes. Got it. And my last question is on a broader now micro market specific question. So Rainbow Children's is one of the mother and childcare hospital, and they're going to come up with the capacity in Gurudan. So and now that the 200 beds that we are installing are going to be for mother and childcare. So how do you think the competitive intensity will shape up once these rates come up?

39:35 So first, to answer it on a more generic way, there has been no other place, I think, in the country, which has as intense a bad competition or a brand competition as Gurgaon. So as you have seen, we have continuously grown from a 90 bit to where we stand today. So that means people trust us in terms of our outcomes, the ethical practices and the quality of health care that we provide. That is on a more generic term. And in terms of more specific in terms of pediatric, tertiary and quaternary, I believe and I am confident that we do far more, like I mentioned earlier also, we do far more in terms of services as compared to any of the pediatric hospitals that you have mentioned.

40:26 And in fact, that was one of the reasons for us knowing that we will have competition here, we decided to create a separate benchmarking for us in a separate tower just to highlight the services that we have done, the track record we have in those services and the outcomes in those services, which are far greater than any of these stand alone pediatric hospitals. So actually, it is part of the business strategy to talk that what all we are capable of in this space much more than some of the competitors. Got it. Thank you so much, ma'am. All my questions have been answered. I'll follow-up in the queue. Thank you. Thank you. Thank Thank you. You. A request to all the participants kindly limit yourself to one question per participant and rejoin for a follow-up.

41:18 Next question is from the line of Sanidya from Unicorn Assets. Please go ahead. Yes. Hi, Artemis. Just a couple of questions. First on the Gurgaon, the new expansion. It says we need two years, like proposed capacity is to be added within two years. By when can we see the ramp up? And is it exactly 950,000,900,000, quite an ambiguity over there? And what could be the operational that's or the census that's if you can give a number and by then? So Rudra will answer that. Sandeep, so see, currently, we are operating 700 beds. As per the layouts and the drawings, it is summing up to 200 plus beds, but the exact number of beds, it would somewhat lie between nine fifty to nine sixty maybe with the inclusion of this 200 plus beds.

42:14 So that is what we have. But without the correct architectural drawings and the things in place, we will not be able to give you the exact number. That is why we have mentioned 200 plus beds. So the least would be 700 plus 200,900, the maximum would be close to $9.80. Sure. And when are we expecting this ramp up? So just talking about architecture? Yes. So like Doctor. Devina said, all the permissions, including the architectural and the commencement would take would be somewhat between eighteen to twenty two months, but that is a long stop date. We and that is a long stop date. It will be prior to that only. But having said that, on the estimated time lines, we are taking eighteen to twenty two months.

43:00 Sure. And second on the Hypur facility, exactly when did we start the operations there? So July 9, we start the OPD. At July 28, we operationalized our operating rooms, the theaters and the cat lab. So actually end of July, you can say. Yes. Yes. Makes sense. So is this facility completely operational in terms of equipment, doctors, nurses? Yes. It is completely operational except for installation of installation of the PET CT where some infrastructure creation is still going on and radiotherapy, which is which takes at least six months to be transported.

43:51 So barring that, everything is in place. Sure. And on the insurance ramp up there and what kind of numbers should we looking at, say, eighteen months on the line for? So exact insurance numbers only you're talking about or no? No. I'm saying insurance ramp up. How is insurance ramp up taking place at the ARTEMISMED? So insurance, basically, right now, you know, it takes three to four months, but we are hoping to get direct insurance panel within at least eight to ten weeks' time. This is also because now, as you are aware, the good news is the providers and the payers have come into a common platform through CII, and I am part of one of the Cochairs of this working group.

44:42 So empanelments turnaround times are happening quicker, and this is mediated through the IRDA Chairman, Mr. Seet. So we are hopeful that we should be getting direct impanelment in eight to ten weeks' time. And post that, we will see a quick ramp up at least 20, 25% faster than what it is today. But having said that, today, we have put an intermediary for a cashless experience for people who have insurance cards so that they don't have to pay out of their pockets. So those systems are in place. Thank you. Sure. Okay. Thank you. Thank you. Thank you. Next question is from the line of Shreedhar from Blue Hill Capital. Please go ahead.

45:34 Am I audible? Yes, you are. A little soft. If you could come closer to the microphone. Yes. Is it right now? Yes. Yes. Good afternoon. I'll pass the normalization by a set of numbers. Thank you. I have three questions, of which one has already been asked, but I just wanted to reconfirm. So the INR 700 crore raise for which you got approval will be largely used for acquisition related financing, number one? That's right. That's right. Wonderful. Question number two, what has been the experience of the Affordable, given that we've seen the likes of Cloud9 and motherhood doing really well? What is the plan for the Affordable? Is it playing out as per your original plan or is it not expanding?

46:23 And the third question the third question is, in terms of the organization structure, I know, doctor, you've been performing a fantastic job so far, almost twenty plus years. Question is how is the organization getting built under you? And also in terms of given the expansion to now multi cities, how is that being kind of taken care of? Very pertinent question. So the firstly, the INR 600 crore is enabling the resolution. And how much of that we are going to raise will depend on the asset finalization. Mostly, this will go towards newer assets, not the ones which we have already announced, preferably Brownfields with close to our positive close to EBITDA breakeven or positive EBITDA. That's your first question.

47:14 The Daffodil is a very pertinent question. We had started it as a hub and spoke model because we were a stand alone hospital, and we put it in areas from where we are we also start getting patients and the experience as a services. While the experience has been very, very good, we are also looking at basically combining some of the services like putting two of the centers together to increase the efficiency because end of the day, high number of beds always work better in terms of overall EBITDA. I'm not talking about margins, overall EBITDA. So the idea will be now to kind of consolidate some of the centers, bring in more efficiencies, maybe start a new floor on the new center and merge two of them or start a wing in the hospital and merge the pediatric care of, say, another center to this.

48:10 And having said that, when we go to a newer area like Arraypur, we will look at the similar concept of hub and spoke. But as we reach a maturity, we will continuously consolidate these centers because end of the day, our niche is tertiary and quaternary care. And tertiary and quaternary care can be provided only with a large hospital with large operating leverage. So it is to your answer, your question is both will go hand in glove. We will continuously converge and expand depending on the need, where are we opening our next big center. Yes. The last one about the organization side.

48:56 And the last one, yes, very pertinent, the management bandwidth. I think you should get in touch with Rudra to look at our entire management bandwidth and the organogram that we have created with central teams, regional teams, zonal area, how each is managing, what are the kind of controls that we are keeping, a very pertinent question. It will be very difficult for me to explain it without you looking at the organogram. So please write to Mr. Rudra Acharya or speak to him to get the whole organogram. And this organogram is a very exhaustive one, which will also keep where each region will keep getting added in a very systematic manner with the people, their designations and with the central control. So please get in touch with him for you to understand this Organigram.

49:52 Thank you. Sure. I will do that. Just one quick follow-up on that. I'm assuming at least you would have another five years to play as a CEO in this company. Sorry, I missed your question. Another? No, no. I was saying you would have at least another five years. You are I guess you are at 59, and you will be there till about 65 at least for this company? No. I'm planning 75, unless you want me to go. I'm really glad to hear that because this company is going to very happy to kind of note that. Yes. Thank you. Yes. All right. Okay. Thank you. Thank you very much. Next question is from the line of Kumar Saurabh from Scientific Investing. Please go ahead. Hello, ma'am. Congrats on Hello, recent hello. My question is on the brownfield expansion. I mean given we are already in there with established brands. Once it is launched in eighteen to twenty two months, in how many months do you see doing breakeven and reaching the 60% kind of target compared to Raipur where we are expecting it to become profitable in two years?

51:00 No, you're talking about any new brownfield that we acquired. Is that what you're telling? The 200 no, ma'am. The 200 bed expansion, which we are doing in Gurnav for that. Yes. So when you your question is when do we see it breaking even? I would say it would do in eight to ten months' time. And how much time will it take to reach not earlier. How much time will it take to reach to 50%, 60% utilization, ma'am? See, in my opinion, it should reach 50% in first six months. Okay. Great. And last question, ma'am. I know you told the INR700 crore for enabling resolution. But if we look at right now, it's that we are doing almost INR150 crore of cash flow. And in next three to four years, we might need INR600 crore, INR700 crore of CapEx for all the expansion.

51:49 So maybe more than 50% can come through internal accruals itself. So know you are telling about there are some assets also you are looking for. So my understanding is we will factor all the internal approvals and then additional debt because I think our leverage is also very good. We are paying hardly 25 crore interest from 200 crore of EBITDA. So I hope we will factor all of that before diluting because, you know, equity is appreciated. Absolutely. Like I said, and Rudra will tell you the details more about it. We are very clearly aware of our cash flows. We are aware that we have huge leverage in debt. And like I said, this is an enabling resolution, and we will try to do minimum dilution, maximum return on investment and balance Rudra will address. So let me take it from Doctor.

52:39 Devlin, Saurabh. Saurabh, as I said earlier, INR 800 crores of CapEx is lined up for the next three years. And as you said, INR 150 crores generated every year for the next three years, close to INR $4.50 crores. But INR 800 crores doesn't include the INR $2.50 crores of deposit that we have to pay to women. So for the announced projects, my internal approvals with the debt leverage that I have is totally tied up for the next three years. Now coming to the INR 700 crores enabling resolution, like Doctor. Devina mentioned, we are only looking for basically looking for brownfield projects. For the brownfield projects, it is an equity expansion that we have to do. So that can only come through the internal accruals or equity infusion.

53:29 So that's why we have kept that enabling resolution in place. Having said that, once the asset gets finalized, we will see at the current cash position how much to raise and then we will see that the minimum dilution is there for the existing shareholders. Great. That's very helpful. Thank you, Doctor. Thank you, Uttwaji. Wish you all the best. Thank you. Thank you very much. Next question is from the line of Neelam Panjabi from Perpetuity Ventures. Please go ahead. Thanks for the opportunity and congratulations on some great set of numbers. My first question my first question is, in the last earnings call, you had mentioned that we would... You know, if you had indicated we would get to the 70% occupancy by q two.

54:15 So are we on track to get there? Yes. We are. Perfect. And secondly, just to zoom out a little bit, you know, as we get to 900 to nine fifty beds in this standalone facility in the next eighteen to twenty two months, Three to five years out at 85% census, 70% optimum occupancy and probably, you know, 4% to 5% ARTEMIS we can essentially get to a INR 2,000 crore applied. Is that is that a valid assumption only from the Gourdand facility? Yes. It is possible. Absolutely. Great. And at that level, at that scale, what kind of margins that we can deliver with the, you know, operational efficiency playing out given it's a brownfield 23%.

55:07 It's up... Upwards of 23%, I would say. Got it. And lastly, if I just back calculate the numbers for the quarter, it seems that the confidence in light has... The performance has been a little muted. So what exactly is happening there? So I can just, you know, give some indication. No. So the like I told you that they all have some kind of capacity constraint over a period of time because these are short units, small units. So basically, they have served us two purpose. One is hub and spoke. We were a stand alone brand in Gurgaon. So now we have a large number of patients coming in from South Delhi and Manasar and other places where presence was a little less.

55:53 Second is our idea, which I mentioned in my previous question, is after a period of time, it could be three to four years, when you have grown these places, broken even, made some money and then we try to consolidate it. So whether two centers get consolidated into one so that we bring in working efficiencies, increase the bed in one center, bring the two of them together or kind of integrate them with a bigger hospital we are now integrating the New France Colony Center with the East of Kalaad Center, which is a South Delhi center. And going forward, we may run it as a stand alone or integrate it with our Vivance Hospital, which will come with six fifty beds. Because sometimes what happens, the rentals and the cost of manpower will start outdoing the your top lines and your bottom lines because the bed capacity is limited in these areas.

56:55 We lot doing have are So hub and spoke model. And after a point of maturity, we could consolidate few of the centers with each other. So that's an ongoing business call we will continuously take depending on how we want to do. But as you would have realized in the last eighteen, nineteen years, our we are known for tertiary and quaternary health care. So that is the focus and that is where we will continuously push our growth engine. So I hope I have made myself clear. Thank you.

57:43 Yes. Thank you very much and all the best. Thank you. Thank you. Next follow-up question is from the line of Aditya Chera from Inquired Asset Management. Please go ahead. Hi. This question is on the CapEx number of INR 800 crores. As we can see in the annual report, a deposit of around INR 130 crores is already paid. And if I break the INR800 crore and keep INR120 crore aside for Tower 4, whether this INR125 crore already paid is also part of the INR800 crore? And since Raipur is already operational, how much of the CapEx is attributable to Raipur? So, Aditi, let me answer you the breakup of this INR 800 crore.

58:31 So INR 120 is for Raipur, INR $3.50 to INR $3.60 is for women's, which doesn't include the deposit portion of it. This is the pure, pure CapEx. So this INR 120 and INR $3.50 is close to INR $474.80. INR 120 crores for your tower core, which is close to INR 700 crores, INR 100 crores to 120 crores for your replacement CapEx over the period of next three years. So that is the math behind INR 800 crores. Having said that, the deposit is over and above this, which is close to INR $2.50 crores, out of which we have already paid INR 130 crores. Got it, sir. Thank you. Thank you. We take the last question from the line of Andesh Vasallia from Spark PWM. Please go ahead.

59:22 Yes. I hope I'm audible, and thank you for the opportunity again, but my question now just got answered. So thank you so much. Thank you. Thank you very much. With that, I now hand the conference over to the management for closing comments. I would like to thank everyone for joining the call. I hope we have been able to respond to all your questions adequately. For further information, we request you to please get in touch with me or our Investor Relations team. Stay safe, stay healthy. Thank you once again for joining with us. Thank you. Thank you. Thank you very much. On behalf of Anandrati Shares and Stockbrokers Limited, that concludes this conference.

1:00:09 Thank you for joining us, and you may now disconnect your lines. You. Thank you very much. Thank you. Bye. Thank you, ma'am. Bye bye.