Chandan Healthcare Ltd — Q3 FY26

Chandan Healthcare Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ne3H6JEP2QQ Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Chandan Healthcare Limited Q3 and 9 month FI26 earnings conference 0:08 8 seconds call hosted by Kiran Advisor Private Limited. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to 0:16 16 seconds ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:23 23 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:30 30 seconds to Mr. Par Acharia from Kiran Advisor Private Limited. Thank you and over to you sir. 0:37 37 seconds Thank you. Good evening everyone. On behalf of Green Advisor, I welcome you all to the conference call of Chandan Healthcare Limited. From the management 0:46 46 seconds team, we have Mr. Amar Singh, chairman and managing director, Mr. Rajim, CFO and company secretary. With that, now hand over the call to Mr. Amar Singh. 0:58 58 seconds Thank you sir. 1:01 1 minute, 1 second Good afternoon ladies and gentlemen. It is my privilege to address you at the time of closing third quarter of 2026 1:09 1 minute, 9 seconds and this period has been one of remarkable progress and renewed commitment towards our mission of transforming healthcare across India. 1:19 1 minute, 19 seconds This year has been very special for us and delighted to announce the start of six comprehensive diagnostic centers in 1:26 1 minute, 26 seconds different cities. These centers are equipped with advanced pathology and radiology services and already making a positive impact in their communities. 1:37 1 minute, 37 seconds Our expansion continues with another comprehensive center scheduled to open in Rayapur next month. It is at the last stage of completion and uh it will 1:46 1 minute, 46 seconds further strengthening our footprint to various parts of India. 1:51 1 minute, 51 seconds In addition, we have already started operations at two laboratories within Gina seco hospitals and they are located 1:59 1 minute, 59 seconds at merit in up andasi in Punjab. These labs will enhance access to quality diagnostic for genusco patients. 2:09 2 minutes, 9 seconds Next month we will launch nine more labs which are at last stage of completion and one by one these labs will be 2:17 2 minutes, 17 seconds started in this month and very next month and this is a part of our commitment to become global and these 2:23 2 minutes, 23 seconds are Mumbai Kolkata Chandigar Ahmedabad Surat Vadodra Gojhati Kurus and Kota. 2:35 2 minutes, 35 seconds We are also upgrading our existing centers by having 10 bone marrow density machines and five fibro scan. These are 2:43 2 minutes, 43 seconds the liver scan machines. Five fibro scans in quarter 4 26 in the next this quarter. 2:50 2 minutes, 50 seconds We are proud to announce the opening of two wellness center in Delhi and Jaipur next month. And these centers are designed to promote preventive care and 2:59 2 minutes, 59 seconds holistic well-being offering specialized services to local communities. 3:05 3 minutes, 5 seconds We are also celebrating an important milestone receiving award for our radiology services in eight districts 3:11 3 minutes, 11 seconds hospital across Punjab and one railway hospital in Gojhati Assam. Operations in the hospitals will commence over next 3:20 3 minutes, 20 seconds six months one by one ensuring high quality imaging and diagnostic for a larger population of these areas. 3:28 3 minutes, 28 seconds Our reach now extends to 13 states in this financial year showing our dedication and teamwork. We have 3:36 3 minutes, 36 seconds enrolled franchisee at over 100 locations and the results will start coming from uh this quarter 3:43 3 minutes, 43 seconds and this these are empowering partners and expanding our network to serve more and more people across India. This 3:51 3 minutes, 51 seconds strategic growth will have a strong foundation for our future plans because our future belongs to 1,000 franchisee in next three years. 4:00 4 minutes And looking ahead, we are preparing to launch three more comprehensive centers and 13 laboratories across three states next year. This is our next year plan 4:09 4 minutes, 9 seconds and one genome lab at no and one pattis scan at Gorakur. This is our first PAT scan uh is also planned in H127. 4:19 4 minutes, 19 seconds Our wellness center and central lab will also start in H127 at Jangi Puram Lacno and together with all the radological 4:27 4 minutes, 27 seconds services and this central lab will be the largest lab in Uttar Pradesh and lastly I wish to express my 4:36 4 minutes, 36 seconds heartfelt gratitude to all our team members investors for their continued support and belief in our journey and 4:44 4 minutes, 44 seconds together we are shaping a bright future for healthcare in India. Let us continue to move forward with optimism and determination as we strive to touch more 4:53 4 minutes, 53 seconds and more lives and achieve greater milestones. 4:57 4 minutes, 57 seconds And now I hand over to Mr. Rajiman, our CFO for declaring 20 Q3 26 results. Mr. 5:04 5 minutes, 4 seconds Rajiv, thank you. Thank you very much sir. Uh good afternoon everyone. So I am excited to share with you all the financial 5:12 5 minutes, 12 seconds highlights of this quarter. The quarter ended 31st December 2025. 5:18 5 minutes, 18 seconds So uh during this quarter we achieved a very good growth of uh uh 20% in top line. So our sales tot 65.77 PR during this quarter. 5:30 5 minutes, 30 seconds The major contributo to uh this growth is diagnostic B2C sales which grew almost 34% as compared to last year. 5:40 5 minutes, 40 seconds The AITA during this period uh restored a growth of 39% as compared to last year which stood at 12.61 cr. 5:50 5 minutes, 50 seconds The AITA margin also uh grew by 263 basis point and it was 19.17% of sales. 6:00 6 minutes Uh I need to mention that during this period during this quarter we did a provision of 2.2 2C cr which is 6:07 6 minutes, 7 seconds exceptional one-time provisioning of uh graduity uh cost. So it is one time cost 6:14 6 minutes, 14 seconds we uh did this quarter. So after that we achieved a pat of 4 54 cr which is 7.97 6:24 6 minutes, 24 seconds basis point uh which is 7.97% up as compared to last year. 6:30 6 minutes, 30 seconds So pat margin was 6.9% which is seven seven basis point down because of this one time exceptional 6:37 6 minutes, 37 seconds item of 2.2C cr. So now I welcome all question and answers for this session. 6:45 6 minutes, 45 seconds Thank you very much. We will now begin with the question and answer session. 6:49 6 minutes, 49 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue you may 6:56 6 minutes, 56 seconds press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q 7:03 7 minutes, 3 seconds assembles. The first question comes from the line of Priu Jane from growth X infiniti. Please go ahead. 7:24 7 minutes, 24 seconds The next question comes from the line of Moan Agarwal, an individual investor. Please go ahead. 8:10 8 minutes, 10 seconds Just a moment. 9:32 9 minutes, 32 seconds The next question comes from the line of Path Acharia from Kiran Advisor. Please go ahead. 9:42 9 minutes, 42 seconds Hello. 9:43 9 minutes, 43 seconds Hello. Yes. Yeah. Ra. So, there seems to some like uh issue. Uh can you in the meanwhile like uh uh walk us through the 9:51 9 minutes, 51 seconds like uh Q uh key highlights of Q3 operational? 9:56 9 minutes, 56 seconds Okay. Uh should I uh repeat the highlights financial highlight? 10:00 10 minutes Yeah. Yeah. There seems to be some issue with the queue the participants are not like they are not able to speak up. Uh 10:08 10 minutes, 8 seconds in the meanwhile you can just uh walk us through the Q3 operational highlights. 10:13 10 minutes, 13 seconds So uh again the Q3 numbers uh the the top line for this quarter was 65.77 cr 10:20 10 minutes, 20 seconds which is 20% up as compared to last quarter of uh uh uh last year. So major 10:28 10 minutes, 28 seconds contributor to this sales was diagnostic B2C sales which grew almost 34%. The beta for this period this quarter stood 10:36 10 minutes, 36 seconds at 12.61 61c which is almost 90 39% up as compared to last year. 10:44 10 minutes, 44 seconds Uh AITA margin during this period was 19.17% which is 263 basis point up 10:51 10 minutes, 51 seconds during this period was 4.54 CR which is 7.97% up as compared to last quarter and during this quarter we did a provision 10:59 10 minutes, 59 seconds of 2.2 CR of graduity because of some revision in wages as per new labor code. 11:07 11 minutes, 7 seconds So uh that after that was 4.54 CR that margin during this period was 6.9%. 11:14 11 minutes, 14 seconds Which is 77 this is going down. 11:17 11 minutes, 17 seconds Yeah. So now we can open the question of the session. Thank you. 11:25 11 minutes, 25 seconds So can I announce questions? Yeah sure. 11:29 11 minutes, 29 seconds The first question comes from the line of Priu Jane from Growth X Infinity. Please go ahead. Hello. Am I audible now? 11:37 11 minutes, 37 seconds Yes. 11:40 11 minutes, 40 seconds Hi sir, congratulations on good set of results. Uh so going forward as we are planning to do around thousand uh diagnostic centers through franchisee. 11:49 11 minutes, 49 seconds So uh can you tell us the capex which is required for per franchisee? 11:55 11 minutes, 55 seconds Uh sir for franchisee we don't uh need to invest anything. Uh actually we have to invest in our labs only and uh we are 12:04 12 minutes, 4 seconds planning to start 100 labs in 3 years and already in this year we have already started more than 13 labs and next year 12:12 12 minutes, 12 seconds also we are going to start more than uh 13 labs and few comprehensive uh centers which has all uh pathological and 12:19 12 minutes, 19 seconds radological services. As far as franchise is concerned these are the collection points. Somebody takes the 12:26 12 minutes, 26 seconds franchisee of Chandan Healthcare and he collects the samples and transfer to our lab and our investment is in labs only 12:34 12 minutes, 34 seconds and for that we are planning to invest nearly 100 cr in 3 years and for that matter we have already gone for 12:42 12 minutes, 42 seconds preferential shares of 104 cr. So we are having money and uh we are regularly investing and and lot of investment we 12:50 12 minutes, 50 seconds have already done in this year and uh and in next two years also we will continue to uh expand. 12:58 12 minutes, 58 seconds Okay. Uh so uh can you tell us the capex for per laboratory as we are doing as of today? 13:04 13 minutes, 4 seconds Yes. uh if we are having our own laboratory actually we are putting some laboratory within the Gina hospital and 13:11 13 minutes, 11 seconds but they are very few hardly seven or 10 uh they will provide the space otherwise we are putting lab outside and whenever 13:18 13 minutes, 18 seconds we started lab actually to uh prepare a setup we have to invest nearly 50 50 13:26 13 minutes, 26 seconds lakhs to 75 lakhs depending on the size of the place and uh besides this we have to invest nearly 50 lakhs more that 13:33 13 minutes, 33 seconds simply means For each laboratory we are investing nearly 1 K. 13:39 13 minutes, 39 seconds Okay. Uh sir can you some uh throw some light on it like the uh right now we have partnered with Gina for next 5 13:48 13 minutes, 48 seconds years. So what is the attraction uh we are getting right now and uh what is the plan over there because there is a card which is uh being launched by Gina. So can you throw some light on it as well? 13:59 13 minutes, 59 seconds uh sir card it is their card and they are using this card for their own uh hospital purposes. As far as we are concerned at the moment uh we are having 14:08 14 minutes, 8 seconds nearly two lakhs 50,000 to three lakhs per day. It is touching three lakhs per day and uh we have covered only uh 25 to 14:16 14 minutes, 16 seconds 30% of their hospital and clinics and in next 6 months we will cover nearly 80%. And in next one year we will cover 100%. 14:25 14 minutes, 25 seconds And moreover whatever they are going to expand uh they will give us a space for lab inside their hospital. That simply 14:33 14 minutes, 33 seconds means at the moment if we are getting three lakhs per day collection it is hardly 25 to 30% what we are going to get in next one year. 14:44 14 minutes, 44 seconds Okay that's nice. Uh so just two more questions. So uh is on the competition side uh like we have Dr. Lal and other 14:52 14 minutes, 52 seconds uh diagnostics uh companies. So like what is uh what is the differentiator which we are offering to our customers or like on the price point or uh like uh 15:01 15 minutes, 1 second going forward we are providing something additional benefits to our customer or clients. So how uh is the deal uh like over there. 15:09 15 minutes, 9 seconds Okay. Actually uh if we we are going for franchise definitely in case of franchise we have a direct competition 15:16 15 minutes, 16 seconds with Dr. Tal and thyroidare and metropolis all but our main business belongs to our comprehensive centers 15:24 15 minutes, 24 seconds which gives all pathological andological services and besides this we are putting more and more labs all over India just 15:32 15 minutes, 32 seconds to get 100% work of Gina as well as we are involved in getting uh work from in orange companies corporate sectors and 15:41 15 minutes, 41 seconds uh sometimes we have affiliation with government sector also and and franchises And we have a direct footfall 15:48 15 minutes, 48 seconds also. Uh I just tell you the whatever what they are doing they are putting the lab at a distant places where there is 15:56 15 minutes, 56 seconds no footfall. They are based on collections from the franchise. But our franchise business is going to happen in 16:03 16 minutes, 3 seconds future and that will be hardly 10% of the total business. And in case of comprehensive uh centers we don't have 16:10 16 minutes, 10 seconds any competition of a larger player. We just have a competition from a local players. What local population is 16:18 16 minutes, 18 seconds getting services of pathology and radiology from local pathologist and radiologist? They are our competitors 16:25 16 minutes, 25 seconds and it is very easy to compete with them just because we can do at a lesser rate also and moreover we have a better 16:32 16 minutes, 32 seconds branding and we have a global presence and we are doing all type of tests and uh they are not able to do all type of 16:39 16 minutes, 39 seconds test because uh few test that they get get it done from bigger labs but we are going to give all type of test at a 16:47 16 minutes, 47 seconds lesser rate we we have a better branding and we have a larger presence all over India So for local players it is very easy to 16:55 16 minutes, 55 seconds beat them and as far as big players are concerned they are not into it. They are not giving all type of facilities under one roof. We give all type of facilities 17:04 17 minutes, 4 seconds under one roof and getting patients directly at our center because doctors refer patient to us and we have a loyal 17:11 17 minutes, 11 seconds customers. They are repeatedly coming to our center and that is our main uh differentiator from these big players. 17:20 17 minutes, 20 seconds So sir like if I summarize this what you saidfall that is one from the doctors which we 17:28 17 minutes, 28 seconds have affiliated with so they are going to refer the uh patients uh to our labs that is first point. Second point is 17:35 17 minutes, 35 seconds that the uh customers uh uh uh who are uh like sorry the competition which is there at a local level uh because we are 17:44 17 minutes, 44 seconds providing better services and majority of the services under one roof uh as uh with uh big players as well. So that is 17:52 17 minutes, 52 seconds our plus point is is uh is my understanding correct like over there? Yes, you uh you understood correctly. 17:58 17 minutes, 58 seconds But there is one difference. Uh referring patients, we are dealing with referring patients 50%, and rest of the 50% we get 10% as a self patients and 18:08 18 minutes, 8 seconds 40% we have a corporate business from insolage companies, public sector units, banks and all CGHS, all corporates we 18:16 18 minutes, 16 seconds are getting nearly 40% and 10% we get directly uh patient directly comes to us and 50% we get as a reference from the 18:25 18 minutes, 25 seconds doctors. This is the equation of uh uh having the patients at our center and that that why it is so because we get 18:34 18 minutes, 34 seconds repeated patients repeatedly every big corporates go for health checkups and we have affiliation with all big more than 18:41 18 minutes, 41 seconds 200 affiliations we are having in every city and that's why we are getting the patients every year for health checkups also we are getting patients of of insur 18:50 18 minutes, 50 seconds companies and we are getting patients from CJS and other bank other dispensaries also So uh you are right we 18:57 18 minutes, 57 seconds are we get patients from the uh doctors from as a self patient and uh from corporate and moreover now if we are 19:06 19 minutes, 6 seconds putting more and more franchise we will get the p uh samples from franchise also. 19:12 19 minutes, 12 seconds Okay that's nice sir sir just two more questions like on the ieta side what we are planning like this these are the sustainable ITA margins going forward. 19:23 19 minutes, 23 seconds Uh sir uh next year we are next year we will start a Punjab and Gojhati project and that project is 52 crores per year. 19:32 19 minutes, 32 seconds It is already declared uh it is a government project and we have already won this project and uh within 6 months 19:39 19 minutes, 39 seconds we will install all the MRI and CT scans everywhere uh in nine district hospitals and that business as far as government 19:47 19 minutes, 47 seconds has conveyed it is 52 crores but most of the time it is more than that. that will be added to our normal growth of our 19:55 19 minutes, 55 seconds company. So uh this will be a gamecher also in next year and moreover we are putting more and more comprehensive 20:02 20 minutes, 2 seconds centers and lab definitely there will be a big big difference in next year it will not be like this what we have done 20:10 20 minutes, 10 seconds in this year so uh that's uh good but a bit margin side but we are like they will going to 20:19 20 minutes, 19 seconds improve in future or like these are the sustainable margins which we deliver in this particular quarter definitely Uh definitely IATA margin 20:27 20 minutes, 27 seconds will improve just because uh during the course of expansion and uh this IITA margin is affected for uh some time but 20:36 20 minutes, 36 seconds as soon as we will have more and more centers that becomes older and more mature then ITA margin increases and in in this quarter uh as my CFO has already 20:45 20 minutes, 45 seconds told you the ITA margin is affected by our code basically um 20:52 20 minutes, 52 seconds basically graduity uh the one time expense 2.2 K and that that affected our IITA for this quarter 21:01 21 minutes, 1 second but definitely it is a one-time expense and uh it is just because of labor code new labor code from the government that is the reason uh it it is affected but 21:10 21 minutes, 10 seconds otherwise VA margin will gradually improve all the time. 21:15 21 minutes, 15 seconds Okay sir. So this last question uh is on the um revenue mix side. So going forward what we are planning because we 21:22 21 minutes, 22 seconds are getting so much attraction in the B2C business. Uh so what are like is our target going forward like government 21:31 21 minutes, 31 seconds corporates and B2C. So actually uh we are trying to do more and more B2C 21:40 21 minutes, 40 seconds somewhat less B2B and least uh B2G but sometimes these equations are not in our hand. Sometimes when we have more and 21:47 21 minutes, 47 seconds more uh comprehensive centers in a year B2C se uh segment increases very high and sometimes we get a radological uh 21:56 21 minutes, 56 seconds association from government then um B2G becomes higher but our aim is to uh keep 22:03 22 minutes, 3 seconds all these three at a equal level 33 33 33 this is our aim but sometimes it varies from 30 to 40% for any segment 22:12 22 minutes, 12 seconds and that is uh that is okay because government business, government contract when it comes, when it goes, it is not 22:19 22 minutes, 19 seconds easy to uh decide and it is not in our hand. That's why sometimes equation changes. But our aim is to keep B2C at 22:27 22 minutes, 27 seconds the highest level, B2B at the second level and B2G at the last level just because uh of receivable amount and that 22:34 22 minutes, 34 seconds takes nearly 3 to four months in case of B2G. That is the reason we are concentrating more on B2C business. 22:42 22 minutes, 42 seconds Sir, can you uh just give us the bifurcation on the AITA margin side like what we are getting in B2G, B2B and B2C? 22:50 22 minutes, 50 seconds Um B2C it is the highest and uh then D2G and then D2B. 22:57 22 minutes, 57 seconds Uh yes or like uh that simple thing is that simple thing is in case of B2C we have nearly if the center is matured then we get EVITA 45 23:06 23 minutes, 6 seconds plus and in case of B2G because it is a fixed then we get a IITA depending on the tender how we won the tender it is 23:15 23 minutes, 15 seconds between 30 to 40% and in case of B2B that that simply means I'm talking about the franchise business it is nearly 35%. 23:23 23 minutes, 23 seconds That simply means 40, 35 and 30. This is the ratio. 23:28 23 minutes, 28 seconds That's nice. So just last question is on the as we are targeting uh like so much growth and others. So like can we assume like for the next financial year we will 23:37 23 minutes, 37 seconds able to grow more than 30% on the topline basis. 23:40 23 minutes, 40 seconds This is much less what we are we are going to give it is much less what you are talking it is much less. It will be much much higher. But the figure you 23:49 23 minutes, 49 seconds will get every quarterly. You will get the results every quarterly and you will see uh what is happening in our organization and uh there will be a big change. 23:59 23 minutes, 59 seconds Great sir. Great sir. All the best sir. Thank you. That's all from my sir. Thank you sir. 24:05 24 minutes, 5 seconds Thank you. The next question comes from the line of Taher Hyderabad Wala from group buy fund. Please go ahead. 24:16 24 minutes, 16 seconds Mr. Taher. you may proceed with your question. Uh hello. Hello. Hello sir. Hello. Uh good evening sir. 24:24 24 minutes, 24 seconds Can you hear me? Yes. Yes. 24:28 24 minutes, 28 seconds Uh first of all congrats on the good set of numbers. I have two three questions. 24:33 24 minutes, 33 seconds Uh firstly sir in the contact we have seen a exceptional loss of 2.2 CR. Sorry if I missed it before. If you can explain what is what was this loss for? 24:46 24 minutes, 46 seconds It is it is a due to new labor code uh the graduity was basically Rajiv you can tell exactly. 24:53 24 minutes, 53 seconds Yeah sir uh because of provisioning of employee uh graduity cost uh as there is 25:00 25 minutes a revision in wages as per new labor cost so the provision is higher as compared to normal uh quarters. So this 25:07 25 minutes, 7 seconds is one time it it is a one time invest one time one time provision. Yes and sir many companies. 25:18 25 minutes, 18 seconds Okay. Okay. Thank you. Uh second question was on the uh we have planned to uh open 100 new labs uh in the next 3 25:26 25 minutes, 26 seconds years. So how many we have opened till now in end of quarter 3 and what are plans for quarter four? 25:37 25 minutes, 37 seconds Okay. Uh this is uh up to quarter 4 we will uh we will be present in 13 states 25:43 25 minutes, 43 seconds and uh uh in the next 1 month we are going to start nine uh more labs in 25:50 25 minutes, 50 seconds Mumbai, Kolkata, Chandigar, Ahmedabad, Surat, Vadodra, Gojhati, Krus and Kota. 25:57 25 minutes, 57 seconds And uh in this year also we have already started six comprehensive centers. 26:03 26 minutes, 3 seconds Comprehensive center means giving all type of pathological and radological services up to MRI and uh we have also 26:10 26 minutes, 10 seconds started uh I'm telling you the labs 18 labs we have started in this year and next year 26:18 26 minutes, 18 seconds we are going to start uh 13 more labs and uh three more comprehensive centers and one pet scan at Gorakpur and one 26:25 26 minutes, 25 seconds genome lab at Laknau also we have a massive expansion in next 2 three years. 26:30 26 minutes, 30 seconds Okay. Uh answer our Jaipur competition center was planned to launch after the H126. 26:38 26 minutes, 38 seconds So it has started or it will take time. 26:43 26 minutes, 43 seconds Uh which which center? Uh we we have already started six we have already started six centers in this financial 26:49 26 minutes, 49 seconds year and in in next uh uh basically next one month we will start one more at 26:57 26 minutes, 57 seconds Raur. Uh so uh during the year we will have uh seven comprehensive centers uh 27:04 27 minutes, 4 seconds this year u 26. 27:07 27 minutes, 7 seconds Okay. Uh and last one on the level contribution from diagnostic and pharmacy business and how the pharmacy margins are going like we target to get it 10% margin. 27:19 27 minutes, 19 seconds Actually uh yes uh we are targeting for 10% ITA margin and we are working on it. 27:25 27 minutes, 25 seconds uh at the moment we are not having much in case of uh pharmacy because we are concentrating uh more in diagnostic 27:33 27 minutes, 33 seconds business but of course uh our pharmacy business is going on and it is running and we we are targeting for 10% IATA in 27:41 27 minutes, 41 seconds next one year definitely that we will achieve uh but our 90% focus is on uh 90 27:48 27 minutes, 48 seconds rather 95% focus we are focusing on diagnostic business okay and if you can share the revenue 27:55 27 minutes, 55 seconds mix for quarter 3 between diagnostic and pharmacy. 27:59 27 minutes, 59 seconds Uh the ratio you are asking uh you are asking about the ratio it is 6040 60 28:07 28 minutes, 7 seconds and in the diagnostic uh what and in next what is our what we are 28:13 28 minutes, 13 seconds planning to have uh 10 to 20% only pharmacy business in next 3 to 5 years 28:20 28 minutes, 20 seconds because our aim is to uh develop more and more diagnostic and pharmacy business will definitely uh continue and support the collection point for 28:28 28 minutes, 28 seconds diagnostic business. That's why we are continuing it and basically these pharmacy uh units are helping our diagnostic centers by collecting the 28:36 28 minutes, 36 seconds samples at their unit and that is also a big advantage for pharmacy and we are 28:43 28 minutes, 43 seconds also uh aiming for better and better u margin also and we are working on it and uh so many things we are doing in this direction. 28:52 28 minutes, 52 seconds Okay. And one last question on the revenue link between uh radiology and pathology. 28:59 28 minutes, 59 seconds uh at the moment radology is at the moment 75% is pathology at the moment but when when we will start the Punjab 29:06 29 minutes, 6 seconds and Gojhati project definitely radiology part will increase and when our these comprehensive and labs will will get 29:13 29 minutes, 13 seconds mature then pathology will increase such uh this it's not a fixed uh basically when we have more and more radiology uh 29:22 29 minutes, 22 seconds contracts then radiology part increases at the moment uh pathology is 75%. Okay. 29:28 29 minutes, 28 seconds And uh we are currently receiving some orders from government also. So uh will this orders impact our working capital? 29:37 29 minutes, 37 seconds Uh sorry sir. 29:39 29 minutes, 39 seconds Uh we have many uh we have got some orders from government side also to establish diagnostic centers in the in 29:47 29 minutes, 47 seconds the in the government hospital from in the Punjab side. So will you start our working capital base or anything? 29:54 29 minutes, 54 seconds uh we have already arranged the working capital and we have already ordered the machines also and uh we have to start 30:00 30 minutes 50% of total MR and CT within 3 months and rest of 50% in next 3 months and 30:07 30 minutes, 7 seconds that is in line I asking when we saw government clients so there there will be some delay in payment side so I was u 30:15 30 minutes, 15 seconds looking for that answer we'll get some delay payments after starting no sir no sir we have to no sir we have 30:23 30 minutes, 23 seconds to collect the payment from the patients. Uh we don't have uh government will not pay for it. All the Punjab projects for eight uh district hospitals 30:32 30 minutes, 32 seconds we have to collect uh from the patients directly. It's a cash business. 30:37 30 minutes, 37 seconds Okay. And from that how much we have to pay to the government or the hospital uh sorry 30:45 30 minutes, 45 seconds like when we collect money from the customer how much from that amount we have to pay the hospital. 30:51 30 minutes, 51 seconds It's uh it's a project of nearly 55 crores a year uh for 10 years. It is a 550 crores project. 55 crores per year is the collection money. 31:02 31 minutes, 2 seconds Okay. Okay sir. Thank you. Okay. 31:07 31 minutes, 7 seconds Thank you. The next question comes from the line of Abiji Jane from AJ Capital. Please go ahead. 31:16 31 minutes, 16 seconds Hello. Am I audible? Yes sir. Yes. Yes sir. 31:20 31 minutes, 20 seconds Uh good afternoon sir we meet again. So congratulations on the listing front and uh congratulations on a good set of 31:26 31 minutes, 26 seconds topline number. Uh so two things I wanted to understand. One is that uh I see that in the expenses and it's very 31:34 31 minutes, 34 seconds technical in the expenses I see that you know employee cost is increasing at a rapid pace. This quarter it's almost 18% 31:41 31 minutes, 41 seconds of the revenues. So can you just give us a flavor in terms of you know whether this will be on an ongoing basis the or 31:50 31 minutes, 50 seconds you know you see it going back to the 14 15% levels that we were seeing a quarter than two ago because 18% is fairly where 31:57 31 minutes, 57 seconds Dr. L and other established chains are and I thought that you know you have a cost advantage in terms of employees mainly because you're located in one 32:05 32 minutes, 5 seconds city so just wanted to understand that sir it is because of organic expansion 32:11 32 minutes, 11 seconds and uh As I told uh we had started 18 labs in this financial year and seven comprehensive centers in this financial 32:19 32 minutes, 19 seconds year. That is the reason uh employee cost will definitely increase for it will appear to increase for some time and as soon as we will start getting the business it will come down. 32:30 32 minutes, 30 seconds Okay. So uh uh it is all because of expansion we have it is because of expansion we have to appoint the employee beforehand because 32:39 32 minutes, 39 seconds we are um um basically going to uh different different cities and all over the India. We have to appoint the staff 32:47 32 minutes, 47 seconds one or two months before the start of uh business. That is the reason it appears higher for some time and then when they will start getting good business it will come down. 32:58 32 minutes, 58 seconds Okay. Uh so secondly I heard that you mentioned that in your B2C business which is you know direct to customer uh your beta margins are in the range of 35 to 40%. Is that correct? 33:09 33 minutes, 9 seconds Yes for B2C business it is the highest and that is why we are concentrating more in comprehensive centers and labs. 33:17 33 minutes, 17 seconds Can you help us understand as to why things are so astronomically high as compared to the industry right I mean the other listed players are at an amida 33:25 33 minutes, 25 seconds margin which are mainly into B2C are in a bit margin of maximum 27 28%. Uh no 33:32 33 minutes, 32 seconds sir 90% of their business is no sir if you uh no sir if you go to the vija 33:39 33 minutes, 39 seconds diagnostic they are having B2C business and they have a very good ITA margin nearly 40 and uh as far as Dr. Lal max 33:47 33 minutes, 47 seconds and thyroare are concerned they don't have B2C business they have only franchise business that is B2B that is the reason they don't have such type of 33:56 33 minutes, 56 seconds AITA if you are having customers directly attending at your unit the same case what Vijay is doing we are also 34:04 34 minutes, 4 seconds doing the same thing the only difference they are doing the only uh B2C business we are doing B2C B2B and B2G all type of 34:11 34 minutes, 11 seconds business that's why it's an uh it is averaged uh at a lower level if we go for only B2C business then definitely it 34:20 34 minutes, 20 seconds will be around a 35 to 40%. Definitely but but the growth will not be uh in that manner in that case and we want to 34:28 34 minutes, 28 seconds grow uh globally and that is the reason we have to do B2C B2B and B2G all type of businesses that is the reason uh it 34:36 34 minutes, 36 seconds may come it it may be lesser than 3540 u basically uh if we average out it it will remain between 30 to 35. 34:45 34 minutes, 45 seconds So, so as you expand also and you you know reach more urban centers uh these margins at 35 40% will be sustainable 34:53 34 minutes, 53 seconds because I understand vija is a very regionalistic player right I mean it is not a pan India player and hence it can protect it but since you have laid out 35:01 35 minutes, 1 second your scope of you know expanding pan India being there in major open town so do you think that this 35 40% level that 35:08 35 minutes, 8 seconds you're seeing across your three lines of businesses that is sustainable uh if it is B2C business then it is 35 35:16 35 minutes, 16 seconds to 40 but at the same place we are doing all um B2GB and uh for franchise business also and corporate business 35:24 35 minutes, 24 seconds also so we expect around 30 to 35% EIA everywhere because we it is averaged out just because we are doing all type of 35:33 35 minutes, 33 seconds business only yes it is sustainable we are doing 35:40 35 minutes, 40 seconds yes we are doing it for so many years and it is sustainable and uh wherever We have opened the centers normally we say 35:48 35 minutes, 48 seconds we get break even in one to two years but usually we get break even within one year. uh wherever we are going, we have 35:55 35 minutes, 55 seconds gone to Japur, we have gone to uh Bopal, we have gone to Dhi and we are seeing uh it is it is not a problem and anywhere 36:04 36 minutes, 4 seconds just because when you are you become a global player and going to any city and you have to compete with the local player definitely we have advantage over 36:13 36 minutes, 13 seconds them and that is the reason uh uh it is it is a maintainable iita wherever we go 36:21 36 minutes, 21 seconds right and are you seeing any improvement in your working capital base uh in this quarter? Have you seen any improvement 36:28 36 minutes, 28 seconds going forward? Can you expect it to come down so that the cash conversion is high? Uh Rajiv, you can say about this. 36:36 36 minutes, 36 seconds Yes sir. Uh it is improving uh quarter to quarter. So uh we had uh we had not so good uh working capital in 36:45 36 minutes, 45 seconds March last year but we are improving it on quarterly basis. 36:50 36 minutes, 50 seconds Do we see a positive net cash uh inflow from operating? We are here. We are Yeah, we are positive. 36:59 36 minutes, 59 seconds Okay. So, final question. Uh I I know you are you have alluded to you know that you'll be seeing a higher growth than 30% that you have projected. Uh but 37:08 37 minutes, 8 seconds just can you just give us more flavor about your FI27? I know FI26 is because you know you did a PUIP so your EPS 37:15 37 minutes, 15 seconds might not grow as high as your revenue growth because of the larger equity base but FI27 can you just give us more flavor around how the PAT and you know 37:24 37 minutes, 24 seconds the bottom line can look like it will be a different game uh in next year just because we have got uh a very 37:32 37 minutes, 32 seconds big contract from the Punjab and Gojhati and that itself uh is a project of 55 crores a year and that will add up add 37:41 37 minutes, 41 seconds up at our regular growth that simply means it will be a gamecher for next year but the but that impact you will 37:49 37 minutes, 49 seconds see quarter to quarter. Uh as far as numbers are concerned it is not possible us for us to exactly tell you about this 37:56 37 minutes, 56 seconds but definitely it will be a uh it will be a great change next year because of we have got so many contracts and 38:03 38 minutes, 3 seconds because of so many expansion and uh whatever we have done expansion in this year it will start giving fruits next year also. So we will have a very good uh prospect for the next year. 38:16 38 minutes, 16 seconds Any aspirations to be in the top two, top three diagnostic change in India in the next two to three years given how you're growing. 38:22 38 minutes, 22 seconds Uh so in next 2 three years definitely we can go amongst uh first four or five but 38:31 38 minutes, 31 seconds not two to three just because there are three four big players. But as far as growth is concerned uh as far as growth 38:38 38 minutes, 38 seconds is concerned definitely we can compete anyone. Yes. But as far as volume of business is concerned that maybe uh we 38:46 38 minutes, 46 seconds may be in first five but as far as growth is concerned definitely we will supersede definitely. 38:52 38 minutes, 52 seconds Okay sir. Congratulations and all the best sir. Thank you sir. 38:57 38 minutes, 57 seconds Thank you. The next question comes from the line of Bri Jin from Nisha Investment Advisor. Please go ahead. 39:04 39 minutes, 4 seconds Hello. Yes sir. 39:07 39 minutes, 7 seconds Hello sir. Hello sir. I Yes. Yes sir. 39:12 39 minutes, 12 seconds Basically I want to understand that in the pathology segment currently molecular diagnostics in India has 39:19 39 minutes, 19 seconds started growing companies like 3 and currently byp. So basically can you 39:27 39 minutes, 27 seconds being a diagnostic there can you explain me the trend of molecular diagnostic how it will play in India? Are you currently 39:35 39 minutes, 35 seconds seeing customers at your centers requesting for molecular diagnostic genomeical testing? Basically I want to 39:43 39 minutes, 43 seconds say yes sir it has already started coming to our centers and uh our group company uh we have two hospitals and there is a 39:52 39 minutes, 52 seconds great demand from these hospitals also that's why we are going to have uh genetic lab in next 6 months at lucknau and we are working all all day and night 40:01 40 minutes, 1 second for this lab and uh within 3 to 6 months it will be started in Lucknau and definitely it has a great future but uh 40:08 40 minutes, 8 seconds we cannot put these such kind of lab all over India because you can uh bring the samples from all over India and do the 40:15 40 minutes, 15 seconds test at luckno that's why we are making this lab uh genome lab at luckno and uh definitely it has a future but it is a 40:23 40 minutes, 23 seconds gradual growth at the moment there is a great uh demand uh everywhere but it is 40:30 40 minutes, 30 seconds a sporadic demand that's why uh we will put the lab at luckno first and we will bring the samples from all over India 40:37 40 minutes, 37 seconds from our centers and we will do the test at luckno but definitely there is a big future for uh such kind of labs because 40:45 40 minutes, 45 seconds the future belongs to three things only cancer, IVF and genetic lab. These three things are the future of uh healthcare 40:54 40 minutes, 54 seconds because basically this test are on expensive side basically do you prefer open-ended machines or closedended 41:01 41 minutes, 1 second machines from ROS or bigot? Do you uh in your new lab will you prefer open PCR or 41:09 41 minutes, 9 seconds closed PCR machines? What do you what do you prefer? What will you prefer? 41:14 41 minutes, 14 seconds Uh these we are going for closed just because of uh getting a uh very good quality that's why we are not going for open systems. We are going for closed 41:23 41 minutes, 23 seconds systems so that uh quality may be maintained at a higher level and uh our doctors are already appointed for these 41:30 41 minutes, 30 seconds labs and they are all all the time they are working and uh for giving good and um accurate and precise results because 41:38 41 minutes, 38 seconds these uh uh type of these labs are useful for the IVF and uh cancer patients and would be cancer patients 41:46 41 minutes, 46 seconds that's why we have to maintain a highest level of quality so we are going for closed system. We are not thinking about how 41:55 41 minutes, 55 seconds sorry sir cost difference. What is the cost difference between if we use open PCR and closed PCR in in investment terms 42:03 42 minutes, 3 seconds and also in terms of revenue for test suppose that s suppose that if you are going for closed system and the test 42:10 42 minutes, 10 seconds cost is 25,000 our investment will be 12,000 rupees and as far as open systems are concerned we will not go because 42:20 42 minutes, 20 seconds flatly we have refused to uh compromise the quality uh because unless until we have a quality these are very sensitive 42:27 42 minutes, 27 seconds issues as far as IVF is concerned and cancer is concerned. Very sensitive issues. We will not take any chance. 42:35 42 minutes, 35 seconds Okay. Got it sir. Got it. Thank you sir. 42:38 42 minutes, 38 seconds Thank you for actually Thank you sir. 42:42 42 minutes, 42 seconds Thank you. The next question comes from the line of Deepakruti from wealth with wisdom. Please go ahead. 42:52 42 minutes, 52 seconds Hi Dr. Amar. Uh great set of numbers. Congratulations to you and your team. Can you hear me? 42:59 42 minutes, 59 seconds Yes. Yes. Thank you, sir. Thank you. Hi, Dr. Just wanted to 43:18 43 minutes, 18 seconds And how does it work? 43:34 43 minutes, 34 seconds You just hold 40%. And out of 40% our marketing team uh tell them uh you give 43:42 43 minutes, 42 seconds this much of money to the doctor and keep this much money to with you. This is the franchise model which is common 43:48 43 minutes, 48 seconds for all the big players and uh as far as referring doctors are concerned as I told you 43:56 43 minutes, 56 seconds with earlier um investor uh because uh our 40% business is referral and uh 10% 44:03 44 minutes, 3 seconds business is sales and 50% business from government sectors in orange as far as these 50% business is concerned we get 44:11 44 minutes, 11 seconds the whole money and uh we don't have to pay anything to anyone and uh self business also we get the money directly 44:18 44 minutes, 18 seconds and as far as 40% is concerned uh through our marketing team uh this this becomes a marketing cost. So if you go 44:26 44 minutes, 26 seconds through if you go through the whole business if you if you go through the whole business uh it is more or less 7 to 10% 44:34 44 minutes, 34 seconds of the total business which goes through the marketing team but uh we we don't pay directly to the cash directly cash to the uh doctors but definitely 44:43 44 minutes, 43 seconds referring doctors uh take the money either in the form of checks or yeah so basically patient 44:54 44 minutes, 54 seconds let's say keep and no Understand? 45:25 45 minutes, 25 seconds How does it work? 45:29 45 minutes, 29 seconds They will give us a place with electricity and uh we will maintain that place and we will put the machines. This is our investment and we will take the 45:38 45 minutes, 38 seconds money directly from the patient as a cash. 45:41 45 minutes, 41 seconds So basically 45:56 45 minutes, 56 seconds we will it is not a matter of receivable from the government sector. Now government has changed the instance. 46:02 46 minutes, 2 seconds Previously what government was doing they were paying the uh money but now they are escaping from uh paying the money to the uh diagnostics and that is 46:11 46 minutes, 11 seconds the reason uh now we will take the money from the uh patient directly 46:28 46 minutes, 28 seconds into 550 basis Normally what happens? 46:43 46 minutes, 43 seconds I just tell you next five years 46:51 46 minutes, 51 seconds because as soon as uh these district hospital grows uh this amount increases and what they are having uh past uh 47:00 47 minutes references they have told us it is a project of 55 cr and 550 crores for 10 47:07 47 minutes, 7 seconds years. It is a 10 years project but what is going to happen that will uh come out in next few quarters 47:15 47 minutes, 15 seconds 55 is the estimated value 47:24 47 minutes, 24 seconds how is it how is it closed in the sense you know how did you win over othersount 47:46 47 minutes, 46 seconds as a company diagnostic is basically radiology 47:57 47 minutes, 57 seconds let's say Dr. Labotics 48:07 48 minutes, 7 seconds through they they collect the sample through the franchise and they do it uh in the lab and normally they put the lab at a very distance place at a very 48:16 48 minutes, 16 seconds economical place and they collect the samples through franchise and do the test. That is their mode soy. But our modus operand is we make we take a big 48:24 48 minutes, 24 seconds building um three or four floors and uh it it has nearly 8 to 9,000 square ft area and we make a full-fledged 48:33 48 minutes, 33 seconds diagnostic center which basically cater the whole vicinity the whole community and we become a uh number one uh 48:41 48 minutes, 41 seconds referring center in that vicinity that is happening for last 20 25 years. This is the motor operandi for Chandan. 48:52 48 minutes, 52 seconds Yeah. 48:52 48 minutes, 52 seconds Uh sorry sir I visited your pashant vihar facility. Amazing. Amazing. I mean it's I mean Dr. 49:00 49 minutes Lal Patl and these are two different business models. I understand they they don't have a referral model. They get 49:08 49 minutes, 8 seconds the sample from the franchise and doctor franchisee collect the samples from the doctor or hospitals and nursing homes 49:15 49 minutes, 15 seconds and transfer the sample to Dr. Lal uh lab and they do the test and it is their modus apprenty and in this modusy so 49:23 49 minutes, 23 seconds many big players are working and competing with each other but we are not competing in that level we we are having a competition from the local players 49:32 49 minutes, 32 seconds only those who are giving pathological and radological services. So our motorreny is entirely different from uh 49:39 49 minutes, 39 seconds these big player but of course we are also now we have started franchise business also. So that why should we lose this business also? But uh till 49:48 49 minutes, 48 seconds date till date we have a 100% business out of uh franchise. Recently we have started uh allotting the franchise and 49:55 49 minutes, 55 seconds we have already allotted 100 in in last two months and we are aiming for 1,000 in next three years. Definitely that business will also add up in our normal business. 50:09 50 minutes, 9 seconds labs overall 60s 50:18 50 minutes, 18 seconds increase uh sorry sir last quart 50:26 50 minutes, 26 seconds I can tell you uh in this year what we have done so okay in this year in this year we will uh we are having 18 labs 50:36 50 minutes, 36 seconds and uh seven comprehensive centers uh giving all type of services and uh we will we will have two wellness 50:44 50 minutes, 44 seconds center in next one month and for next year we are planning for 13 labs and uh one wellness center, one genome lab and 50:51 50 minutes, 51 seconds one pet scan and three comprehensive centers and this year basically this year we have expanded too much. Next year it will be slightly lesser uh and 51:00 51 minutes because we will we have already invested so much in this year and we will start getting the fruits in next year. So uh 51:07 51 minutes, 7 seconds we are uh slowing down somewhat next year for expansion and then after that we will again put more and more center 51:14 51 minutes, 14 seconds just to maintain our profitability and uh we are maintaining such type of thing and moreover we are having a very big 51:21 51 minutes, 21 seconds project this year for government also and that is the reason u we are 51:28 51 minutes, 28 seconds balancing the things last question. 51:37 51 minutes, 37 seconds How does it work? Let's say 51:56 51 minutes, 56 seconds they start giving us patience. 52:01 52 minutes, 1 second State Bank of India, 52:15 52 minutes, 15 seconds public sector, private sector. 52:19 52 minutes, 19 seconds It it is a very solid business and sector mostly sector immediately. 52:32 52 minutes, 32 seconds So onboarding process it gives us a real boost to the business. So we uh we are 52:39 52 minutes, 39 seconds very much uh uh for the corporate business that that is the reason we are having nearly 50% of the total business from corporates because it is a firm 52:47 52 minutes, 47 seconds business and very good business because they they give the payment within a month usually 1 month to 45 days they 52:55 52 minutes, 55 seconds take only CGS takes more than 3 months otherwise all the uh all the sectors uh pay very fast. 53:04 53 minutes, 4 seconds Congratulations. Thank thanks sir. All the best for the upcoming year. Thank you sir. Thank you sir. 53:11 53 minutes, 11 seconds Thank you. The next question comes from the line of moan Araal an individual investor. Please go ahead sir. 53:21 53 minutes, 21 seconds Mr. proceed with your question. Hello uh sir namaste. 53:28 53 minutes, 28 seconds Namaste sir. Namaste sir. Very good. 53:45 53 minutes, 45 seconds Thanks. 54:19 54 minutes, 19 seconds family 25% discount and further on second% 54:31 54 minutes, 31 seconds So, 54:58 54 minutes, 58 seconds thank you sir. Thank you sir. 55:21 55 minutes, 21 seconds Facebook. 55:43 55 minutes, 43 seconds Okay. 55:52 55 minutes, 52 seconds So, 56:11 56 minutes, 11 seconds team. 56:17 56 minutes, 17 seconds More and more people can go for health checkups and it will be a very good thing for society and the country also. 56:29 56 minutes, 29 seconds as an investor of interrupted. 57:13 57 minutes, 13 seconds We request you to join the queue for the followup question. 57:19 57 minutes, 19 seconds B Gome. 57:47 57 minutes, 47 seconds Okay. I will discuss I will discuss it and uh see the probability. Yes. Yes. I will discuss. Thank you. 57:54 57 minutes, 54 seconds Thank you. The next question comes from the line of Kushi Jane from Nan Capital. Please go ahead. 58:00 58 minutes Uh hello sir. Congratulations on a very good set of numbers. Um my thank you ma'am. 58:08 58 minutes, 8 seconds Saying that you've mentioned that thea margins will get back to on an aggregate basis will be around 30 to 32%. Right. 58:16 58 minutes, 16 seconds Uh yes. When do we expect that to be done like in next year FI27 or when do we expect the ITA margins to get back to 40 32%. 58:26 58 minutes, 26 seconds Uh uh with every with every quarter you will see the change from uh this quarter four to uh next every quarter you will see the change. 58:36 58 minutes, 36 seconds Okay. So by the end of upward change up upward change you will see. 58:41 58 minutes, 41 seconds Okay. So by uh quarter 4 F27 can we expect the overall beta margins to be around 30 32%. 58:50 58 minutes, 50 seconds Actually ma'am uh as far as diagnostic is concerned we are already having a a better margin of more than 30%. But it is just because of consolidated results 58:59 58 minutes, 59 seconds because we are adding up pharmacy business also uh it seems to be less uh 19 or 20% but at the moment our margin 59:08 59 minutes, 8 seconds is more than 30%. And we are trying to make it more than 35% in future uh next year. 59:15 59 minutes, 15 seconds Uh okay, got correct for it. Thank you so much. Thank you. Thank you, ma'am. 59:21 59 minutes, 21 seconds Thank you. A request to all participants. Please limit your questions to one per participants. For more questions, please rejoin the queue. 59:29 59 minutes, 29 seconds The next question comes from the line of Shaman CM and individual investor. Please go ahead. 59:34 59 minutes, 34 seconds Hello. Hello. Huh? Uh am sir sir congratulations on a very good 59:43 59 minutes, 43 seconds set of numbers. Uh thank you sir. 59:46 59 minutes, 46 seconds So order there will be no it will be treated as 59:53 59 minutes, 53 seconds B2C only. No correct from a working capital point of view. 59:57 59 minutes, 57 seconds Uh yes yes we will get the payment directly from the patient. Okay. And it is a cash it is a cash business. 1:00:05 1 hour, 5 seconds Cash business. So there will be no strain on working capital. No no no no nothing. 1:00:10 1 hour, 10 seconds Okay sir. any more equity dilution you're seeing sir going forward for keeping already we have gone for preferential 1:00:19 1 hour, 19 seconds shares and this uh this is this is enough or this is enough for the next year expansion and I 1:00:27 1 hour, 27 seconds don't think there will be any dilution in next 2 3 years then sir or any light on Q4 sir uh Q4 1:00:38 1 hour, 38 seconds you will see a change but wait for the numbers Done sir. Okay. All the best sir. Thank you so much. Thank you sir. 1:00:45 1 hour, 45 seconds Thank you. The next question comes from the line of Prabad Kumar and individual investor. Please go ahead. 1:00:52 1 hour, 52 seconds Uh hello sir. Um thank you for the opportunity. The another question I have is what are the challenges or risk you 1:01:00 1 hour, 1 minute are facing in your expansion plans? The things are looking quite good at the moment but while you are trying doing 1:01:07 1 hour, 1 minute, 7 seconds the expansion of things which you were planning for next two three years are you seeing any challenges at the moment. 1:01:18 1 hour, 1 minute, 18 seconds Sorry sir I could not understand what so sorry I will repeat once more. So are 1:01:26 1 hour, 1 minute, 26 seconds you facing any challenge or are you seeing any risks the plan which you have at the moment in No sir no s no sir no sir I I have a 1:01:35 1 hour, 1 minute, 35 seconds full team of 40 persons and uh they are on it and uh we are working day night and we have got the money from 1:01:42 1 hour, 1 minute, 42 seconds preferential shares also so as far as finance is concerned as far as working people are concerned we are on it and uh 1:01:49 1 hour, 1 minute, 49 seconds we don't see any challenge in starting all these symptoms that's why if you go through uh we In this year we will have 1:01:56 1 hour, 1 minute, 56 seconds 18 labs more and three seven comprehensive centers more and u 1:02:03 1 hour, 2 minutes, 3 seconds definitely we can um expand as per our plan and we have a good team of 40 people and uh and these 40 out of these 1:02:11 1 hour, 2 minutes, 11 seconds 40 people 30 people are having nearly uh 30 40% shares of the company they are uh 1:02:18 1 hour, 2 minutes, 18 seconds working owners actually that's why we don't see any challenge as far as uh putting all these expansions s in line 1:02:25 1 hour, 2 minutes, 25 seconds and uh we have got preferential shares also for 104 K and we have already uh received uh 26 crores uh 25% uh in this 1:02:36 1 hour, 2 minutes, 36 seconds month and it the warrants were fully subscribed and uh we are expecting in next one year we will get uh rest of the money and expansion will go smoothly. 1:02:49 1 hour, 2 minutes, 49 seconds All right. Okay. Thank you. One more question sorry that uh while you are trying to expand in the bigger cities uh are you also thinking about going to 1:02:57 1 hour, 2 minutes, 57 seconds like tier three or tier four cities like there you will find mostly the local labs not the like like the listed 1:03:05 1 hour, 3 minutes, 5 seconds or the big players where the local labs are present quite a lot. So are you something like sir your sir your voice is not very 1:03:13 1 hour, 3 minutes, 13 seconds clear please can you repeat the question? 1:03:16 1 hour, 3 minutes, 16 seconds Oh yes uh okay sorry my bad. So my question is like are you also thinking like going tier three or tier four 1:03:24 1 hour, 3 minutes, 24 seconds cities uh where you'll find the local quite a lot. 1:03:30 1 hour, 3 minutes, 30 seconds Yes. Yes. We are already in tier 2, three, two and three cities. We our preference is always for tier two and three cities but because we are going 1:03:39 1 hour, 3 minutes, 39 seconds global and uh that's why we are covering the metropolitan cities also but our main focus is always on tier 2 three and 1:03:46 1 hour, 3 minutes, 46 seconds four cities because these cities are totally deprived of big uh organizations organized they don't have organized uh 1:03:54 1 hour, 3 minutes, 54 seconds business uh that's the reason we cover tier 2 three and four cities um but definitely uh that our 90% business 1:04:02 1 hour, 4 minutes, 2 seconds comes from tier two and electricity because they are totally deprived of good good facilities. 1:04:11 1 hour, 4 minutes, 11 seconds Uh thank you and thank you for answering that question. Thank thank you sir. Thank you sir. 1:04:16 1 hour, 4 minutes, 16 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Pat Achara from Kirin Advisers Primary Limited for 1:04:25 1 hour, 4 minutes, 25 seconds closing comments. Thank you and over to you sir. 1:04:28 1 hour, 4 minutes, 28 seconds Thank you everyone for joining the conference call of Chandan Healthcare Limited. If you have any further query you can write us at researchadvisor.com. 1:04:39 1 hour, 4 minutes, 39 seconds Once again thank you everyone for joining the conference. Thank you. 1:04:45 1 hour, 4 minutes, 45 seconds Thank you. Thank you sir. Thank you on behalf of Limited. That concludes this conference. 1:04:51 1 hour, 4 minutes, 51 seconds Thank you for joining us and you may now disconnect your lines. Thank you. Thank you. Fantasy.