Artemis Medicare Services Ltd — Q4 FY26

Artemis Medicare Services Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Q-lmefzcyEU Published: 2 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Artimus Medicare Services Limited Q4 FI26 earnings conference call 0:10 10 seconds hosted by Anvati Shares and Stock Broking Limited. As a reminder, all participant lines will be in the listenon mode and there'll be an 0:19 19 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:26 26 seconds operator by pressing start then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:34 34 seconds hand the conference over Mr. Himmana Binani from Manati Shares and Stock Broking Limited. Thank you and over to you Mr. Banani. 0:43 43 seconds Thank you Nav. Good day everyone and welcome to the fourth quarter and full year FI26 earnings conference call of 0:52 52 seconds RTM Medicare Limited hosted by Anandrati Shares and Stock Broking. From the 0:58 58 seconds management we have Dr. Deina Chakrai the managing director, Mr. Sanjie Kotari the 1:05 1 minute, 5 seconds CFO of the company and Mr. Rudran Narayan Nacharia the head investor relations. 1:13 1 minute, 13 seconds I would like to thank the management for giving us this opportunity to host this call. 1:19 1 minute, 19 seconds We'll begin the call with a brief opening remarks from the management post which we will have a session open for 1:26 1 minute, 26 seconds Q&A. Without further ado, I would like to hand the call to Miss Deina. Thank you and over to you ma'am. 1:35 1 minute, 35 seconds Thank you Himmanshu. Uh good morning uh ladies and gentlemen and uh we are pleased to share our financial and operational performance for the quarter. 1:46 1 minute, 46 seconds As we wrap up FY26, I would like to begin by providing an overview of the health care sector and the overall 1:55 1 minute, 55 seconds hospital industry. The healthcare landscape continues to evolve driven by both rising demand for specialized services and technological advancements. 2:08 2 minutes, 8 seconds The healthcare landscape is evolving with a growing preference for high value treatments as patients become more 2:16 2 minutes, 16 seconds informed and discerning in their high uh in their choices. Additionally, government policies and tariff 2:25 2 minutes, 25 seconds adjustments in healthcare have introduced certain challenges in the short term. But we are very confident in 2:33 2 minutes, 33 seconds our ability to navigate these challenges through our operational agility and 2:40 2 minutes, 40 seconds strategic cost management. For FY26, we delivered a strong performance, 2:47 2 minutes, 47 seconds marking another year of growth despite external challenges. Our consolidated 2:55 2 minutes, 55 seconds revenue from operations for FY26 was INR 1,081 3:02 3 minutes, 2 seconds crores reflecting a year-on-year growth of 15.4%. 3:08 3 minutes, 8 seconds This growth uh was primarily driven by strong performance in our core 3:15 3 minutes, 15 seconds comp uh uh in our core specialties including cardiology, oncology and orthopedics coupled with an improved 3:24 3 minutes, 24 seconds pair mix and an increased uh and an increase in uh high complexity procedures. Our ebitter for the year was 3:33 3 minutes, 33 seconds INR 218 crores with an ebitter margin of 20.2%. 3:40 3 minutes, 40 seconds This reflects our focus on operational efficiencies and disciplined cost 3:46 3 minutes, 46 seconds management across our network of hospitals. Our profit after tax for FY26 3:55 3 minutes, 55 seconds was at INR104 crores showing a year-on-year increase of 26.2%. 4:04 4 minutes, 4 seconds our quarterly performance highlights. Uh turning to quarter 4 FY26, we posted a consolidated revenue from 4:13 4 minutes, 13 seconds operations of INR 279 crores reflecting a growth of 16.4% 4:22 4 minutes, 22 seconds compared to the same quarter of last year. This growth was primarily driven by higher patient volumes particularly 4:31 4 minutes, 31 seconds in our high margin specialties. Our EITA in the quarter was INR 59 crores with an EIA margin of 21.3%. 4:46 4 minutes, 46 seconds Our quarter witnessed a strong increase in contribution from both domestic and international patients. Profit after tax 4:56 4 minutes, 56 seconds for quarter 4 FY26 was INR 30 crores representing a growth of 32.1% 5:04 5 minutes, 4 seconds from corresponding quarter of previous year. 5:09 5 minutes, 9 seconds This strong PAT growth is a testament to our ability to scale efficiently while maintaining financial discipline. 5:20 5 minutes, 20 seconds Operational highlights. Uh our flagship hospital in Gurugram continues to deliver strong performance with 5:29 5 minutes, 29 seconds occupancy level reaching 64.6 64.6% in quarter 4. This reflects sustained 5:39 5 minutes, 39 seconds demand for specialized and advanced health care services across key therapeutic areas particularly in 5:48 5 minutes, 48 seconds cardiology, oncology and organ transplant. 5:53 5 minutes, 53 seconds Our average revenue per occupied bed for quarter 4 was INR 84,571 6:03 6 minutes, 3 seconds showing a 7.3% increase compared to quarter 4 of FY25 6:11 6 minutes, 11 seconds driven by an enhanced case mix and higher paying patients 6:17 6 minutes, 17 seconds in the in line with our commitment to quality and operational Excellence. 6:23 6 minutes, 23 seconds Artimus Medicare received several prestigious certific certifications in FI26. 6:31 6 minutes, 31 seconds Most uh notably, we received the platinum green building certification while which entities um which entitles 6:40 6 minutes, 40 seconds us to a 15% increase in F at no additional cost. This will allow us to add 100 beds to our Gurugram facility. 6:51 6 minutes, 51 seconds further enhancing our capacity. 6:55 6 minutes, 55 seconds Just to make a point here, our international patience despite the West Asia war continues to grow and this 7:04 7 minutes, 4 seconds financial year showed a growth of 26.9%. 7:10 7 minutes, 10 seconds uh the countries that we are witnessing high demand apart from uh Middle East is 7:16 7 minutes, 16 seconds Africa CIS reflecting growing trust in our clinical capabilities and our 7:23 7 minutes, 23 seconds clinical standards. This strong performance highlights our established position in medical value travel segment 7:31 7 minutes, 31 seconds and the strength of our g global brand backed by continued focus on clinical excellence, patient experience and 7:40 7 minutes, 40 seconds targeted international outreach. We remain well positioned to drive further growth in this segment. 7:48 7 minutes, 48 seconds We also continue to make steady progress on our expansion initiatives. Our 300 7:55 7 minutes, 55 seconds bed super specialty hospital in Raipur is on track to commence operations in 8:02 8 minutes, 2 seconds quarter 1 of FY27 marking a key milestone in our growth journey. In addition, we are advancing 8:11 8 minutes, 11 seconds our plans for the 650 bed facility in South Delhi which is expected to be commissioned in FY29, 8:20 8 minutes, 20 seconds further strengthening our presence in key markets. 8:24 8 minutes, 24 seconds On the clinical front, we continue to make achievements in advancing patient care. We have launched several new 8:33 8 minutes, 33 seconds programs including India's first private geriatrics and longevity department as 8:40 8 minutes, 40 seconds well as a collaboration with Kim's Hyderabad for advanced heart and lung transplants. 8:46 8 minutes, 46 seconds These initiatives highlight our commitment to providing cutting edge care to our patients. 8:54 8 minutes, 54 seconds Our focus on digital transformation remains strong. In FY26, we made 9:02 9 minutes, 2 seconds significant investment in technology to improve both patient care and operational efficiency. We successfully 9:11 9 minutes, 11 seconds implemented AI assisted triage systems across our hospitals which have already 9:18 9 minutes, 18 seconds started to show positive results in reducing weight times and improving patient flow. Additionally, we are 9:27 9 minutes, 27 seconds expanding our use of data analytics to optimize patient pathways and support 9:34 9 minutes, 34 seconds clinical decision making. As part of our ongoing commitment to sustainability, we 9:41 9 minutes, 41 seconds have taken several steps to reduce our environmental footprint. In addition to 9:48 9 minutes, 48 seconds the green building certification I mentioned earlier, we have also focused on energy efficient systems across our 9:58 9 minutes, 58 seconds hospitals and implemented waste reduction programs. These initiatives 10:04 10 minutes, 4 seconds are aligned with our long-term goal to contribute positively to the environment 10:11 10 minutes, 11 seconds while continuing to deliver worldclass um healthcare services. 10:18 10 minutes, 18 seconds Looking ahead, looking ahead in F127, uh, FI27 will be an exciting year for 10:26 10 minutes, 26 seconds Arteimus Medicare. As we continue to execute on our growth strategy, we 10:33 10 minutes, 33 seconds remain focused on increasing our pay our bed capacity with plans to expand from 10:40 10 minutes, 40 seconds our current capacity of 800 beds to 2,000 beds by 2029. 10:48 10 minutes, 48 seconds The commissioning of our Rayur and Saud Delhi facilities will play a key role in 10:55 10 minutes, 55 seconds this expansion. We are confident that these initiatives will drive strong 11:02 11 minutes, 2 seconds growth in the years to come. We also remain committed to enhancing our 11:09 11 minutes, 9 seconds digital capabilities, improving patient outcomes, and maintaining operational excellence. 11:16 11 minutes, 16 seconds With the board's approval for a fundraising initiative up to INR 700 crores, we are well positioned to 11:26 11 minutes, 26 seconds support our expansion efforts and continue to deliver value to all our stakeholders. 11:34 11 minutes, 34 seconds With that, I will now open the floor for any questions. Thank you. 11:41 11 minutes, 41 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star 11:48 11 minutes, 48 seconds and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 11:56 11 minutes, 56 seconds Participants are requested to use handsets while asking a question. 12:01 12 minutes, 1 second Ladies and gentlemen, we will wait for a moment while the question assembles. 12:09 12 minutes, 9 seconds Participants, you may press star and one to ask a question. 12:21 12 minutes, 21 seconds The first question is from the man of Sanjay Sha from KSA shares and securities. Please go ahead. Yeah, good morning to all and uh Dr. 12:30 12 minutes, 30 seconds Thanks for a wonderful uh explaining the opening on the opening remarks about hospital and healthcare industry in India and ma'am I really appreciate your 12:39 12 minutes, 39 seconds presentation showing the critical care success story of our hospital. Uh ma'am my question was regarding u uh can you 12:48 12 minutes, 48 seconds highlight on u uh critical capability of the hospital how we are progressing on that side? 12:56 12 minutes, 56 seconds Uh so uh as As you're aware 13:12 13 minutes, 12 seconds ma'am can you hear us participants please stay connected while 13:18 13 minutes, 18 seconds we rejoin Dr. Now 13:26 13 minutes, 26 seconds [music] 13:31 13 minutes, 31 seconds [music] 13:35 13 minutes, 35 seconds It will take me. [music] 13:45 13 minutes, 45 seconds [music] 13:55 13 minutes, 55 seconds [music] 14:01 14 minutes, 1 second [music] 14:10 14 minutes, 10 seconds [music] 14:13 14 minutes, 13 seconds Ladies and gentlemen, thank you for your patience. We have the line for the for Dr. the ma'am I'm reconnected ma'am please go ahead sorry for the drop uh sorry and regret 14:22 14 minutes, 22 seconds the drop uh so Sanjay G you were asking about our critical care could you just repeat the question quickly one more time 14:30 14 minutes, 30 seconds yeah yeah yeah it was my question was more related to the critical care capability what we have developed and what we have planned ahead that includes 14:39 14 minutes, 39 seconds the whole healthcare ecosystem yeah so you know critical care I would uh divide into two types. One is a strong 14:49 14 minutes, 49 seconds emergency care and the second is the in-house critical care. So as you are 14:55 14 minutes, 55 seconds aware that is known for um our uh uh you know critical care in Hana. We are not 15:02 15 minutes, 2 seconds only treating our own patients but we we uh uh you know we are the referral center for a large number of critical 15:09 15 minutes, 9 seconds care patients from across Hana. So we have 1 is to three critical care beds uh 15:16 15 minutes, 16 seconds and uh um uh one is to three critical care beds and uh we have a great network 15:23 15 minutes, 23 seconds of uh uh transports which deliver uh which delivers patients from secondary, primary and other tertiary care 15:29 15 minutes, 29 seconds facilities to our hospital. Uh we have a large team of critical care uh specialists uh full-time in house and we 15:39 15 minutes, 39 seconds have various types of critical care. uh one is like a general critical care. Then we have a surgical critical care. 15:46 15 minutes, 46 seconds We have critical care for transplants. 15:48 15 minutes, 48 seconds We have critical care for um uh uh cardiovascular surgeries. We have critical separate critical care for 15:55 15 minutes, 55 seconds neurosurgeries. We have critical care for pediatric surgeries. We have p separate uh uh niku and piku which is level four in terms of critical care. 16:04 16 minutes, 4 seconds And in terms of our emergency services, we have actually a very AIdriven AI uh emergency facilities wherein we can pick 16:14 16 minutes, 14 seconds up the patient from their house and the AI tool uh guides our paramedics and our junior doctors in the ambulance and 16:22 16 minutes, 22 seconds connects them with the uh ICU and the emergency senior doctors. So actually the treatment starts in the ambulance as 16:30 16 minutes, 30 seconds such so that we do not waste any time if you are caught in traffic there is no delay in uh patient treatment. So we 16:38 16 minutes, 38 seconds have progressively and each year we are enhancing our number of critical care beds our critical care super specialty. 16:46 16 minutes, 46 seconds So that continues to be a big ticket item uh for us in terms of delivery of care being a quartinary care hospital. 16:56 16 minutes, 56 seconds Right. Right. Doctor, so my next question was regarding our uh international patient. We we have been growing in spite of uh war and uncertain circumstances globally. Yes. 17:06 17 minutes, 6 seconds How how we can look our hospital in from uh by 2029 when we will start a geographical diversification to south uh 17:16 17 minutes, 16 seconds from north to uh uh other areas a new uh geographies in India also and is there 17:23 17 minutes, 23 seconds any scope of international pressure because we are we are the highest among the industries. So can you highlight? 17:30 17 minutes, 30 seconds So basically our endeavor Yeah. 17:33 17 minutes, 33 seconds Yeah. So our end goal would be to remain at uh the same 30 31% of revenue coming 17:40 17 minutes, 40 seconds from international patients irrespective of where we are and how our topline moves. So every year we add more 17:48 17 minutes, 48 seconds countries to our list. We increase ourus with various international uh governments. So we have a full strategy 17:56 17 minutes, 56 seconds and we have a separate international team who works only towards that. So our strategy will continue to have 30 to 31% 18:05 18 minutes, 5 seconds of revenue uh from the international like we have today. 18:11 18 minutes, 11 seconds So doctor now adding our bed in South Delhi will help us to increase our ARU from here because going to large metros from uh NCR regions. 18:22 18 minutes, 22 seconds No. So you know in we are in NCR and we have the highest RO in NCR. we have higher than even Delhi but we have been 18:31 18 minutes, 31 seconds growing 7 to 8% year on year on our AR pops. So that will be the trend if not more. Uh definitely Delhi is a higher uh 18:41 18 minutes, 41 seconds Saud Delhi is a higher R pop areas but in Gura we beat even the Saudi Delhi AR pops because of our mix of patients our 18:50 18 minutes, 50 seconds high-end surgeries and our efficiencies of turning the web around you know the better turnaround time and we will 18:57 18 minutes, 57 seconds continue to do so and increase like how we are doing 7 to 8% year on year. 19:03 19 minutes, 3 seconds Dr. My last question was regarding can you touch upon our Malaysia's uh bad capacity increase from 80 to 110 and how we are doing over there. 19:13 19 minutes, 13 seconds So the first hospital is broken even and is making a profit. The second hospital has just started. So we are already 19:20 19 minutes, 20 seconds beginning to get the fee for the second hospital. So we are on a monthly fee for running and giving our so you know 19:28 19 minutes, 28 seconds giving our expertise to these hospitals and we are pretty much on track uh uh we are pretty much on track with the first hospital and we are pretty much on track 19:37 19 minutes, 37 seconds with the second hospital which has just started in April. 19:41 19 minutes, 41 seconds Thank you very much very helpful. Thank you very much. Thank you. Thank you. Thank you. 19:48 19 minutes, 48 seconds Next question is from the line of Adita from Inqu Asset Management. Please go ahead. 19:54 19 minutes, 54 seconds Hi, good morning. Congratulations on this numbers. 19:58 19 minutes, 58 seconds Uh I have two questions. Uh first was on the uh women's project. Uh would you be able to share any project details uh 20:06 20 minutes, 6 seconds that are outlined with respect to what should be the capeex per bed etc. and how the facility will come over in phases. Uh and the second question was 20:15 20 minutes, 15 seconds about the uh AETA margin profiles across the hospital cardiac care and daffodil segment and the reason for this is 20:24 20 minutes, 24 seconds whether uh the losses from the Raipur facility will uh impact the AITA growth or they will be offset by uh the Gorda 20:32 20 minutes, 32 seconds operating leverage and uh uh any losses from napodils cardiac etc. So if you can highlight on these. 20:39 20 minutes, 39 seconds So I I will answer the second question first and the for the first the capsics and all I'll hand over to Rudra uh to give you a detail. For the second 20:48 20 minutes, 48 seconds question, uh our this thing is there will be certainly some losses uh in uh Rifle but if you look at our projections 20:57 20 minutes, 57 seconds uh our increase in EITA will will continue because uh you know our our occupancy in the Gorga hospital is 21:06 21 minutes, 6 seconds increasing. Our mix of cases uh you know is becoming better. Uh the new towers 21:13 21 minutes, 13 seconds are reaching their maturity. So the EITA growth will continue in the coming financial year despite losses in Raipur, 21:22 21 minutes, 22 seconds daffodil and cardiac care have uh are all EITA uh break even and making small profits. So that's actually a non-issue 21:32 21 minutes, 32 seconds in this uh whole piece. Uh our endeavor would be to offset the uh rip losses 21:39 21 minutes, 39 seconds with strong growth in EITA in our gau facility. So that's to answer your second question. For the first one, the 21:46 21 minutes, 46 seconds project highlight I can give you that we have already uh uh we are in the process of admitting our um drawings, our plans 21:55 21 minutes, 55 seconds to the MCD post which the demolition of the old structure is going to start. We are pretty much online in terms of 22:03 22 minutes, 3 seconds timelines for these actions. But in terms of capeex uh so it's a 650 ved facility which will start in in two 22:12 22 minutes, 12 seconds phases of 450 and 200 but the capeex and other details I'll hand over to rudra to uh reply to 22:19 22 minutes, 19 seconds hi adita this side [clears throat] for the capeex portion adita there is a two two parts to it the first part for 22:25 22 minutes, 25 seconds around 350 for around 450 beds the cex would be to the tune of 350 crores and for the second 200 beds it would be 22:33 22 minutes, 33 seconds another 150 to 160 crores total would be 500 crores for 650 beds which will be close to 75 lakhs to 80 lakhs per bed. 22:42 22 minutes, 42 seconds So that is on the capeex part of this Arya. Any questions uh regarding this? 22:48 22 minutes, 48 seconds This includes everything right? Land, equipment etc. The full project. 22:53 22 minutes, 53 seconds So land and building is owned by the trust. We have we have in our portion we had the interiors and the equipment. 23:00 23 minutes These include the interiors and the equipments. 23:04 23 minutes, 4 seconds Got it. And lastly on the additional F at the code facility uh would you be adding those in FI27 or it will be in phases? 23:14 23 minutes, 14 seconds So we are basically looking at both all the options. We have a little pipeline uh with some other opportunities. So and 23:22 23 minutes, 22 seconds we have this option of um 100 bed facility here. So we are we are kind of uh taking that call whether to start 23:31 23 minutes, 31 seconds this 100 uh bed facility in the uh in the current financial year or to take up another if possible take up another 23:39 23 minutes, 39 seconds brown field or a green field project if that's available. So that we will that we will clear uh in the next few weeks 23:47 23 minutes, 47 seconds and we'll come back to you and you'll hear it from us very soon. Sure. Thank you. That's it. 23:54 23 minutes, 54 seconds Thank you. 23:57 23 minutes, 57 seconds Next question is from the line of Adesh Bossalia from Spark. Please go ahead. 24:04 24 minutes, 4 seconds Uh hello uh thank you for the opportunity and congratulations uh to the management for excellent set of numbers and ending by 26 on such a high 24:12 24 minutes, 12 seconds note. Uh I had a couple of questions. So firstly on the IITA margins uh we saw our Q4 IITA margins inching up to 18 and 24:21 24 minutes, 21 seconds a half% the levels we saw in the Q Q2 of this financial year. So this is this 24:29 24 minutes, 29 seconds will be continuing for the next step at 2728 we will be maintaining the like continuing the gura facility at this at 24:36 24 minutes, 36 seconds such high margins for the entire year or we should expect some similar end of FI26. 24:45 24 minutes, 45 seconds uh we will not only try to maintain it but we will try to better it with some plans that we have. So you will see this continuous growth in the present financial year also. Yes. 24:56 24 minutes, 56 seconds Okay. And on a blended level like after the Raipur comes up uh so I think Raipur would be like commercialized in Q1. So 25:04 25 minutes, 4 seconds the three quarters of FI27 would receive the entire impacts of Raipur and I think uh the break even is expected in uh 15 25:13 25 minutes, 13 seconds to 18 months if please correct me if I'm wrong over there. Uh so what should be the blended level on the margins that we can expect. 25:20 25 minutes, 20 seconds So Ad Rudra said so as Dr. Deina mentioned we will be continuing this this 21.2 or the 19.4% 4% without the 25:30 25 minutes, 30 seconds other income for Gurau facility and it will uh the margins will expand only over the period of time but having said 25:38 25 minutes, 38 seconds that like we had indicated earlier there would be close to 18 to 20 crores of losses from Raipur so that we are 25:45 25 minutes, 45 seconds standing uh with the same levels 80 to 85 crores of revenue top line for Raipur for FY27 and 18 to 20 crores of losses. 25:55 25 minutes, 55 seconds So that overall mix will will be putting the beta maybe a one or one one to 1.5% lower because of these losses. 26:06 26 minutes, 6 seconds Okay. Okay. Makes sense. Uh second question was on the operating bits. Uh right now we exceeded 26 at 544 26:14 26 minutes, 14 seconds operational bits. So how are we looking this trend inching upwards from here on or this would be maintained like uh if you can share some uh color on this. 26:24 26 minutes, 24 seconds So 546 beds which you saw this year immediately rifle starts with 200 more beds there is an option of adding 26:32 26 minutes, 32 seconds another 100 beds in our uh facility and or picking up a uh brown or green seal 26:39 26 minutes, 39 seconds project. So this bed expansion like our commitment is 2,000 beds by 2029 and you 26:46 26 minutes, 46 seconds will see the beds increasing in phases as we move to 2029 with 2,000 plus beds definitely by 2029. 26:56 26 minutes, 56 seconds Uh yes sir that is uh that that I understood but I was asking on the operational bit. So from current Gura facility we are we had an average operational beds of 54426. 27:08 27 minutes, 8 seconds So on that I was uh you know I wanted a bit of a color that how much you know room is there for us to grow this 27:15 27 minutes, 15 seconds operational bits and similarly for also like from 200 beds coming up how many beds will get operationalized in FI27. 27:23 27 minutes, 23 seconds Yeah. So for GA I'll stick to Ga facilities first. We have the ability to start 100 more beds but like I had 27:30 27 minutes, 30 seconds mentioned earlier today we are at 64.6% occupancy. The moment we had 70% occupancy for a quarter we are going to 27:39 27 minutes, 39 seconds be opening 50 then another 50 beds that is to put the gurau in perspective as we speak our operation our occupancy is 27:47 27 minutes, 47 seconds going up it has moved from 60 because we have opened new towers right it has moved from 60 to 64.6% 6% and we are 27:55 27 minutes, 55 seconds keeping an eye at 70%, one quarter we will open 50 more meds and then 50 more that's for Gura for the 200 beds which 28:04 28 minutes, 4 seconds we are starting in quarter one of FY 27 in Ripur the first phase we'll see 150 28:12 28 minutes, 12 seconds beds operational and within uh 3 to four months we will be adding 50 more beds 28:19 28 minutes, 19 seconds because we are looking at it as a high volume market And uh so I I think in two 28:25 28 minutes, 25 seconds quarters you can expect u all 300 beds operational. 28:31 28 minutes, 31 seconds Okay, that that's great to hear. And lastly the capeix figures that Rudra mentioned regarding the women's facility. So how much of that if you can 28:40 28 minutes, 40 seconds just share a timeline that how that would be incurred over the next two years. 28:45 28 minutes, 45 seconds So Adesh Rudra des so uh these capeex uh for the for the capeex portion will come 28:51 28 minutes, 51 seconds after FI27 only because interior and equipments have to be placed and we are planning to start it by FYI 29. So the c 28:59 28 minutes, 59 seconds apex portion for women's piece from artimis side will come into picture after in the mid of FY28 because we have 29:07 29 minutes, 7 seconds to start the interiors and the uh and the equipment for the advance portion that is there for which is linked to the building milestones that we have started 29:15 29 minutes, 15 seconds paying it slowly and gradually because the building has to be built and that advance will be adjusted when once the hospital gets operationalized over a period of 8 to 10 years. 29:27 29 minutes, 27 seconds Okay, got it. So the FI27 I think there would be a very capex right year for us like there won't be any significant 29:34 29 minutes, 34 seconds number coming up in the books in FI28 the major numbers would be enjoyment no only the replacement payex of gurau 29:42 29 minutes, 42 seconds and uh and of ripur because 50 60% we have already spent out of 110 crores so rest 50 60 crores so total would be 29:51 29 minutes, 51 seconds close to 100 100 crores maybe yeah yeah that's right in 2700 crores is the uh capeex figure that would be coming in. 29:59 29 minutes, 59 seconds Correct. Correct. Correct. 30:01 30 minutes, 1 second Okay. Got it. Uh there are couple of more questions. I will fall back and you Thank you so much. Sure. Thank you. 30:10 30 minutes, 10 seconds Thank you so much Adesh. 30:12 30 minutes, 12 seconds Next question is from N of Shankar from Capital. Please go ahead. Hello. 30:20 30 minutes, 20 seconds Yeah. Hi. Good morning. 30:22 30 minutes, 22 seconds So I have a couple of questions. uh first on the uh can you give a bit more color on how was the growth in international patient 30:30 30 minutes, 30 seconds in the last quarter which is Q4 FI26 and what are the trends that you are seeing on that front in the current quarter Q1 30:38 30 minutes, 38 seconds FI27 so the uh the last the third month uh of 30:45 30 minutes, 45 seconds the last quarter which was in the month of March we saw a 15 to 18% dip all uh in the international patients 30:54 30 minutes, 54 seconds which has turned around as we uh in the month of April and the recovery had started in the month of April and as we 31:02 31 minutes, 2 seconds speak in the uh sit in the month of May we are almost closing on to almost 90% 31:08 31 minutes, 8 seconds recovery uh as we speak now uh so uh so you're saying that the 31:19 31 minutes, 19 seconds impact of war which was seen in March has been almost subsided in the current quarter And we are on almost back on track for now. 31:27 31 minutes, 27 seconds Yes. Unless something new happens, we are back on track. Yeah. 31:32 31 minutes, 32 seconds Okay. And the countries that you mentioned that you are looking to add going forward. What are the other countries that we are seeing strong demand from Middle East? 31:40 31 minutes, 40 seconds We are not only we are not only confined to Middle East, we are confined to a lot of our business comes from Africa, CIS, 31:48 31 minutes, 48 seconds the SAC nations. Now we are also looking to open earlier we had only east Africa now we have also opened large number of 31:56 31 minutes, 56 seconds countries in west Africa and the franophhone nations we are also looking at now at Canada and uh we are looking 32:04 32 minutes, 4 seconds at some Nordic countries where patients are coming in for high-end treatments so every year we add a couple of countries 32:13 32 minutes, 13 seconds if not more and uh so that this exercise and this continuity is maintained and any problem in one region does not 32:22 32 minutes, 22 seconds affect the overall um international flavor for us. 32:28 32 minutes, 28 seconds Okay. So if you can share what is the proportion of Middle East patient in our current international patient if you can share that color. 32:39 32 minutes, 39 seconds No, I would say uh I mean uh how how much is this? 3%. 30%. 30%. Okay. 30%. 32:48 32 minutes, 48 seconds Yes. 32:50 32 minutes, 50 seconds Okay. Understood. And you touched upon that you see the CA case mix uh improving. So if we are maintaining our 32:58 32 minutes, 58 seconds international patient at 31 32%. So how do you see other segments of the case mix uh in the next 3 four years? 33:08 33 minutes, 8 seconds See as you keep adding high-end facilities, a highend text, you know, case mix not only for international but domestic. So we have seen a surge in our 33:17 33 minutes, 17 seconds domestic numbers and in uh we are also seeing continuously seeing a surge in the high-end uh uh you know patients in 33:25 33 minutes, 25 seconds the domestic which is also a very big welcome and that had actually offset uh uh some of the international dip which 33:34 33 minutes, 34 seconds we saw in March of last quarter. So basically uh you know high-end surgeries like whether it is neurosurgeries, 33:42 33 minutes, 42 seconds cardiac surgeries, encoies, transplants we are seeing uh increase both domestic especially domestic as 33:50 33 minutes, 50 seconds well as international in in these areas which is uh which is a very uh welcoming trend for us. 33:58 33 minutes, 58 seconds Okay. Okay. So is it fair to say that you can see government mix uh going down uh in the next few years? 34:07 34 minutes, 7 seconds See the government mix in terms of percentage might be the same as we're increasing the number of beds you know 34:14 34 minutes, 14 seconds but uh in in terms of uh percentage because sometimes when you're opening new beds you want to prevent uh uh free beds I mean beds which are not occupied. 34:25 34 minutes, 25 seconds You don't want a situation like that. uh but overall if you look at the uh businesses our endeavor continues to 34:33 34 minutes, 33 seconds have cash TPA and international uh more than any empanel business but the good news is also the government is 34:42 34 minutes, 42 seconds also as you're aware is revising the rates and we are sometimes we are cherrypicking some of the uh you know 34:49 34 minutes, 49 seconds the investigations and treatments which are almost close to our VA rates. So it's it's it's actually a strategy but 34:57 34 minutes, 57 seconds uh we definitely don't want the government business to come up and it's not coming up. Uh but uh we keep moving around in a manner so that um no dead space empty as we increase capacity. 35:11 35 minutes, 11 seconds So that's basically what I wanted to say. Yeah. Yeah. 35:14 35 minutes, 14 seconds Understood. So my next question is around the gurugram facility. uh can you give any uh uh hardcore number around 35:22 35 minutes, 22 seconds the AIDA margin? How you see it going in the next 3 four years and mainly what are the improvement 35:31 35 minutes, 31 seconds drivers for that improvement in the AIDA margin from Gurugram facility. 35:36 35 minutes, 36 seconds So the Gurug ground facility will see aar northward of 20% if not more in the 35:44 35 minutes, 44 seconds coming years and this will be driven driven by three factors. The first one is a large number of high-end domestic 35:52 35 minutes, 52 seconds and international patients. Secondly is efficiency in our consumption. We have gotten our consumption down by one and a half 2% and that endeavor will continue. 36:02 36 minutes, 2 seconds And third will be uh basically as we have more facilities the corporate cost is going to get uh divided amongst the 36:11 36 minutes, 11 seconds various facility which today sits in Bura alone. So all these three will contribute to an upward of 20% of every 36:19 36 minutes, 19 seconds ina okay% sorry to interrupt. Can I request you to please come back for a followup? 36:28 36 minutes, 28 seconds Yes sure thank you. Next question is from the land of Anchelra from MK Global. Please go ahead. 36:36 36 minutes, 36 seconds Hi, thank you for the opportunity and congratulations on a good set of numbers. Uh thank you. 36:43 36 minutes, 43 seconds Could you could you ma'am could you please allude on the for on on the further scope of sort of improving our occupancy at Guruda unit. I was 36:50 36 minutes, 50 seconds observing that in the past our occupancies in the Gura unit has sort of hovered around the 63 64% range. Uh and 36:59 36 minutes, 59 seconds now that we'll add beds uh can occupancies go north of 70 odd percentage here onwards. 37:07 37 minutes, 7 seconds Yes. Yes. Absolutely. And uh that is what we are aiming and that's when we are also trying to open our new beds. So 37:16 37 minutes, 16 seconds we are looking and definitely by quarter two of uh the current financial year we are looking it uh to move to to touch 70 37:25 37 minutes, 25 seconds if not exceed it and uh because we have uh we have the numbers we know that it will be reaching at that and our 37:32 37 minutes, 32 seconds endeavor would be to at 70 75% which is optimum for us actually for for us for the last uh couple of years we have been 37:41 37 minutes, 41 seconds non-stop adding beds one tower then various floors in a tower and the second towers then opening various floors uh in 37:48 37 minutes, 48 seconds the towers. So when you see uh your base that is number of beds increasing the occupancy looks more or less the same 37:56 37 minutes, 56 seconds because our denominators gone becoming higher but now with all the beds open we are confident to reach 70 if not more by quarter two of this year. 38:09 38 minutes, 9 seconds Okay. Uh my second question is on the Rayur unit. you I think Rudra alluded that we'll we are expecting about 18 to 38:16 38 minutes, 16 seconds 20 K of losses which should be more than offset by Gura unit. Uh are there any 38:22 38 minutes, 22 seconds costs of doctors or or uh any other uh line item which are sitting in our uh console business right now since you're just about to start this unit? 38:34 38 minutes, 34 seconds No no no nothing. 38:36 38 minutes, 36 seconds Okay. Only once and we operationalize Rayur cost will sort of come in. 38:40 38 minutes, 40 seconds Yes. Yes. Yes. That's right. That's right. 38:44 38 minutes, 44 seconds Got it. Uh also uh ma'am, you alluded to certain government tariffs in the healthcare sector which has led to 38:51 38 minutes, 51 seconds certain challenges. Uh would you be able to elaborate on this? 38:56 38 minutes, 56 seconds No, I said some of the government tariffs has gone up. They have given up. Okay. The CHS pricing has has improved. 39:03 39 minutes, 3 seconds So that that would be beneficial. So they have revised for private uh sectors to take in government patients because there was a large number of rejection 39:11 39 minutes, 11 seconds from various hospitals. So they have uh revised it for the better. That's what I wanted to say. My apologies I got that 39:19 39 minutes, 19 seconds wrong. Uh the the next question that I had was on uh our case mix. Uh while you 39:26 39 minutes, 26 seconds alluded that you know our complex uh that the share of complex care beds or uh cases has sort of gone up. Uh if I 39:33 39 minutes, 33 seconds look at our numbers, our congo mix has sort of slightly dipped, not meaningfully but slightly dipped. Uh whereas our peer mix has trended. 39:41 39 minutes, 41 seconds The congo mix is basically the oncology one and there were two reasons for it. 39:46 39 minutes, 46 seconds One was there was a push back from the TPA for the imunotherapy you know the uh because they uh there has been a very 39:55 39 minutes, 55 seconds big fight between the hospitals and uh insurers on use of imunotherapy which is far more expensive than chemotherapy. So 40:03 40 minutes, 3 seconds this was a push back and imunotherapy uh uh of course the margins are less but the cost goes up the the top line moves 40:10 40 minutes, 10 seconds up. So we have uh now spoken with insurers and we have moderated the use of imunotherapy. So that is one reason. 40:18 40 minutes, 18 seconds Secondly in between a circular had come from the government regarding chemotherapy for government uh government patients which was not conducive for uh for private hospitals. 40:30 40 minutes, 30 seconds So all private hospitals at that point had stopped uh chemotherapy for these empanel patients till discussions um 40:39 40 minutes, 39 seconds were concluded and uh a conducive park was found for the hospitals and now we have restarted. So these were basically 40:48 40 minutes, 48 seconds transit transient and mainly for the oncology piece and uh yeah that's what I would like to highlight. 40:58 40 minutes, 58 seconds Great all the very best ma'am for the coming year. Thank you. Thank Thank you. Thank you. 41:06 41 minutes, 6 seconds Next question is from Anish Davari from ARA. Please go ahead. 41:13 41 minutes, 13 seconds Hi uh can you articulate your outlook on uh uh pricing uh growth in in your treatment given that uh uh two forces. 41:24 41 minutes, 24 seconds One is that number of bags which are being added by various hospitals as well as uh there's some level of uh uh 41:32 41 minutes, 32 seconds negotiations with health insurance industry including uh standard operating procedures uh reducing the waste and 41:39 41 minutes, 39 seconds fraud. So maybe if you can just articulate uh in your power of growth of 7 to 8% what kind of uh pricing uh or 41:46 41 minutes, 46 seconds inflationdriven pricing growth you're looking at. 41:49 41 minutes, 49 seconds So basically for our um uh uh pricing uh if you look at our competitors uh so we 41:58 41 minutes, 58 seconds are u slightly on the lower side as compared to our competitors. 42:04 42 minutes, 4 seconds uh this is uh but we build on it. We build on our our POP not through our price but through our efficiency and 42:11 42 minutes, 11 seconds case mix and uh we keep ourselves the uh incremental pricing which happens year 42:19 42 minutes, 19 seconds on year uh it is uh you know it is in the range of 3 to 5% actually 5% which finally comes down to 3% for us because 42:28 42 minutes, 28 seconds TPA and insurers have a lock in period of 3 years with a price. So the we get an 3% impact only from pricing uh 42:37 42 minutes, 37 seconds because government doesn't change and the TPA doesn't change. So only the cash and the international pricings uh so we get a 3% but we rather than increasing 42:47 42 minutes, 47 seconds the price we work on Kate's mix uh more deeply and in in terms of efficiency. So 42:54 42 minutes, 54 seconds whe whether it is the turnaround time of the beds whether it is the cost of consumption uh you know quickly how 43:02 43 minutes, 2 seconds quickly we can discharge a patient. So we work around those parameters rather than uh pricing. So to answer your question we are moderately priced lower 43:11 43 minutes, 11 seconds than many in our region uh I mean the big ones the big quarterin uh we are probably as much as medanta but cheaper 43:18 43 minutes, 18 seconds than a port or a max. So that's where we stand and we don't use pricing to drive our business. 43:27 43 minutes, 27 seconds Great. And lastly on this uh health insurance uh uh segment uh do they then favor you over others to the extent they 43:36 43 minutes, 36 seconds can influence the traffic or uh how is it uh negotiation with those guys? 43:42 43 minutes, 42 seconds So we have uh we have a good relation with all our uh uh insurance players. 43:49 43 minutes, 49 seconds Yes, they do uh you promote Artemis as a place but at the end of the day a 43:56 43 minutes, 56 seconds hospital which is 18 years old uh a lot of um choices are made by the patients 44:03 44 minutes, 3 seconds themselves but definitely the TPA the the TPA and the insurance business is a large chunk of business for us. 44:12 44 minutes, 12 seconds Okay, if I just squeeze one more this uh standard operating procedures and everything the GI council is working on, 44:19 44 minutes, 19 seconds how is that impacted uh your business and your peers business? Uh does it create an operating advantage for you because of that council? 44:28 44 minutes, 28 seconds Right. 44:28 44 minutes, 28 seconds So I am a part of that council in CI. I head the working group three uh where 44:35 44 minutes, 35 seconds which has been kind of moderated now by Mr. J state chairman of IRA. So I am a very much part of all of this and I can 44:44 44 minutes, 44 seconds only tell you there are five working groups working on various aspects. One is categorization of hospitals which 44:51 44 minutes, 51 seconds will uh give transparent pricing then you know ethical things between the insurers and the hospitals. So there are 45:00 45 minutes multiple such five agendas which five working groups and I can only tell you uh when all these groups are implemented 45:09 45 minutes, 9 seconds it will be a huge benefit for the hospitals and also a huge benefit for the insurers. It's going to be a win-win situation and uh luckily we have Mr. 45:19 45 minutes, 19 seconds State as in the center the GIC council. 45:22 45 minutes, 22 seconds So you know this is going to be a winning ticket for all hospitals uh because then we really don't have to uh 45:31 45 minutes, 31 seconds flog for um getting the right price or getting the renewals on time and so on and so forth which was which has been a 45:39 45 minutes, 39 seconds problem with the hospitals because the insurers you know they continue beyond 3 years do not give us price ris or or 45:47 45 minutes, 47 seconds they try to sometimes bully us to get low prices. So now there is going to be a huge amount of standardization and as far as Arteimus is concerned I can only 45:55 45 minutes, 55 seconds tell you this will be a new dawn in business for us uh because I'm very I'm working very closely with them. 46:03 46 minutes, 3 seconds Great. Thank you and wish you very good. Thank you. Thank you. 46:10 46 minutes, 10 seconds Next question is from the line of Adita from Railwood Capital. Please go ahead. 46:16 46 minutes, 16 seconds Uh good morning everyone. So first of all congrats on the strong performance. 46:20 46 minutes, 20 seconds I just want to get a better sense of the overall rier and succ 46:28 46 minutes, 28 seconds meaning meaningful capacity addition over the last year or so. One listed player has entered and few local hospitals have come up. So I just want 46:36 46 minutes, 36 seconds to understand like do you believe there is sufficient uh time demand in riper and chiller to absorb these new bed 46:44 46 minutes, 44 seconds additions without meaningful pressure across occupancies and uh when you think of your own ramp up do you see your growth coming 46:52 46 minutes, 52 seconds primarily from capturing share from existing players or your thesis is more that overall market is underpenetrated and will grow with new supply and who do 47:01 47 minutes, 1 second you see as key competitors in that market? 47:05 47 minutes, 5 seconds Okay. Um so uh going on to Rayur let me tell you Ryur is a market where every 47:12 47 minutes, 12 seconds tertiary and quartinary private player is looking at. So as we speak whether it is a money manipal whether it is a 47:20 47 minutes, 20 seconds lielawati every either they are buying land or signingus and so on and so forth and I predict Raipur to become something 47:29 47 minutes, 29 seconds a mini luckno going ahead today. They don't have a single um they have large number of hospitals but they do not have 47:37 47 minutes, 37 seconds a single so-called hospital with the right kind of an infrastructure all medical equipments and uh uh the right 47:45 47 minutes, 45 seconds kind of doctors right so like uh you know whether it is these are transplants whether high in neurosurgeries neuro interventions whereas there is a deep 47:54 47 minutes, 54 seconds penetration of insurance there is the the per capita income of chhattisgar especially Raipur is very I so our 48:03 48 minutes, 3 seconds strategy is to create Rayur hospital as a nodal hospital for Chhattisgarh because you know almost uh 60% of 48:11 48 minutes, 11 seconds patients from Chhattisgarh come to uh Bombay and Delhi for treatment. So and and and they are they do not get treated 48:20 48 minutes, 20 seconds in in their own state because of quity of care. So we are trying to position ourselves and have the first mover 48:27 48 minutes, 27 seconds advantage to getting all the patients who are moving out of Chhattisgarh to be treated in Chhattisgarh and uh 48:34 48 minutes, 34 seconds everybody's uh eyeballs are being grabbed by Rayur now all other big players. So we are trying to establish 48:41 48 minutes, 41 seconds um a first mover advantage in terms of name quality of care transparency in care and so on and so forth. So that's 48:49 48 minutes, 49 seconds the gist. We had actually before going into Raipur had done a complete market survey uh through PWC and the also the 48:58 48 minutes, 58 seconds good news is our partners who own the land and the building are the two most reputed doctors of Rayur. So there is 49:06 49 minutes, 6 seconds already uh so it's not like um a new territory for or I mean it won't be a totally an unknown territory the 49:14 49 minutes, 14 seconds hospital for the patients because our partners are the two topmost doctors of Rayur. So this is basically the gist that I wanted to give you. 49:24 49 minutes, 24 seconds Got it. Thanks. Just to follow up. So what is the capex of bed for the typos hospital and what will be the 49:32 49 minutes, 32 seconds specialtity mix and pair mix as it operationalizes. 49:37 49 minutes, 37 seconds So it will be between 110 to 120 crores is a capeex for a 300 bed uh facility 49:44 49 minutes, 44 seconds and uh and we are doing every so we are going to be the every specialty is going to be there in Raipur. We will be the 49:52 49 minutes, 52 seconds first hospital to have a PET CT scan you know in the hospital. Apart from that we will have radiotherapy, robotics, 50:00 50 minutes transplants you know all the things for which the people of Raipur are going out of Shatiskar or you know to get their 50:08 50 minutes, 8 seconds treatment. So we have identified that we have identified it district-wise what is the need so that this can become a central referral center um referral hospital for Chhattispar. 50:20 50 minutes, 20 seconds Got it. Uh one last question. Uh basically according to my research like uh there in terms of manpower s state 50:30 50 minutes, 30 seconds like such are there is difficulty in uh basically attaining specialized manpower in terms of doctors, nurses and skilled 50:37 50 minutes, 37 seconds technicians. So how is the artis team doing about uh hiring and basically retaining the specialist? 50:44 50 minutes, 44 seconds That was the first deep dive we had done apart from the financials of the market. 50:49 50 minutes, 49 seconds That's the first deep dive. So, Raiku has its own medical college, post-graduate college, three nursing colleges. So, all our uh resource heads 50:57 50 minutes, 57 seconds of departments, various department, they're all in place. So, all the letters have been rolled out and they will be joining from first week of June, 51:05 51 minutes, 5 seconds which is next month. Nurses are all been hired. So, uh you know there is no posity of medical manpower. Training is 51:12 51 minutes, 12 seconds ongoing to bring them to our level of expectations. that they are good quality people. They are doctors who are trained 51:20 51 minutes, 20 seconds in robotics, who are doctors who are trained in the you know very high-end cardiac interventions and uh they're all 51:27 51 minutes, 27 seconds there. So now uh because of the insight that we are providing we are happy to join us and they're all in place. 51:34 51 minutes, 34 seconds Sure. Thank you so much and all the best for the future. You thank you. Thank you. Thank you. 51:42 51 minutes, 42 seconds Next question is from line of Pratik Shasawa from NH. Please go ahead. 51:47 51 minutes, 47 seconds Uh yeah. Uh hello ma'am. Ma'am, what could be the realistic AR POB from uh Raipur facility in long run? 51:58 51 minutes, 58 seconds So we have looked at uh 35,000 33 to 35,000 plus to start with and then 52:05 52 minutes, 5 seconds as we start our highend like transplants and others we expect it to be higher than that. 52:15 52 minutes, 15 seconds Okay, if I look at 35,000 which is uh because it's tier two right and Gura is tier one SAR very high 52:22 52 minutes, 22 seconds but if I look at your margin then you're saying that you'll be able to margin you'll be able to maintain the margin but if I do there are lots of factors 52:29 52 minutes, 29 seconds which are working against it right one is as you said right the would be lower second would be your payments you will not going to get lot of international uh 52:38 52 minutes, 38 seconds patient right there is the then of course the facility takes time there is fixed card burden there is also you know Apollo hospital. 52:49 52 minutes, 49 seconds Yeah. So my question my question is so ma'am my question is that if I look at lot of factors they are working against 52:57 52 minutes, 57 seconds at least for next one to two years structurally by the way you know because Tripur is a smaller ar so structurally 53:05 53 minutes, 5 seconds anyways it's a much weaker market for from the margin point of view uh not just from short run. So you know you're 53:13 53 minutes, 13 seconds forgetting that in these places the cost is also less and keeping all of that in mind we have uh we have uh captured 53:21 53 minutes, 21 seconds around 20 crores of loss uh and a break even in 18 months time. So what happens is it takes uh 6 months uh 3 months for 53:31 53 minutes, 31 seconds the TPS to come 6 months for all the government schemes to come and almost at the same time we start getting the licenses for transplants and other 53:39 53 minutes, 39 seconds things and that's how you move right so we are starting at 35,000 the cost of running the facility is also lower 53:46 53 minutes, 46 seconds whether it is food whether housekeeping doctors nurses paramedics so it is it is lower in that in in that manner so that 53:55 53 minutes, 55 seconds is what we have said that in the first 18 months we will have a loss of 18 to 20 cr and then we will uh ramp these 54:02 54 minutes, 2 seconds numbers up um you know post um post getting all the licenses. 54:10 54 minutes, 10 seconds Yeah. So and so ma'am to make up for this country similar story like a large hospital whether it is a max or a medant they 54:18 54 minutes, 18 seconds have a facility in in a tier one and they have a facility in tier 2 cities right now uh the arps will always be 54:26 54 minutes, 26 seconds different in these two cities when you look at the consolidated P&L uh you take into account the high 54:33 54 minutes, 33 seconds and the low arps the high and the low cost of manpower consumptions and so on and so forth. And that's how you but it 54:42 54 minutes, 42 seconds always adds the if you look at the smaller towns I if you look at their standalone their AROVs are always uh 54:49 54 minutes, 49 seconds sorry their uh EITA margins are always higher in terms of percentages that than the uh bigger hospitals because um these 54:59 54 minutes, 59 seconds hospitals though they might have a lower ROP they typically function anywhere between 20 and 25% EIAS because their 55:07 55 minutes, 7 seconds other costs are low you know so that's how these things work out. 55:13 55 minutes, 13 seconds Got it ma'am. Ma'am one on the little larger term view. So uh this anyways we uh you know it'll take around 3 to four 55:22 55 minutes, 22 seconds years for uh Rapur facility to be you know completely ramped up to get to around occupancy level we have today at 55:29 55 minutes, 29 seconds Gurau. Now uh do you see that in that till that term the gura of course will have to perform much better but if I 55:36 55 minutes, 36 seconds just do some simple calculation at least you know based on the number what you gave so Gorga facility will now today 55:43 55 minutes, 43 seconds which uh which today uh is at around 21 margin and uh it's around 230 or 55:51 55 minutes, 51 seconds something uh uh sorry I don't have the exact number but I think it needs to grow at around there we go yeah correct so it needs to accelerate 55:59 55 minutes, 59 seconds It grows by around 6 to 7%, which I think crosses your 20% uh number which you gave earlier. It in 56:07 56 minutes, 7 seconds my figures it needs to grow at around 23 24%. 56:12 56 minutes, 12 seconds Hi Pratik Rudra this side. So if you see Gura margins if you see the Gura revenues it will grow at 15 to 15 56:20 56 minutes, 20 seconds between 15 to 17% year on year and whatever revenue and you have seen the performance and the margin profile of 56:27 56 minutes, 27 seconds Q4. So whatever revenue that gets added to the Gura facility right now at least 30% will flow down. So and 18 to 20 56:36 56 minutes, 36 seconds crores of losses that I have highlighted for Raipur which would be a drag of 1 to 1.5% in the first year after that once 56:45 56 minutes, 45 seconds the Raipur starts break evening within 18 to 20 months when it is break even and everything starts uh uh starts 56:53 56 minutes, 53 seconds flowing off in a neutral manner it will add up to the AIA. So it it is just a question of 1 to one and a half years when the profile would be down first 57:02 57 minutes, 2 seconds because it uh maybe one one to one and a half% not more than that. 57:08 57 minutes, 8 seconds Yeah, that is what yeah I think that is what even my numbers are saying 1 to one and a half. So should not be a big drag but yeah some slight drag on the margin 57:16 57 minutes, 16 seconds for calculation would be 20 crores over a,300 crores revenue that we are expecting is 1 and a2%. So that is the 57:24 57 minutes, 24 seconds overall thing. So one one and a half% it would be down for around 15 months then it would again add up to the betas. That's right. 57:31 57 minutes, 31 seconds Okay. Yeah. Thank you. Thank you for the excellent answer that clarifies my doubt. Thank you sir. 57:37 57 minutes, 37 seconds Thank you. Next question is from the line of Satyam Kumar from AAA holding trust. Please go ahead. 57:46 57 minutes, 46 seconds Uh hi. Uh thanks for the opportunity. 57:49 57 minutes, 49 seconds Actually I have couple of questions. Uh first uh just wanted to get your thoughts like recently some news were 57:56 57 minutes, 56 seconds flowing that health ministry is like examining margin caps on medical devices sidrising uh insurance costs and all. So 58:05 58 minutes, 5 seconds like I think earlier proposal was 65% cap and recent discussion is around 30 to 50%. So do you have any thoughts on this thing you would like to share? 58:17 58 minutes, 17 seconds Sorry I I missed the question. 58:20 58 minutes, 20 seconds Could you could you repeat it? Sorry, I just missed it. I'm sorry. Yeah, sure. Sure, sure. So, recently there were some news flows uh with regards to 58:28 58 minutes, 28 seconds that health ministry is examining putting a margin cap on medical devices uh the medical devices which hospital 58:36 58 minutes, 36 seconds use uh to treat the patients. Okay. So, in past also we have heard something on the similar lines when there were news that around 65% cap will be there. 58:46 58 minutes, 46 seconds Recent news now says that around 30 to 50% cap might be there. So is there anything concrete with regards to that 58:53 58 minutes, 53 seconds uh the hospitals uh for the hospital it can be a negative we haven't heard no there is no nothing concrete in this 59:01 59 minutes, 1 second regard and because I'm also members of CI we haven't heard this and there is no notification which has come 59:09 59 minutes, 9 seconds the last time it happened was for the scent for you know stents and implants and that's where we are nothing new has 59:16 59 minutes, 16 seconds been added to that list okay Understood. And uh ma'am would you like to give some uh like guidance for 59:24 59 minutes, 24 seconds some something longer term like say next 3 to four years what kind of topline you are eyeing for and and second like uh 59:33 59 minutes, 33 seconds how the arop of international patient is growing with respect to domestic patients. So just these two questions. 59:41 59 minutes, 41 seconds So basically you know and Rudra Rudra will give you a little bit more insight and we can't give a guidance but I can 59:48 59 minutes, 48 seconds tell you the next 3 to 5 years is the next phase of expansion that uh we are going to see. So not only are we going 59:56 59 minutes, 56 seconds to consolidate and move uh bigger and faster in Gorga uh our uh facilities in Rayipur will uh start getting matured. 1:00:07 1 hour, 7 seconds Our uh Delhi facility is going to start. 1:00:09 1 hour, 9 seconds So some we don't want to give numbers as such because that would be incorrect but Rudra will be able to give you some kind of a flavor. 1:00:17 1 hour, 17 seconds So hi Sasham from our uh flagship hospitals if you see we would be adding beds and over a period of 3 to four 1:00:25 1 hour, 25 seconds years you can take at least 15 to 17% growth on the revenue front and whatever numbers whatever revenue that gets added 1:00:33 1 hour, 33 seconds to the uh top line at least 30% will flow down to the EIA. So that is the overall thing that we have in mind and 1:00:41 1 hour, 41 seconds apart from that the for the Raipur thing I have already said you that there will be an 18 to 20 growth of loss and then it will start adding up to the overall 1:00:50 1 hour, 50 seconds P&L. So that is for the next uh 2 to three years and having and also we have plans to uh raise up to uh 700 crores 1:01:00 1 hour, 1 minute that we have taken the board approval and we will go for the shareholders approval once the assets are finalized. 1:01:06 1 hour, 1 minute, 6 seconds So that portfolio we have to see how the mix is and what gets added over there. 1:01:12 1 hour, 1 minute, 12 seconds And just uh one uh if you can share insights with regards to how ARPOP for international patient is growing 1:01:19 1 hour, 1 minute, 19 seconds compared to domestic patient it's one and a half times more I mean 1:01:26 1 hour, 1 minute, 26 seconds 1.3 times I would say more than domestic patient. No ma'am that I understand how how the growth is happening like 1:01:33 1 hour, 1 minute, 33 seconds domestic how much percentage of price hike you are taking compared to international patient that's that aspect just wanted to understand 1:01:41 1 hour, 1 minute, 41 seconds we take a 15% hike even in the next budget we have taken a 15% hike on our top line and 7030 is the division 1:01:49 1 hour, 1 minute, 49 seconds between domestic and international so similar hike we are taking in domestic and international business so the top line we are budgeted with at least 1:01:58 1 hour, 1 minute, 58 seconds minimum of 15% increase in the top line and uh revenue mix 70% domestic 30% 1:02:04 1 hour, 2 minutes, 4 seconds international with a 15% overall increase in the business 15% for domestic and 15% for international 1:02:14 1 hour, 2 minutes, 14 seconds pretty clear thank you yes thank you thank you next question is from line of sikaran 1:02:23 1 hour, 2 minutes, 23 seconds from pulawarati finsoft please go ahead yeah hi thanks for taking my question ma'am Understanding in terms of capital 1:02:31 1 hour, 2 minutes, 31 seconds allocation uh if we have to look at the cash flows which the company will generate in the next couple of years and the kind of capital you have articulated 1:02:39 1 hour, 2 minutes, 39 seconds for Guram as well as the New South Delhi and Daur don't you think picking the debt itself will be sufficient to fund this why we need this kind of a large 1:02:48 1 hour, 2 minutes, 48 seconds capital of 400 crores so yeah so hi Tai uh Rudra this side so 1:02:56 1 hour, 2 minutes, 56 seconds for the Raipur and including the 650 50 beds of Delhi the maximum peak debt would be close to 350 crores that we 1:03:04 1 hour, 3 minutes, 4 seconds will have to take and currently it is close to around 260 crores. So that is that will go up to 350 crores max and we 1:03:11 1 hour, 3 minutes, 11 seconds have we will be generating the internal approvals and that would be enough to fund our existing projects that we have announced till date. 1:03:20 1 hour, 3 minutes, 20 seconds So your question is why do we need the fund raise? Is that what is your question? 1:03:24 1 hour, 3 minutes, 24 seconds Exactly ma'am. Yes please. Yes, you got it right. Thank you. 1:03:27 1 hour, 3 minutes, 27 seconds Yeah. So basically what is happening is we need the fund raise because in some of these new projects we also have to give them a deposit. So the deposit is 1:03:36 1 hour, 3 minutes, 36 seconds cannot be funded through debt. So we have to be uh uh so that's the reason that we have to uh kind of 1:03:46 1 hour, 3 minutes, 46 seconds and and these are some of the projects which are in pipeline. So as um closer to the uh time of finalization. So we 1:03:54 1 hour, 3 minutes, 54 seconds have a we have a pipeline which has some brown and green field projects and we should be we are looking at the next 1:04:01 1 hour, 4 minutes, 1 second four to six weeks to finalize at least one of them and uh then go for the raise because this would probably be required 1:04:09 1 hour, 4 minutes, 9 seconds for this finalization of this new project. 1:04:13 1 hour, 4 minutes, 13 seconds Understood. So, so in in a way what you are suggesting is that this capital what you intend to rise will be for the projects beyond the the three projects 1:04:22 1 hour, 4 minutes, 22 seconds which you already have in correct correct correct correct that's right. So we this capital raise is only 1:04:29 1 hour, 4 minutes, 29 seconds going to fund our new projects which could be one or which could be two. Yeah. 1:04:34 1 hour, 4 minutes, 34 seconds Got it. And the second thing is the primary simple extension of your capital allocation strategy. Whenever you allocate capital what are the few things 1:04:42 1 hour, 4 minutes, 42 seconds which you look at in terms of ROC's and then how do you think about deploying that capital in terms of the return ratios if you can just articulate that 1:04:50 1 hour, 4 minutes, 50 seconds will be really helpful ma'am thank you very much yes yes I I'll ask to talk talk about when we evaluate the project we 1:04:58 1 hour, 4 minutes, 58 seconds basically focused on IR and ROC IR and ROC and what kind of numbers you look at and 1:05:07 1 hour, 5 minutes, 7 seconds what correctly our ROC is around 14.5%. 1:05:11 1 hour, 5 minutes, 11 seconds And going forward we are expecting uh in the range of 16 to 18%. In how much period of time? 1:05:18 1 hour, 5 minutes, 18 seconds Uh in next uh 3 to 4 years time frame. 1:05:23 1 hour, 5 minutes, 23 seconds So this will be the incrementary capital when you allocate that's how you think about it sir 15 to 16% kind of an ROC is 1:05:30 1 hour, 5 minutes, 30 seconds what you intend whenever you take up the project. 1:05:33 1 hour, 5 minutes, 33 seconds Capital Yes. So when we take up the project which is with any new capital which is being deployed we look anywhere 1:05:40 1 hour, 5 minutes, 40 seconds between 16 to 18% uh ROC in the next 3 to 5 years and that's how we have extrapolated our new projects and uh 1:05:49 1 hour, 5 minutes, 49 seconds when they fit the bill only then we go ahead with the project. 1:05:52 1 hour, 5 minutes, 52 seconds Also to add to Dr. Davina cycle we look at the payback period and we see to it that the payback period is within five to six years of the time. 1:06:01 1 hour, 6 minutes, 1 second That's right. So that is one of the factors that we think and we see the asset turnovers also and those are few 1:06:08 1 hour, 6 minutes, 8 seconds of the factors that we think we look at and then decide upon the uh new expansion projects. 1:06:16 1 hour, 6 minutes, 16 seconds Great really appreciate this ma'am if I can squeeze in one last question. If you have to benchmark your Google hospital with the best in the NCR, do you still 1:06:24 1 hour, 6 minutes, 24 seconds think that there are certain gaps in terms of the capabilities and then maybe some of the existences still some more 1:06:31 1 hour, 6 minutes, 31 seconds uh what I can say up in the uh Gurong hospital is needed or we are at par with the best in the NCR. 1:06:38 1 hour, 6 minutes, 38 seconds So my answer is there is there is no uh deficiency in this hospital and that is 1:06:45 1 hour, 6 minutes, 45 seconds why this hospital is the biggest hospital in terms of gura referrals. 1:06:50 1 hour, 6 minutes, 50 seconds There was a survey done. So now the the next phase of growth when uh the brand 1:06:57 1 hour, 6 minutes, 57 seconds becomes uh popular in other parts of Delhi NCR and in central India. This is 1:07:04 1 hour, 7 minutes, 4 seconds going to be a new era. So there is nothing that we do not do from a heart lung transplant to liver transplant bone 1:07:10 1 hour, 7 minutes, 10 seconds marrow neurosurgery neurointervention cyberniz there there is not one thing that we do not do do which is missing 1:07:19 1 hour, 7 minutes, 19 seconds from our list so we are right at the top and that's that's also a reflection from our patient growth and our ps you know 1:07:27 1 hour, 7 minutes, 27 seconds if you do not if you're not in the quartinary space you will never reach those art ps thanks a lot and really efficient Thank you very much. 1:07:36 1 hour, 7 minutes, 36 seconds Thank you. Thank you. Thank you. 1:07:38 1 hour, 7 minutes, 38 seconds Thank you. Next question is from the line of Anab Sangal from Anandra Shares and Securities. Please go ahead. 1:07:47 1 hour, 7 minutes, 47 seconds Hi, good afternoon. Uh my question would be do we have any sort of EWS obligation in the Raipur and the new Vimhance 1:07:55 1 hour, 7 minutes, 55 seconds facility and if so then uh uh what would be the extent of it if you can quantify that? So EWS goes on in every uh in 1:08:05 1 hour, 8 minutes, 5 seconds every private hospital in Delhi NCR and otherwise. So in Goa we have 20% in 1:08:12 1 hour, 8 minutes, 12 seconds Delhi we have 10% EWS commitment and um Rayur will be again in the range of 10%. 1:08:19 1 hour, 8 minutes, 19 seconds Uh which we are not sure but less than 10%. So actually uh complying to these EWS is not an issue if you know how to 1:08:28 1 hour, 8 minutes, 28 seconds do it. How you move your um facilities for the EWS, how do you create your facility for the EWS, how do you manage 1:08:36 1 hour, 8 minutes, 36 seconds your supply chain. So you know all of that. So we are in this space for the last 18 19 years with 20% EWS and uh we are known to be one of the best in Gura. 1:08:49 1 hour, 8 minutes, 49 seconds In terms of compliance, we have never had an issue. Sure. Thank you. 1:08:56 1 hour, 8 minutes, 56 seconds Thank you. 1:08:58 1 hour, 8 minutes, 58 seconds Next question is from the line of Dwang Patil from Samisha Capital. Please go ahead. Hi, just wanted a quick clarification. 1:09:08 1 hour, 9 minutes, 8 seconds Yes, can't hear you. Hello. Can you hear me now? Can you hear me now? 1:09:16 1 hour, 9 minutes, 16 seconds Yes. 1:09:17 1 hour, 9 minutes, 17 seconds Okay. wanted to uh clarify uh the cash flow from operations for the full year is lower. So are there any one-offs in the second half and what kind of AITA to 1:09:26 1 hour, 9 minutes, 26 seconds cash flow conversions we can expect going forward? 1:09:31 1 hour, 9 minutes, 31 seconds Cash flow from operation for the year if you see it is around 60% of my AIDA and free cash flow is around percent netting of capex. 1:09:44 1 hour, 9 minutes, 44 seconds There is no one off as such. No one would speak from one of your Okay. Does that answer your question? 1:09:55 1 hour, 9 minutes, 55 seconds Yes. The conversion is particularly lower in the second half and uh so are these the normal numbers because we've 1:10:02 1 hour, 10 minutes, 2 seconds seen CFO come off for the full year versus last year versus last year we have improved cash 1:10:10 1 hour, 10 minutes, 10 seconds flow from operation. Can we just take it offline with Sanjie and others? Let let us check the numbers. Yeah. Yeah. 1:10:18 1 hour, 10 minutes, 18 seconds We have cash flow free cash flow this year is 88 cr versus 69 cr last year. 1:10:26 1 hour, 10 minutes, 26 seconds But any other question we can take it offline. Yeah. Because we'll have to check uh these numbers and we don't want to give a yeah wrong uh number. Yeah. 1:10:36 1 hour, 10 minutes, 36 seconds Yeah. That is all from my side. Thank you. Okay. 1:10:41 1 hour, 10 minutes, 41 seconds Thank you very much ladies and gentlemen. We'll take that as our last question. I'll now hand the conference over to the management for closing comments. 1:10:51 1 hour, 10 minutes, 51 seconds Hi Nudra this side. So I would like to thank everyone for joining the call. I hope we have been able to respond to all 1:10:59 1 hour, 10 minutes, 59 seconds the queries adequately. For further information I request you to please get in touch with me or the investor relations team. Stay safe, stay healthy and thank you once again for joining us. 1:11:11 1 hour, 11 minutes, 11 seconds Thank you very much. Thank you. 1:11:13 1 hour, 11 minutes, 13 seconds Thank you very much on behalf of Anvati Shares and Stock Broking Limited. That concludes this conference. Thank you for joining us and you may now disconnect your line. Thank you.